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Direct and Indirect Complementarity between Workplace Reorganization and New Technology

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Author Info

  • Annalisa Cristini

    ()
    (University of Bergamo)

  • Alessandro Gaj

    ()
    (University of Bergamo)

  • Riccardo Leoni

    ()
    (University of Bergamo)

Abstract

We link survey and balance sheet data to investigate the extent of complementarity between the introduction of new technology and changes in workplace practices. Across all firms, we find that new technology is complementary with higher work intensity. Similarly, changes in work techniques yield diffuse complementarity gains, particularly in firms undergoing extensive restructuring. Changes in work organization yield, on average, complementarity gains in terms of productivity growth. Substitutability between new technology and specific workplace changes is sometimes found, consistently with the presence of costs associated to learning functions or resistance to changes.

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Bibliographic Info

Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 98 (2008)
Issue (Month): 2 (March-April)
Pages: 87-117

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Handle: RePEc:rpo:ripoec:v:98:y:2008:i:2:p:87-117

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Related research

Keywords: workplace practices; ICT investments; complementarity.;

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References

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  1. Sandra E. Black & Lisa M. Lynch, 2003. "What's driving the new economy?: the benefits of workplace innovation," Working Paper Series 2003-23, Federal Reserve Bank of San Francisco.
  2. Bauer, Thomas K., 2003. "Flexible Workplace Practices and Labor Productivity," IZA Discussion Papers 700, Institute for the Study of Labor (IZA).
  3. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
  4. Keld Laursen & Nicolai J. Foss, 2003. "New human resource management practices, complementarities and the impact on innovation performance," Cambridge Journal of Economics, Oxford University Press, vol. 27(2), pages 243-263, March.
  5. S. Black & L. Lynch, 1997. "How to compete: the impact of workplace practices and information technology on productivity," LSE Research Online Documents on Economics 20298, London School of Economics and Political Science, LSE Library.
  6. Matteo Bugamelli & Patrizio Pagano, 2001. "Barriers to investment in ICT," Temi di discussione (Economic working papers) 420, Bank of Italy, Economic Research and International Relations Area.
  7. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 339-376, February.
  8. Francis Green, 2002. "Why Has Work Effort Become More Intense?," Studies in Economics 0207, Department of Economics, University of Kent.
  9. repec:rie:review:v:8:y:2003:i:2:n:7 is not listed on IDEAS
  10. Caroli, Eve & Askenazy, Philippe, 2010. "Innovative Work Practices, Information Technologies, and Working Conditions : Evidence for France," Economics Papers from University Paris Dauphine 123456789/7143, Paris Dauphine University.
  11. Susan Athey & Scott Stern, 1998. "An Empirical Framework for Testing Theories About Complimentarity in Organizational Design," NBER Working Papers 6600, National Bureau of Economic Research, Inc.
  12. Sandro Trento & Massimo Warglien, 2001. "Nuove tecnologie e cambiamenti organizzativi: alcune implicazioni per le imprese italiane," Temi di discussione (Economic working papers) 428, Bank of Italy, Economic Research and International Relations Area.
  13. Takao Kato & Motohiro Morishima, 1998. "The Productivity Effects of Human Resource Management Practices: Evidence from New Japanese Panel Data," Macroeconomics 9812003, EconWPA, revised 08 Dec 1998.
  14. Jonathan Michie & Maura Sheehan, 2003. "Labour market deregulation, 'flexibility' and innovation," Cambridge Journal of Economics, Oxford University Press, vol. 27(1), pages 123-143, January.
  15. Zwick, Thomas, 2004. "Employee participation and productivity," Labour Economics, Elsevier, vol. 11(6), pages 715-740, December.
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