Faculty Digital Archive

Archive@NYU >
NET Institute >
NET Institute Working Papers Series >

Please use this identifier to cite or link to this item: http://hdl.handle.net/2451/29500

Title: Heterogeneity and Information Spillovers in Web Service Sourcing
Authors: Deltas, George - University of Illinois
Hong, Seung-Hyun - University of Illinois
Keywords: Heterogeneity; Information spillovers; Outsourcing; Switching regression
Issue Date: 2009
Series/Report no.: Net Institute Working Paper;09-20
Abstract: This paper studies the role of firm heterogeneity and information spillovers in the sourcing decision to provide web services. To this end, we develop a theoretical model that relates these factors to firms' decisions to outsource or use in-house resources (insource). Based on this theoretical framework, we further construct an econometric model. Using our estimated model, we investigate why insourcing of web services is much more prevalent than outsourcing. We find that insourcing is likely to generate the higher value for most firms, and lack of information on the ecacy of outsourcing is unlikely to account for the dominance of insourcing over outsourcing. Therefore, differences in firm choices with regard to web services provision is primarily driven by firm heterogeneity, rather than by information spillovers.
URI: http://hdl.handle.net/2451/29500
Appears in Collections:NET Institute Working Papers Series

Files in This Item:

File Description SizeFormat
Deltas_Hong_09-20.pdf646.05 kBAdobe PDFView/Open

Items in Faculty Digital Archive are protected by copyright, with all rights reserved, unless otherwise indicated.


The contents of the FDA may be subject to copyright, be offered under a Creative Commons license, or be in the public domain.
Please check items for rights statements. For information about NYU’s copyright policy, see http://www.nyu.edu/footer/copyright-and-fair-use.html 
Valid XHTML 1.0 | CSS