Firm Growth and Profitability:The Role of Mobile IT and Organizational Practices
AbstractThis study uses a unique survey data from 398 Finnish manufacturing firms to explore how the order of magnitude of mobility and connectivity of a firms ICT stock in conjunction with various organizational innovation and HRM practices affect the firms performance. The data suggest that mobile connectivity as such does not significantly contribute to the firms growth and profitability. However, the empirical results find support for the agency theory based argument : a greater mobility associated with the use of a pertinent economic incentive scheme and a systematic performance monitoring seems to promote the firms growth. In addition, re-organization of tasks within an organization is implemented most successfully, boosting profitability, when the firms re-organization strategy incorporates the adoption of mobile, Internet-connected IT stock.
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Bibliographic InfoPaper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1222.
Length: 22 pages
Date of creation: 2010
Date of revision:
Find related papers by JEL classification:
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
- M54 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Labor Management
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-09 (All new papers)
- NEP-BEC-2010-10-09 (Business Economics)
- NEP-CSE-2010-10-09 (Economics of Strategic Management)
- NEP-EFF-2010-10-09 (Efficiency & Productivity)
- NEP-ICT-2010-10-09 (Information & Communication Technologies)
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