The effects of new technologies on productivity: An intrafirm diffusion-based assessment
This paper studies the impact of new technologies on productivity from the perspective of the technological diffusion literature. We argue that several stylised facts about the intrafirm diffusion process are not taken into account in most current research, which results in potentially erroneous conclusions. We critically assess different approaches that have been taken when studying the effects of technology adoption on productivity, and relate them to the main findings of the literature on technology diffusion with the aim of identifying the advantages of an intrafirm diffusion approach. We then conduct an empirical analysis on a sample that describes the diffusion of an innovation - the Automated Teller Machine - among Spanish savings banks from 1986 to 2004 in both its extensive (interfirm) and intensive (intrafirm) dimensions. Our results show that only the consideration of the intrafirm diffusion process is able to account for the contribution of the technology to productivity.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stoneman, Paul & Kwon, Myung Joong, 1996. "Technology Adoption and Firm Profitability," Economic Journal, Royal Economic Society, vol. 106(437), pages 952-962, July.
- Kleibergen, Frank & Paap, Richard, 2006.
"Generalized reduced rank tests using the singular value decomposition,"
Journal of Econometrics,
Elsevier, vol. 133(1), pages 97-126, July.
- Frank Kleibergen & Richard Paap, 2003. "Generalized Reduced Rank Tests using the Singular Value Decomposition," Tinbergen Institute Discussion Papers 03-003/4, Tinbergen Institute.
- Richard Paap & Frank Kleibergen, 2004. "Generalized Reduced Rank Tests using the Singular Value Decomposition," Econometric Society 2004 Australasian Meetings 195, Econometric Society.
- Kleibergen, F.R. & Paap, R., 2003. "Generalized Reduced Rank Tests using the Singular Value Decomposition," Econometric Institute Research Papers EI 2003-01, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
- Massini, Silvia & Lewin, Arie Y. & Greve, Henrich R., 2005. "Innovators and imitators: Organizational reference groups and adoption of organizational routines," Research Policy, Elsevier, vol. 34(10), pages 1550-1569, December.
- Goddard, John & Molyneux, Philip & Wilson, John O.S. & Tavakoli, Manouche, 2007. "European banking: An overview," Journal of Banking & Finance, Elsevier, vol. 31(7), pages 1911-1935, July.
- Tyre, Marcie J., 1991. "Managing the introduction of new process technology: International differences in a multi-plant network," Research Policy, Elsevier, vol. 20(1), pages 57-76, February.
- Sunil Sharma, 1992. "Behind the Diffusion Curve: An Analysis of ATM Adoption," UCLA Economics Working Papers 686, UCLA Department of Economics.
- Battisti, Giuliana & Stoneman, Paul, 2005. "The intra-firm diffusion of new process technologies," International Journal of Industrial Organization, Elsevier, vol. 23(1-2), pages 1-22, February.
- Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 22(4), pages 483-498, Winter.
- Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity across Four European Countries," NBER Working Papers 12722, National Bureau of Economic Research, Inc.
- Hannan, Timothy H & McDowell, John M, 1990. "The Impact of Technology Adoption on Market Structure," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 164-168, February.
- Timothy H. Hannan & John M. McDowell, 1989. "The impact of technology adoption on market structure," Finance and Economics Discussion Series 73, Board of Governors of the Federal Reserve System (U.S.).
- Stoneman, P, 1981. "Intra-Firm Diffusion, Bayesian Learning and Profitability," Economic Journal, Royal Economic Society, vol. 91(362), pages 375-388, June.
- Fuentelsaz, Lucio & Gomez, Jaime & Polo, Yolanda, 2003. "Intrafirm diffusion of new technologies: an empirical application," Research Policy, Elsevier, vol. 32(4), pages 533-551, April.
- Battisti, Giuliana & Stoneman, Paul, 2003. "Inter- and intra-firm effects in the diffusion of new process technology," Research Policy, Elsevier, vol. 32(9), pages 1641-1655, October.
- Roller, Lars-Hendrik & Sinclair-Desgagne, Bernard, 1996. "On the heterogeneity of firms," European Economic Review, Elsevier, vol. 40(3-5), pages 531-539, April.
- Thomas Astebro, 2004. "Sunk Costs and the Depth and Probability of Technology Adoption," Journal of Industrial Economics, Wiley Blackwell, vol. 52(3), pages 381-399, 09.
- Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April.
- Geroski, Paul A, 1999. "Models of Technology Diffusion," CEPR Discussion Papers 2146, C.E.P.R. Discussion Papers.
- Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
- Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
- Dosi, Giovanni, 1982. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 11(3), pages 147-162, June.
- Gourlay, Adrian & Pentecost, Eric, 2002. "The Determinants of Technology Diffusion: Evidence from the UK Financial Sector," Manchester School, University of Manchester, vol. 70(2), pages 185-203, March.
- Randolph B. Cooper & Robert W. Zmud, 1990. "Information Technology Implementation Research: A Technological Diffusion Approach," Management Science, INFORMS, vol. 36(2), pages 123-139, February.
- E. Grifell-Tatjé & C. A. K. Lovell, 1999. "Profits and Productivity," Management Science, INFORMS, vol. 45(9), pages 1177-1193, September.
- C. A. Knox Lovell & E. Grifell-Tatjé, 1996. "Profits and Productivity," Center for Financial Institutions Working Papers 97-18, Wharton School Center for Financial Institutions, University of Pennsylvania.
- Haynes, Michelle & Thompson, Steve, 2000. " The Productivity Impact of IT Deployment: An Empirical Evaluation of ATM Introduction," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(5), pages 607-619, December.
- Leonard-Barton, Dorothy, 1988. "Implementation as mutual adaptation of technology and organization," Research Policy, Elsevier, vol. 17(5), pages 251-267, October.
- Erik Brynjolfsson & Lorin Hitt, 1996. "Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending," Management Science, INFORMS, vol. 42(4), pages 541-558, April.
- Brynjolfsson, Erik. & Hitt, Lorin M., 1995. "Paradox lost? : firm-level evidence on the returns to information systems spending," Working papers 3786-95., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Sealey, Calvin W, Jr & Lindley, James T, 1977. "Inputs, Outputs, and a Theory of Production and Cost at Depository Financial Institutions," Journal of Finance, American Finance Association, vol. 32(4), pages 1251-1266, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:38:y:2009:i:7:p:1172-1180. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.