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Do ICT Skill Shortages Hamper Firms Performance?

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  • John Forth

Abstract

In light of the increased relative demand for skilled labour associated with Information and Communication Technologies (ICTs), we combine survey data for UK enterprises in 1999 with post-survey financial data for the same enterprises to assess the impact of ICT skill shortages on firms' financial performance. There is clear evidence that ICT skill shortages have an indirect negative impact on performance through the restrictions that such deficiencies place on ICT adoption and on the intensity of ICT use post-adoption. However, there is only weak evidence of skill shortages impinging directly on performance at given levels of ICT adoption and utilisation.

Suggested Citation

  • John Forth, 2006. "Do ICT Skill Shortages Hamper Firms Performance?," National Institute of Economic and Social Research (NIESR) Discussion Papers 281, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrd:281
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    Cited by:

    1. Sandulli, Francesco D. & Baker, Paul M.A. & López-Sánchez, José I., 2013. "Can small and medium enterprises benefit from skill-biased technological change?," Journal of Business Research, Elsevier, vol. 66(10), pages 1976-1982.
    2. Sean Archer, 2007. "The International Literature on Skills Training and the Scope for South African Application," Working Papers 07124, University of Cape Town, Development Policy Research Unit.
    3. Giorgio Brunello & Patricia Wruuck, 2021. "Skill shortages and skill mismatch: A review of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1145-1167, September.
    4. Bruno Škrinjarić, 2022. "Competence-based approaches in organizational and individual context," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-12, December.

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