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Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms

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Author Info

  • Gustavo Crespi

    (University of Sussex, AIM and CeRiBA)

  • Chiara Criscuolo

    (CEP, LSE, AIM and CeRiBA)

  • Jonathan Haskel

    (Queen Mary, University of London)

Abstract

We examine the relationships between productivity growth, IT investment and organisational change (Δ O) using UK firm panel 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 Δ O is omitted; when Δ O is included the IT returns are greatly reduced, (b) IT and Δ O interact in their effect on productivity growth, (c) non-IT investment and Δ O do not interact in their effect on productivity growth. Some new findings are (a) Δ O is affected by competition and (b) we also find strong effects on the probability of introducing Δ O from ownership. US-owned firms are much more likely to introduce Δ O relative to foreign owned firms who are more likely still relative to UK firms.

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Bibliographic Info

Paper provided by Queen Mary, University of London, School of Economics and Finance in its series Working Papers with number 558.

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Date of creation: Apr 2006
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Handle: RePEc:qmw:qmwecw:wp558

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Keywords: Information technology; Productivity growth; Organisational change;

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References

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Citations

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Cited by:
  1. repec:cge:warwcg:70 is not listed on IDEAS
  2. Crafts, Nicholas, 2012. "British relative economic decline revisited: The role of competition," Explorations in Economic History, Elsevier, vol. 49(1), pages 17-29.
  3. repec:cge:warwcg:42 is not listed on IDEAS
  4. Polder, Michael & Leeuwen, George van & Mohnen, Pierre & Raymond, Wladimir, 2009. "Productivity effects of innovation modes," MPRA Paper 18893, University Library of Munich, Germany.
  5. Jacques Mairesse & Pierre Mohnen, 2010. "Using Innovation Surveys for Econometric Analysis," CIRANO Working Papers 2010s-15, CIRANO.
  6. Cassiman, Bruno & Golovko, Elena & Martínez-Ros, Ester, 2010. "Innovation, exports and productivity," International Journal of Industrial Organization, Elsevier, vol. 28(4), pages 372-376, July.
  7. Crafts, Nicholas, 2011. "British Relative Economic Decline Revisited," CEPR Discussion Papers 8384, C.E.P.R. Discussion Papers.
  8. Benjamin David, 2012. "Modélisation non-linéaire de l'impact des TIC sur la productivité du travail," EconomiX Working Papers 2012-51, University of Paris West - Nanterre la Défense, EconomiX.
  9. Arvanitis, Spyros & Loukis, Euripidis N., 2009. "Information and communication technologies, human capital, workplace organization and labour productivity: A comparative study based on firm-level data for Greece and Switzerland," Information Economics and Policy, Elsevier, vol. 21(1), pages 43-61, February.
  10. Polder, Michael & Van Leeuwen, George & Mohnen, Pierre & Raymond, Wladimir, 2010. "Product, process and organizational innovation: drivers, complementarity, and productivity effects," MPRA Paper 23719, University Library of Munich, Germany.
  11. Spyros Arvanitis & Euripidis N. Loukis & Vasiliki Diamantopoulou, 2013. "Are ICT, Workplace Organization and Human Capital Relevant for Innovation? A Comparative Study Based on Swiss and Greek Micro Data," KOF Working papers 13-333, KOF Swiss Economic Institute, ETH Zurich.
  12. López, Alberto, 2012. "Productivity effects of ICTs and organizational change: A test of the complementarity hypothesis in Spain," MPRA Paper 40400, University Library of Munich, Germany.
  13. O'Mahony, Mary & Peng, Fei, 2009. "Skill bias, age and organizational change," MPRA Paper 38767, University Library of Munich, Germany.
  14. repec:cge:warwcg:90 is not listed on IDEAS

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