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On the Relation Between Organisational Practices and New Technologies: the Role of (Time Based) Competition

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  • Philippe Askenazy
  • David Thesmar
  • Mathias Thoenig

Abstract

This article studies some aspects of organisation choice while explicitly accounting for the fact that firms compete on the product market. Firms compete by introducing drastic innovations, while organisation choice results from a tradeoff between productive efficiency and reactivity. We show that the adoption of information technologies and the choice of reactive organisations are complements via an industry-level equilibrium effect. This view contrasts with the existing literature which emphasises the existence of similar complementarities "at the firm level". Consistently with our model, we find that industry-level, rather than firm-level, diffusion of information technologies explains firms' organisational practices. Copyright 2006 Royal Economic Society.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 116 (2006)
Issue (Month): 508 (01)
Pages: 128-154

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Handle: RePEc:ecj:econjl:v:116:y:2006:i:508:p:128-154

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Cited by:
  1. Daron Acemoglu & Philippe Aghion & Claire Lelarge & John Van Reenen & Fabrizio Zilibotti, 2007. "Technology, Information, and the Decentralization of the Firm," The Quarterly Journal of Economics, MIT Press, vol. 122(4), pages 1759-1799, November.
  2. Maria Guadalupe & Julie Wulf, 2008. "The Flattening Firm and Product Market Competition: The Effect of Trade Liberalization," NBER Working Papers 14491, National Bureau of Economic Research, Inc.
  3. Ben aoun, Leila & Dubrocard, Anne, 2010. "TIC, innovation et effets perçus dans les entreprises luxembourgeoises
    [ICT, Innovation and perceived effects in Luxembourgish firms]
    ," MPRA Paper 28375, University Library of Munich, Germany.

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