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B2B or Not to Be: Does B2B E-Commerce Increase Labour Productivity?

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  • Irene Bertschek
  • Helmut Fryges
  • Ulrich Kaiser

Abstract

We implement an endogeneous switching-regression model for labour productivity and firms' decisions 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 1,460 German firms shows that there is a simultaneous relationship between labour productivity and the adoption of B2B. Firms deciding to use B2B e-commerce employ their input factors more efficiently than non-B2B users. Conversely, firms refrain from engaging in B2B probably because they expect the cost of B2B adoption will not be sufficiently compensated by productivity gains.

Suggested Citation

  • Irene Bertschek & Helmut Fryges & Ulrich Kaiser, 2006. "B2B or Not to Be: Does B2B E-Commerce Increase Labour Productivity?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(3), pages 387-405.
    • Handle: RePEc:taf:ijecbs:v:13:y:2006:i:3:p:387-405
    DOI: 10.1080/13571510600961395
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    Cited by:

    1. Derya Fındık & Aysıt Tansel, 2013. "Intangible investment and Technical efficiency: The case of software-intensive manufacturing firms in Turkey," EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey 235, Ekonomik Yaklasim Association.
    2. Yang, Zhuofan & Shi, Yong & Yan, Hong, 2017. "Analysis on pure e-commerce congestion effect, productivity effect and profitability in China," Socio-Economic Planning Sciences, Elsevier, vol. 57(C), pages 35-49.
    3. Liu, Ting-Kun & Chen, Jong-Rong & Huang, Cliff C.J. & Yang, Chih-Hai, 2013. "E-commerce, R&D, and productivity: Firm-level evidence from Taiwan," Information Economics and Policy, Elsevier, vol. 25(4), pages 272-283.
    4. Sarbu Miruna, 2017. "Does Social Media Increase Labour Productivity?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 237(2), pages 81-113, April.
    5. Quirós Romero, Cipriano & Rodríguez Rodríguez, Diego, 2010. "E-commerce and efficiency at the firm level," International Journal of Production Economics, Elsevier, vol. 126(2), pages 299-305, August.
    6. Fryges, Helmut, 2004. "Productivity, Growth, and Internationalisation: The Case of German and British High Techs," ZEW Discussion Papers 04-79, ZEW - Leibniz Centre for European Economic Research.
    7. Sarbu, Miruna, 2013. "Does social software increase labour productivity?," ZEW Discussion Papers 13-041, ZEW - Leibniz Centre for European Economic Research.
    8. Engelstätter, Benjamin, 2009. "Enterprise systems and labor productivity: disentangling combination effects," ZEW Discussion Papers 09-040, ZEW - Leibniz Centre for European Economic Research.
    9. Derya Findik & Aysit Tansel, 2015. "​ Intangible Investment and Technical Efficiency: The Case of Software-Intensive Manufacturing Firms in Turkey," Working Papers 2015/11, Turkish Economic Association.
    10. Falk, Martin & Hagsten, Eva, 2015. "E-commerce trends and impacts across Europe," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 357-369.
    11. Diyah Probowulan & Ardianto Ardianto, 2024. "Internet financial reporting disclosure index of e‐commerce businesses on social media," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 31(2), June.
    12. Khalid W. Alrawi & Hamid R. Ekbia & Khalifa H. Jaber, 2008. "A New Marketing Strategy for E-Commerce," Global Business Review, International Management Institute, vol. 9(2), pages 273-286, August.
    13. Zhu, Facang & Shi, Qiule & Balezentis, Tomas & Zhang, Chonghui, 2023. "The impact of e-commerce and R&D on firm-level production in China: Evidence from manufacturing sector," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 101-110.
    14. Bertschek, Irene & Niebel, Thomas & Nikogosian, Vigen & Ohnemus, Jörg & Rammer, Christian & Sarbu, Miruna, 2010. "Informations- und Telekommunikationstechnologien als Wegbereiter für Innovationen: Fünfter Nationaler IT-Gipfel. Dresden 2010," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110539.
    15. Ohnemus, Jörg, 2007. "Does IT Outsourcing Increase Firm Success? An Empirical Assessment using Firm-Level Data," ZEW Discussion Papers 07-087, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    Business-to-Business E-Commerce; Labour Productivity; Endogenous Switching Regression Model; Survey Data;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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