Productivity and Information Technology: The Elusive Connection
AbstractThis study analyzes the effect of information technology on the efficiency of production operations in a specific manufacturing process. Survey data from 584 establishments engaged in the machining process in 21 different industries are used to construct and test an empirical model that takes into account product characteristics, the type of technology (computer-programmable automation or conventionally controlled) machines, the extent of technological change at the plant, process-specific characteristics such as the scale of operations and degree of customization, labor policies, and structural features of the organization of work. The results indicate that there is a significant efficiency advantage from using programmable automation technology and that technological advantages accumulate with experience and with the repeated opportunities for learning associated with large volume and frequent product changes. The most efficient use of this technology occurs in plants with work practices that involve a higher ratio of machines to workers (as in a cellular approach to manufacturing) and allow production workers to perform programming tasks to a greater degree. Unionized plants are also significantly more efficient than non-union plants.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 40 (1994)
Issue (Month): 11 (November)
productivity; manufacturing performance; production efficiency; technological change; programmable automation; organization of work;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jones, Derek C. & Kalmi, Panu & Kauhanen, Antti, 2011.
"Firm and employee effects of an enterprise information system: Micro-econometric evidence,"
International Journal of Production Economics,
Elsevier, vol. 130(2), pages 159-168, April.
- Derek C. Jones & Panu Kalmi & Antti Kauhanen, 2010. "Firm and Employee Effects of an Enterprise Information System: Micro-econometric Evidence," William Davidson Institute Working Papers Series wp992, William Davidson Institute at the University of Michigan.
- Maryellen R. Kelley & Cynthia R. Cook, 1998. "The Institutional Context and Manufacturing Performance: The Case of the U.S. Defense Industrial Network," NBER Working Papers 6460, National Bureau of Economic Research, Inc.
- Ding, Waverly W. & Levin, Sharon G. & Stephan, Paula E. & Winkler, Ann E., 2009. "The Impact of Information Technology on Scientistsâ€™ Productivity, Quality and Collaboration Patterns," Institute for Research on Labor and Employment, Working Paper Series qt80n3512q, Institute of Industrial Relations, UC Berkeley.
- Kelley, Maryellen R. & Arora, Ashish, 1996. "The role of institution-building in US industrial modernization programs," Research Policy, Elsevier, vol. 25(2), pages 265-279, March.
- Sundarraj, R. P. & Talluri, Srinivas, 2003. "A multi-period optimization model for the procurement of component-based enterprise information technologies," European Journal of Operational Research, Elsevier, vol. 146(2), pages 339-351, April.
- Fligstein, Neil & Shin, Taek-Jin, 2007. "Shareholder Value and the Transformation of American Industries, 1984-2001," Institute for Research on Labor and Employment, Working Paper Series qt4r16k6j6, Institute of Industrial Relations, UC Berkeley.
- Martinez-Lorente, Angel R. & Sanchez-Rodriguez, Cristobal & Dewhurst, Frank W., 2004. "The effect of information technologies on TQM: An initial analysis," International Journal of Production Economics, Elsevier, vol. 89(1), pages 77-93, May.
- John Laitner & Dmitriy Stolyarov, 2003. "Technological Change and the Stock Market," American Economic Review, American Economic Association, vol. 93(4), pages 1240-1267, September.
- Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
- Zand, Fardad & Van Beers, Cees & Van Leeuwen, George, 2011. "Information technology, organizational change and firm productivity: A panel study of complementarity effects and clustering patterns in Manufacturing and Services," MPRA Paper 46469, University Library of Munich, Germany.
- António Madureira & Nico Baken & Harry Bouwman, 2011. "Value of digital information networks: a holonic framework," Netnomics, Springer, vol. 12(1), pages 1-30, April.
- Heine, Michelle Lane & Grover, Varun & Malhotra, Manoj K., 2003. "The relationship between technology and performance: a meta-analysis of technology models," Omega, Elsevier, vol. 31(3), pages 189-204, June.
- Fligstein, Neil & Shin, Taek-Jin, 2005. "Shareholder Value and Changes in American Industries, 1984-2000," Institute for Research on Labor and Employment, Working Paper Series qt82j7915n, Institute of Industrial Relations, UC Berkeley.
- Guido Schryen, 2010. "Preserving Knowledge on IS Business Value," Business & Information Systems Engineering, Springer, vol. 2(4), pages 233-244, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.