Offshoring , information and communication technologies , firm-level analysis
Abstract:
In this paper, I analyse the relationship between offshoring and ICT at the firm level
differentiating between manufacturing and services. Using firm-level data from the manufacturing
and service sector in Germany and a broad range of ICT measures, overall, the
results reveal a positive relationship between offshoring and ICT. Thus, they support the
argument that ICT might be relevant for offshoring. Controlling for other firm characteristics,
software to coordinate and to manage the supply chain increases the offshoring
probability, in particular for manufacturing firms. For service firms, also general enterprise
software and e-commerce purchases from suppliers make offshoring more likely. Labour
productivity and the realisation of a product innovation are significantly and positively
linked to offshoring for firms from both sectors. This finding confirms the productivity
advantage of offshoring in comparison to non-offshoring firms that is stated in the literature.
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