Resource title

Does IT Outsourcing Increase Firm Success? An Empirical Assessment using Firm-Level Data

Resource image

image for OpenScout resource :: Does IT Outsourcing Increase Firm Success? An Empirical Assessment using Firm-Level Data

Resource description

Using German firm-level data, an endogenous switching regression model within a production function framework is estimated in order to explore differences in labor productivity between IT outsourcing and non-IT outsourcing firms. This approach takes possible complementarities between IT outsourcing and production input factors into account and further allows IT outsourcing to affect any factor of the production function. Estimation results show that IT outsourcing firms produce more efficiently than non-IT outsourcing firms. Furthermore, they have a significantly larger output elasticity with respect to computer workers. Therefore computer workers and IT outsourcing can be interpreted as complementary factors positively affecting firms? labor productivity. An additional analysis indicates that IT outsourcing, in the medium-term, has a positive effect on firms? employment growth rate.

Resource author

Jörg Ohnemus

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24671

Resource license

Adapt according to the presented license agreement and reference the original author.