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Revue de l'OFCE

2006/5 (no 97 bis)


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Article précédent Pages 351 - 371 Article suivant

Résumé

English

We examine factors determining productivity of information-technology service activities at firm level, using most comprehensive data of information service industries in Japan. We focus on the degree of modularisation and resulting outsourcing and economies/diseconomies of scale in software development, and changes. We find that outsourcing has persistent negative effects on total factor productivity, suggesting not only productivity-enhancing modularisation is not fully utilised but also productivity-hindering remnants of traditional main-contractor-subcontractor relations still prevail in Japanese information service industries. We also find diseconomies of scale in software development, suggesting less efficient communication among development team members.
JEL Classification: L23, L25, L86, O33.

Keywords

  • information service industry
  • productivity
  • modularization and outsourcing
  • Japan
  • firm-level data

Plan de l'article

  1. 1 - Introduction
  2. 2 - Factors Determining Productivity of Information-Service Firms
    1. 2.1 - Modularisation
    2. 2.2 - Scale of Development Organisation
  3. 3 - Data: Survey of Selected Service Industries: Volume of Information Service Industries
    1. 3.1 - Japanese Information Service Industries
    2. 3.2 - Characteristics of The Survey of Selected Service Industries
    3. 3.3 - “Firms with Well-Established Information Service Activities”
  4. 4 - Models, Estimation Results and Discussion
    1. 4.1 - Choice of Variables
      1. 4.1.1 - Modularization and Outsourcing
      2. 4.1.2 - Scale of Development Organization and the Number of System Engineers
      3. 4.1.3 - “Profit-driven R&D Investment” Hypothesis and the Profit-to-Cost Ratio
    2. 4.2 - Models and Estimation
    3. 4.3 - Results and Discussion
      1. 4.3.1 - Outsourcing and Remnants of Traditional Relationship
      2. 4.3.2 - Mythical Man-Month and Communication Problems
  5. 5 - Concluding Remarks

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