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Table 1 The determinants of outsourcing, organizational change measure: expanded use of bought-in products and services, 2002–2004, logit model

From: A research note on the determinants and consequences of outsourcing using German dataEinige Bemerkungen zu den Bestimmungsgründen und Auswirkungen von Outsourcing auf Basis deutscher Daten

Variable

Coefficient (s.e.)

Elasticities (s.e.)

Sales per employee

−0.0001 (0.0003)*

−0.072 (0.044)

Export share

0.007 (0.002)***

0.047 (0.016)***

Increasing sales expected

0.278 (0.110)**

0.048 (0.018)***

Investments in ICT

0.369 (0.127)***

0.165 (0.057)***

Investments in production facilities

0.139 (0129)

0.061 (0.056)

State-of-the-art technology

−0.114 (0.106)

−0.069 (0.065)

Number of employees

0.075 (0.068)

0.237 (0.166)

Wages per employee

0.080 (0.068)

0.133 (0.111)

Share of high-skilled workers

0.251 (0.219)

0.145 (0.126)

Separation rate

0.653 (0.372)*

0.033 (0.019)*

Share of fixed-term workers

−0.041 (0.490)

−0.001 (0.016)

Works council

0.231 (0.145)

0.061 (0.038)

Collective agreement

−0.072 (0.116)

−0.033 (0.053)

Western Germany

0.315 (0.127)**

0.163 (0.065)**

Establishment founded before 1990

0.103 (0.118)

0.055 (0.063)

Single-establishment firm (without subsidiaries)

−0.280 (0.117)**

−0.190 (0.080)

Legal form (omitted category: sole trader)

  

 Partnership

0.223 (0.225)

0.019 (0.018)

 Limited liability corporation

0.301 (0.174)*

0.161 (0.092)*

 Company limited by shares

0.036 (0.274)

0.001 (0.010)

 Public corporation

−0.446 (1.116)

−0.002 (0.004)

 Other legal form

−0.391 (0.523)

−0.006 (0.008)

Log likelihood

−1526.244

LR Chi-square (d.f.)

340.57***

Pseudo R 2

0.1077

N

4504

  1. Notes: Right-hand side variables are base-year (2002) characteristics. The model also includes 31 industry dummies
  2. *, **, and *** denote statistical significance at the 10%, 5%, and 1% levels, respectively. Robust standard errors are in parentheses