This paper draws on the ICT Professionals Survey (carried out between December 2000-February 2001) and matching post-survey financial data to examine the determinants of ICT-related ‘internal skill gaps’ and their impact on company sales performance. The most common reasons for internal skill gaps (ICT professionals lacking full proficiency in their current jobs) are reported as ‘lack of skills or experience of new technologies’ and ‘failure to train and develop staff’. Multivariate analysis reveals a significant negative relationship between the severity of ICT skill gaps and company sales performance, after controlling for capital assets, labour inputs, sector, region and other company characteristics. The analysis also provides some evidence of positive and statistically significant links between sales performance and provision of structured ICT training.
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Paper provided by National Institute of Economic and Social Research in its series NIESR Discussion Papers with number
236.