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Information Technology, Organisational Change and Productivity

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  • Crespi, Gustavo
  • Criscuolo, Chiara
  • Haskel, Jonathan

Abstract

We examine the relationships between productivity growth, IT investment and organisational change (DO) using UK firm data. Consistent with the small number of other micro studies we find (a) IT appears to have high returns in a growth accounting sense when DO is omitted; when DO is included the IT returns are greatly reduced, (b) IT and DO interact in their effect on productivity growth, (c) non-IT investment and DO do not interact in their effect on productivity growth. Some new findings are (a) DO is affected by competition; (b) US-owned firms are much more likely to introduce DO relative to foreign owned firms who are more likely still relative to UK firms; (c) our predicted measured TFP growth slowdown for firms who are not doing DO and/or are in the early stages of IT investment compare well with the macro numbers documenting a UK measured TFP growth slowdown.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6105.

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Date of creation: Feb 2007
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Handle: RePEc:cpr:ceprdp:6105

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Keywords: information technology; organisational change; productivity growth;

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Cited by:
  1. Nick Bloom & Raffaella Sadun & John Van Reenen, 2007. "Americans do I.T. better: US multinationals and the productivity miracle," LSE Research Online Documents on Economics 4555, London School of Economics and Political Science, LSE Library.
  2. Richard Dion & Robert Fay, 2008. "Understanding Productivity: A Review of Recent Technical Research," Discussion Papers 08-3, Bank of Canada.
  3. Raquel Ortega-Argil├ęs, 2012. "The Transatlantic Productivity Gap: A Survey Of The Main Causes," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 395-419, 07.
  4. repec:idb:brikps:71298 is not listed on IDEAS

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