Outsourcing and Firm-level Performance

Bernd Görzig and Andreas Stephan

No 309, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: Using firm-level panel data from the German cost structure survey over the period 1992 to 2000, our empirical analysis shows that firms that increased material inputs relative to internal labor costs performed better in terms of gross operating surplus than other firms. However, firms that increased external services relative to internal labor costs, thus outsourcing service functions previously provided within the firm, performed worse. In sum, our findings support the view that firms tend to overestimate the benefits accruing from outsourcing of services previously provided internally.

Keywords: Outsourcing; Firm Performance; Business Service Sector. (search for similar items in EconPapers)
JEL-codes: L22 L23 L60 (search for similar items in EconPapers)
Pages: 23 p.
Date: 2002
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (63)

Downloads: (external link)
https://www.diw.de/documents/publikationen/73/diw_01.c.38487.de/dp309.pdf (application/pdf)

Related works:
Working Paper: Outsourcing and Firm-level Performance (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp309

Access Statistics for this paper

More papers in Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().