Diversify or not? The link between global sourcing of ICT goods and firm performance
Irene Bertschek and
No 23-025, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research
Our paper contributes to the discussion about Europe's digital sovereignty. We analyze the relationship between firm performance and the diversification of sourcing countries for imported ICT goods. The analysis is based on administrative data for 3888 German manufacturing firms that imported ICT goods in the years 2010 and 2014. We find that firms that diversify the sourcing of ICT goods across multiple countries perform better than similar firms with a less diversified sourcing structure. This result holds for value added as well as for gross operational surplus as performance measures and for two different indicators of diversification.
Keywords: ICT goods imports; global sourcing; digital sovereignty; firm performance (search for similar items in EconPapers)
JEL-codes: D24 F14 F23 L14 L23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-ict, nep-int, nep-sbm and nep-tid
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Working Paper: Diversify or Not? – The Link between Global Sourcing of ICT Goods and Firm Performance (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:23025
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