Inside the Blackbox: Economic Performance and Technology Adoption when Space and Product Relationships Matter
We highlight the relevance of studying the performance of productive units by considering space and product relationships. By applying the district/no district and independent/subcontractee status taxonomy, we find that district independent firms have higher value added and are more efficient than non district independent firms, but that ICT investment improves efficiency only for the latter. Our findings suggest that: (i) the quality of space relationships (district location) positively affects unmeasured forms of human and social capital; (ii) ICT adoption has a stronger impact on non district independent firms as the improvement of electronic links is more beneficial for productive units with poorer space relationships.
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Volume (Year): 95 (2005)
Issue (Month): 1 (January-February)
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