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ICT, innovation, and firm productivity: New evidence from small local firms

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  • Díaz-Chao, Ángel
  • Sainz-González, Jorge
  • Torrent-Sellens, Joan

Abstract

This study analyzes new co-innovative sources of labor productivity (i.e., ICT use, human capital and training, and new forms of work organization) in small firms that produce for local markets. The study presents an application of structural equation modeling (SEM) to 2009 survey data for a representative sample of 464 SMEs in the province of Girona (Spain). Results show that wage is the main determinant of labor productivity. Furthermore, in contrast to evidence regarding larger firms, co-innovation does not directly affect small local firms' productivity. The study establishes an indirect relationship between co-innovation and productivity in firms that initiate international expansion. The study also identifies guidelines for public policy to improve productivity in small local firms.

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  • Díaz-Chao, Ángel & Sainz-González, Jorge & Torrent-Sellens, Joan, 2015. "ICT, innovation, and firm productivity: New evidence from small local firms," Journal of Business Research, Elsevier, vol. 68(7), pages 1439-1444.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:7:p:1439-1444
    DOI: 10.1016/j.jbusres.2015.01.030
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    15. Navyashree G. R. & Savita Bhat, 2016. "ICT Investments and Growth of Small and Medium Firms: A Study of Food Processing Industry in India," Working Papers id:11306, eSocialSciences.
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    21. Orji Anthony & Ogbuabor Jonathan E. & Anthony-Orji Onyinye I. & Okoro Chinonso & Osondu Daniel, 2020. "Analysis of ICT, Power Supply and Human Capital Development in Nigeria as an Emerging Market Economy," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(4), pages 55-68, December.
    22. Beynon, Malcolm & Jones, Paul & Pickernell, David, 2016. "Country-level investigation of innovation investment in manufacturing: Paired fsQCA of two models," Journal of Business Research, Elsevier, vol. 69(11), pages 5401-5407.
    23. Scuotto, Veronica & Garcia-Perez, Alexeis & Nespoli, Chiara & Messeni Petruzzelli, Antonio, 2020. "A repositioning organizational knowledge dynamics by functional upgrading and downgrading strategy in global value chain," Journal of International Management, Elsevier, vol. 26(4).
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    25. Marinella Boccia & Anna Maria Ferragina & Stefano Iandolo, 2022. "Follow the cloud! The impact of ICT on Italian provinces’ trade," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(4), pages 667-690, December.

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