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


Bertschek, I and Fryges, HR and Kaiser, U, B2B or Not to Be: Does B2B E-Commerce Increase Labour Productivity?, International Journal of the Economics of Business, 13, (3) pp. 387-405. ISSN 1357-1516 (2006) [Refereed Article]

Copyright Statement

Copyright 2006 International Journal of the Economics of Business

DOI: doi:10.1080/13571510600961395


We implement an endogeneous switching-regression model for labour productivity and firmsí 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.

Item Details

Item Type:Refereed Article
Keywords:Business-to-Business E-Commerce; Labour Productivity; Endogenous Switching Regression Model; Survey Data
Research Division:Economics
Research Group:Applied economics
Research Field:Industry economics and industrial organisation
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Production
UTAS Author:Fryges, HR (Dr Helmut Fryges)
ID Code:85368
Year Published:2006
Deposited By:Australian Innovation Research Centre
Deposited On:2013-07-02
Last Modified:2013-12-23

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