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New Technology, Work Organisation, And Innovation

Author

Listed:
  • Thomas Hempell
  • Thomas Zwick

Abstract

While a positive link between information and communication technology (ICT) and firm performance is well documented, the exact channel remains unclear. We propose an innovative link: ICT fosters product and process innovations by facilitating employee participation and outsourcing. Employee participation is enhanced by horizontal employee communication and ICT training, whereas outsourcing is spurred by easier communication between firms and costs savings. Our results from a large and representative data set of firms in Germany show that ICT use is associated with an increase in both types of flexibility, accordingly. The implications for innovation activities differ, however, employee participation is strongly positively associated with product and process innovations. In contrast, outsourcing allows firms to 'buy' innovations in the short run, but reduces innovative capacity in the long run.

Suggested Citation

  • Thomas Hempell & Thomas Zwick, 2008. "New Technology, Work Organisation, And Innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(4), pages 331-354.
  • Handle: RePEc:taf:ecinnt:v:17:y:2008:i:4:p:331-354
    DOI: 10.1080/10438590701279649
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    References listed on IDEAS

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    1. Janz, Norbert & Ebling, Günther & Gottschalk, Sandra & Peters, Bettina & Schmidt, Tobias, 2002. "Innovationsverhalten der deutschen Wirtschaft: Indikatorenbericht zur Innovationserhebung 2001," The Annual German Innovation Survey, Key Figures Reports 111699, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Gottschalk, Sandra & Janz, Norbert & Peters, Bettina & Rammer, Christian & Schmidt, Tobias, 2002. "Innovationsverhalten der deutschen Wirtschaft: Hintergrundbericht zur Innovationserhebung 2001," ZEW Dokumentationen 02-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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    Citations

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    Cited by:

    1. Luigi Benfratello & Tiziano Razzolini & Alessandro Sembenelli, 2009. "Does ICT Investment Spur or Hamper Offshoring? Empirical Evidence from Microdata," Working papers 05, Former Department of Economics and Public Finance "G. Prato", University of Torino.
    2. Spyros Arvanitis & Euripidis N. Loukis & Vasiliki Diamantopoulou, 2013. "Are ICT, Workplace Organization and Human Capital Relevant for Innovation?," KOF Working papers 13-333, KOF Swiss Economic Institute, ETH Zurich.
    3. Antonelli, Cristiano, 2017. "Digital Knowledge Generation and the Appropriability Trade-Off," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201705, University of Turin.
    4. repec:iab:iabzaf:v:41:i:2/3:p:245-258 is not listed on IDEAS
    5. Spyros Arvanitis & Florian Seliger & Tobias Stucki, 2013. "The Relative Importance of Human Resource Management Practices for a Firm's Innovation Performance," KOF Working papers 13-341, KOF Swiss Economic Institute, ETH Zurich.
    6. repec:spr:jknowl:v:8:y:2017:i:2:d:10.1007_s13132-016-0441-1 is not listed on IDEAS
    7. O’Mahony, Mary & Peng, Fei, 2011. "Intangible training capital and productivity in Europe," MPRA Paper 38648, University Library of Munich, Germany.
    8. Engelstätter, Benjamin, 2009. "Enterprise systems and innovations," ZEW Discussion Papers 09-086, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    9. repec:tur:wpaper:5 is not listed on IDEAS
    10. repec:spr:infosf:v:17:y:2015:i:3:d:10.1007_s10796-014-9506-5 is not listed on IDEAS

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