Finally, we also present the correlation coefficients among the
key input variables in the production and selection equations
(see Table 4). In general, Table 4 shows that the traditional
input variables in the production equation including IT are
correlated with the output variable, ΔlnYi
, while the independent
variables used in the selection equation are not. This
suggests that we have appropriately chosen a set of variables
that influence a firm’s sourcing choice but do not directly
affect productivity.