Do Information and Communication Technology access and innovation increase outsourcing in Small and Medium Enterprises?

Abstract

In this paper we present an econometric model to determine whether a SME (Small and Medium Sized Enterprise)'s probability of outsourcing depends on their levels of innovation and information and communication technology use. The predictions of the econometric model are tested by means of a LOGIT model using a cross section simple of an Argentinean SME for the year 2006. The model predicts that the level of innovation of a SME will significantly influence its probability of outsourcing. Besides, it stresses the negative incidence of the information and communication technologies (ICT) access on the outsourcing decision.