B2b or Not to Be: Does B2b E-Commerce Increase Labour Productivity?

26 Pages Posted: 13 Jul 2004 Last revised: 9 Jun 2014

See all articles by Irene Bertschek

Irene Bertschek

ZEW – Leibniz Centre for European Economic Research

Helmut Fryges

Technopolis Group; University of Tasmania - Australian Innovation Research Centre; Center for European Economic Research (ZEW)

Ulrich Kaiser

University of Southern Denmark - Faculty of Social Sciences; Center for Economic and Business Research (CEBR); Centre for European Economic Research

Date Written: July 2004

Abstract

We implement an endogeneous switching-regression model for labour productivity and firms' decision to use business-to-business (B2B) e-commerce. Our approach allows B2B usage to affect any parameter of the labour productivity equation and to properly take account of strategic complementarities between the input factors and B2B usage. Empirical evidence from 1,394 German firms shows that firms using B2B e-commerce have a significantly higher output elasticity with respect to ICT-investment and produce significantly more efficiently than firms that do not use B2B. Firms' labour productivity is enhanced by using B2B.

Keywords: Business-to-business e-commerce, labour productivity, endogenous switching regression model, survey data

JEL Classification: C21, D24

Suggested Citation

Bertschek, Irene and Fryges, Helmut and Kaiser, Ulrich, B2b or Not to Be: Does B2b E-Commerce Increase Labour Productivity? (July 2004). ZEW - Centre for European Economic Research Discussion Paper No. 04-045. Available at SSRN: https://ssrn.com/abstract=564183 or http://dx.doi.org/10.2139/ssrn.564183

Irene Bertschek (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Helmut Fryges

Technopolis Group ( email )

Grosse Seestraße 26
Frankfurt am Main, 60384
Germany

University of Tasmania - Australian Innovation Research Centre ( email )

1 College Road
Sandy Bay TAS, Tasmania 7005
Australia

HOME PAGE: http://www.utas.edu.au/airc

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Ulrich Kaiser

University of Southern Denmark - Faculty of Social Sciences ( email )

Campusvej 55
DK-5230 Odense M
Denmark

HOME PAGE: http://www.sam.sdu.dk/staff/uka

Center for Economic and Business Research (CEBR) ( email )

Porcelaenshaven, Bldg 65
DK-2000 Frederiksberg
Denmark

HOME PAGE: http://www.cebr.dk/uk

Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

HOME PAGE: http://www.zew.de/de/mitarbeiter/mitarbeiter.php3?action=mita&kurz=uka

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