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Exploiting ICT potential in service firms in transition economies

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  • Metka Stare
  • Andreja Jaklič
  • Patricia Kotnik

Abstract

Service industries are the most intensive users of information-communication technology (ICT) and some developed countries have already displayed noticeable productivity gains due to ICT use in services. The pattern of intensive use of ICT in services tends to be replicated in transition economies, however the evidence of ICT impacts on growth and productivity is lacking at the aggregate and industry level owing to deficient data and methodological problems. To overcome some of the problems in estimating the effects of ICT use we pursue firm-level analysis and apply production function approach to estimate the impact of ICT on the performance of service firms in Slovenia. The results suggest that service firms are more intensive ICT users than manufacturing firms and that ICT use significantly influences the productivity of service firms. The positive impact of ICT use on productivity applies to all service firms irrespective of their size. The links are stronger for service firms with above average ICT use. Due to the absence of data on complementary expenditures for training and organisational change related to ICT adoption the results might overemphasise the effects of ICT investment.

Suggested Citation

  • Metka Stare & Andreja Jaklič & Patricia Kotnik, 2006. "Exploiting ICT potential in service firms in transition economies," The Service Industries Journal, Taylor & Francis Journals, vol. 26(3), pages 287-302, April.
    • Handle: RePEc:taf:servic:v:26:y:2006:i:3:p:287-302
    DOI: 10.1080/02642060600570935
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    Cited by:

    1. Aleksandra Skorupinska & Joan Torrent-Sellens, 2017. "ICT, Innovation and Productivity: Evidence Based on Eastern European Manufacturing Companies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 768-788, June.
    2. Stefan Schweikl & Robert Obermaier, 2020. "Lessons from three decades of IT productivity research: towards a better understanding of IT-induced productivity effects," Management Review Quarterly, Springer, vol. 70(4), pages 461-507, November.
    3. Yeo, Benjamin & Grant, Delvin, 2018. "Predicting service industry performance using decision tree analysis," International Journal of Information Management, Elsevier, vol. 38(1), pages 288-300.
    4. John N. Walsh & Jamie O’Brien, 2017. "A Knowledge-Based Framework for Service Management," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-31, December.

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