Economics at your fingertips  

Performance, IT maturity and offshoring behaviour of Italian manufacturing corporations in the dire straits of globalisation

Andrea de Panizza ()

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines productivity and profitability of Italian manufacturing corporations in relation to IT usage and offshoring of intermediate goods. The information set is based on a balanced panel of enterprises' economic accounts and foreign trade statistics for the years 2000-2004, linked to 2002 and 2004 surveys on ICT usage. The analytical framework is similar to one previously developed for Sweden, allowing for (partial) comparability. Offshoring is positively related to productivity, although the significance of intensity variables depends on employment size and industry. The same occurs for some variables of IT maturity (workers using PCs and a composite indicator), and for human resources as proxied by cost of labour (i.e. wage levels). These variables also show a positive impact on profitability, although limited to productions which are easy to outsource. Offshoring decisions and IT maturity, instead, do not present any strong mutual relation. The key issue of the direction of causality between IT maturity, offshoring and productivity is also tentatively addressed: lagged offshoring appears to weakly impact productivity, while lagged IT maturity does not, and a reverse causality from productivity to IT maturity is revealed. This first evidence, albeit limited, challenges some commonplaces, suggesting the coexistence of different business models. A richer information set should allow for a more appropriate treatment of these issues, as well as for extending the analysis to other, crucial determinants of performance.

Keywords: Firm behaviour; productivity; profitability; IT usage; offshoring; industrial studies; Manufacturing; Italian economy (search for similar items in EconPapers)
JEL-codes: D21 L25 O33 L24 O14 (search for similar items in EconPapers)
Date: 2008-04
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in ICT impact assessment by linking data across sources and countries (2008): pp. 204-214

Downloads: (external link) original version (application/pdf)

Related works:
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:

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

Page updated 2021-05-29
Handle: RePEc:pra:mprapa:22029