IT Outsourcing—A Source of Innovation? Microeconometric Evidence for Germany

Irene Bertschek, Daniel Erdsiek and Manuel Trenz

Managerial and Decision Economics, 2017, vol. 38, issue 7, 941-954

Abstract: Does IT outsourcing really influence firms' process innovativeness? We investigate this question with a distinguished view on manufacturing and service sectors. Previous studies suggest firms sourcing out IT services to external service providers are generally more process innovative. Based on a firm‐level data set comprising 1452 firms from the German manufacturing and services sectors, the econometric analysis confirms a positive and significant relationship between IT outsourcing and process innovation activity on an aggregate level. As proposed by our framework of differences between manufacturing and service firms, a more detailed analysis reveals that this positive relationship only holds for services firms. Copyright © 2016 John Wiley & Sons, Ltd.

Date: 2017
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Working Paper: IT outsourcing - A source of innovation? Microeconometric evidence for Germany (2012)
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