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Outsourcing and Firm-level Performance Author info | Abstract | Publisher info | Download info | Related research | Statistics Bernd Görzig
Andreas Stephan
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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.
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number
309.
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Length: 23 p.
Date of creation: 2002Date of revision:
Handle: RePEc:diw:diwwpp:dp309Contact details of provider: Postal: Mohrenstra�e 58, D-10117 Berlin Phone: xx49-30-89789-0 Fax: xx49-30-89789-200 Email: Web page: http://www.diw.de/en More information through EDIRC
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Keywords: Outsourcing ; Firm Performance ; Business Service Sector. ; Other versions of this item:
Find related papers by JEL classification: L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
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