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e-Business in the chemical, rubber and plastics industryExhibit 4.3-4: The intensity of ICT use and change in the market shareIndependent variable a Coefficient Standard ErrorICT endowment(A2, A3, A4, A6, A7, B1, B3)0.063*** 0.020Firm founded before 1998 (Z2b) -0.270 0.174< 249 employees (G2) 0.286 0.288Model diagnosticsN = 822R-squared = 0.03Note: Ordered probit estimates. Reference groups: firms with >250 employees (reference group for firms with
e-Business in the chemical, rubber and plastics industryThe dependent variable can take a value “1” if a company outsourced any of its businessactivities in the last 12 months, or “0” if it did not (see footnote). The explanatory variablecontrolling for a company’s ICT adoption level is an index that can take values between“0” and “14”, depending on the number of ICT applications a company has adopted (seefootnote). In addition, the regression includes dummy variables controlling for firm size,age and country of origin. To analyse the relationship between the change in marketshare and ICT endowment, a probit regression was run. Exhibit 4.3-5 shows the results ofthe regression which lead to the following conclusion:ICT adoption is positively correlated with outsourcing: The hypothesis wasconfirmed: companies with a more intensive use of ICT is more likely to haveoutsourced business activities in a period of 12 months prior to the interview. Again,as with other hypotheses in Sections 4.2 and 4.3, a simple causality should not beestablished. Still, since the regression analysis controlled for firm size, 143 the findingat least indicates some links between ICT usage and the propensity to outsourcebusiness activities. The facilitator function of ICT in the coordination with theexternal service providers is a possible and likely explanation.Exhibit 4.3-5: The intensity of ICT use and outsourcingIndependent variable a Coefficient Standard ErrorICT endowment(A2, A3, A4, A6, A7, B1, B3)0.060*** 0.016< 249 employees (G2) -0.146 0.188Firm founded before 1998 (Z2b) 0.125 0.126Model diagnosticsN = 910R-squared = 0.08Note: Probit estimates. Reference groups: firms with >250 employees (reference group for firms with
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