Do Information and Communication Technology access and innovation increase outsourcing in small and medium enterprises?

Abstract

In this paper we present an econometric model to determine whether an SME (Small and Medium Sized Enterprise)'s probability of outsourcing depends on their levels of innovation and information and communication technology use. The predictions of the econometric model are tested by means of a LOGIT model using a cross section sample of an Argentinean SME for the year 2006. The model predicts that the level of innovation of an SME will significantly influence its probability of outsourcing. Besides, it stresses the negative incidence of the information and communication technologies (ICT) access on the outsourcing decision.

The role of subcontracting on innovation: an assessment of small and medium enterprises in Nigeria

“…The study found that expectation with regard to technological change in production process is a significant explanatory variable of the probability of subcontracting production. Similarly, Görg and Hanley (2007) cited in Alderete (2013) found a positive effects between subcontracting and innovation in international subcontracting activity at the level of the individual establishment. These positive effects stems from the level of cooperation that exists between firms in the area of product, production process, organizational know-how and marketing.…”

Antecedents of Second Order Outsourcing by Manufacturing Suppliers in Low-Cost Countries

“…However, firms may not have up-to-date technology or capacity to do their business functions. Suppliers would have superior technology considering that the suppliers are specific in the core activities (Alderete, 2013). These up-to-date technologies give other small and medium suppliers competitive advantages to compete with rivals that add value to their product or services.…”