Organizational Innovation, Information Technology, and Outsourcing to Business Services

Werner Hölzl, Andreas Reinstaller () and Paul Windrum

Chapter 10 in Business Services in European Economic Growth, 2007, pp 177-192 from Palgrave Macmillan

Abstract: Abstract This chapter examines the relationship between organizational innovation, the introduction of new internet-based ICTs, de-verticalization, and the rapid growth in business-service outsourcing since the early 1990s. We present data on the range of activities that are being outsourced, and discuss a set of potential advantages associated with outsourcing activities to knowledge-intensive service providers (KIBS). We also examine the latest empirical studies which throw up a set of potential disadvantages associated with outsourcing. These suggest that outsourcing may have advantages in the short run, but may also have negative long-run implications for competitive performance.

Keywords: Productivity Growth; Organizational Design; Business Service; Productivity Frontier; Innovation Strategy (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-22879-5_11

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DOI: 10.1057/9780230228795_11

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