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Impact of computerization on firm performance: a case of Shanghai manufacturing enterprises

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  • Y C Ng

    (Hong Kong Baptist University, Kowloon)

  • M K Chang

    (Hong Kong Baptist University, Kowloon)

Abstract

The impact of computer-related input on firm productivity is not well understood in the developing world, including China. The present study contributes to this area by analyzing data collected from a sample of Shanghai manufacturing enterprises. Adopting a Cobb–Douglas production function, we find a positive relationship between computer personnel and enterprise output. The efficiency of enterprises, however, was shown to be generally low according to data envelopment analysis. The level of computerization was shown to make a positive contribution to improving efficiency in non-state-owned enterprises in both heavy and light industries. This was also shown to be the case for state-owned enterprises in heavy industry.

Suggested Citation

  • Y C Ng & M K Chang, 2003. "Impact of computerization on firm performance: a case of Shanghai manufacturing enterprises," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(10), pages 1029-1037, October.
    • Handle: RePEc:pal:jorsoc:v:54:y:2003:i:10:d:10.1057_palgrave.jors.2601609
    DOI: 10.1057/palgrave.jors.2601609
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    3. Wang, John & Yan, Ruiliang & Hollister, Kimberly & Zhu, Dan, 2008. "A historic review of management science research in China," Omega, Elsevier, vol. 36(6), pages 919-932, December.
    4. Chang, Young-Tae & Zhang, Ning & Danao, Denise & Zhang, Nan, 2013. "Environmental efficiency analysis of transportation system in China: A non-radial DEA approach," Energy Policy, Elsevier, vol. 58(C), pages 277-283.
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    6. Bian, Yiwen & Yang, Feng, 2010. "Resource and environment efficiency analysis of provinces in China: A DEA approach based on Shannon's entropy," Energy Policy, Elsevier, vol. 38(4), pages 1909-1917, April.
    7. Elsadig Ahmed & Rahim Ridzuan, 2013. "The Impact of ICT on East Asian Economic Growth: Panel Estimation Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 4(4), pages 540-555, December.
    8. Yaisawarng, Suthathip & Ng, Ying Chu, 2014. "The impact of higher education reform on research performance of Chinese universities," China Economic Review, Elsevier, vol. 31(C), pages 94-105.
    9. Jain, Sanjay & Triantis, Konstantinos P. & Liu, Shiyong, 2011. "Manufacturing performance measurement and target setting: A data envelopment analysis approach," European Journal of Operational Research, Elsevier, vol. 214(3), pages 616-626, November.
    10. H Seol & H Lee & S Kim & Y Park, 2008. "The impact of information technology on organizational efficiency in public services: a DEA-based DT approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(2), pages 231-238, February.
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