IDEAS home Printed from
   My bibliography  Save this article

Computer networks and productivity revisited: Does plant size matter? Evidence and implications


  • Hyatt, Henry R.

    () (U.S. Census Bureau)

  • Nguyen, Sang V.

    (U.S. Census Bureau)


Numerous studies have documented a positive association between information technology investments and business- and establishment-level productivity. Most of these studies, however, rely on empirical specifications that over-represent small businesses. In this paper, we revisit one piece of evidence, the Computer Network Use Supplement to the 1999 U.S. Annual Survey of Manufactures, which has previously been used to show that there is a positive relationship between computer networks and productivity in manufacturing plants. We show that this is only true for small- and medium-sized plants, and that for larger plants the relationship is negative. We give critical consideration to alternative methods for weighting these data, and show that employment-weighted estimates indicate the presence of a computer network has, on average, a negative relationship with the productivity of employees.

Suggested Citation

  • Hyatt, Henry R. & Nguyen, Sang V., 2014. "Computer networks and productivity revisited: Does plant size matter? Evidence and implications," Journal of Economic and Social Measurement, IOS Press, issue 1-2, pages 87-104.
  • Handle: RePEc:ris:iosjes:0014

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    1. Timothy Dunne & Lucia Foster & John Haltiwanger & Kenneth R. Troske, 2004. "Wage and Productivity Dispersion in United States Manufacturing: The Role of Computer Investment," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 397-430, April.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Emannuel Dhyne & Joep Konings & Joep Konings & Stijn Vanormelingen,, 2018. "IT and productivity: A firm level analysis," Working Paper Research 346, National Bank of Belgium.
    2. Prasanna Tambe & Lorin M. Hitt, 2012. "The Productivity of Information Technology Investments: New Evidence from IT Labor Data," Information Systems Research, INFORMS, vol. 23(3-part-1), pages 599-617, September.
    3. Dhyne, Emmanuel & Konings, Jozef & Van den bosch, Jeroen & Vanormelingen, Stijn, 2018. "The Return on Information Technology: Who Benefits Most?," CEPR Discussion Papers 13246, C.E.P.R. Discussion Papers.

    More about this item


    Computer network; productivity; size; employment; information technology; manufacturing; internet;

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:iosjes:0014. 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: (Saskia van Wijngaarden). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.