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Organizational Redesign, Information Technologies and Workplace Productivity

Using a large longitudinal, nationally representative workplace-level dataset, we explore the productivity gains associated with computer use and organizational redesign. The empirical strategy involves the estimation of a production function, augmented to account for technology use and organizational design, correcting for unobserved heterogeneity. We find large returns associated with computer use. We also find that computer use and organizational redesign may be complements or substitutes in production, and that the productivity gains associated with organizational redesign are industry-specific.

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File URL: http://www.hec.ca/iea/cahiers/2008/iea0806_bdostie.pdf
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Paper provided by HEC Montréal, Institut d'économie appliquée in its series Cahiers de recherche with number 08-06.

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Length: 44 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:iea:carech:0806
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  1. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
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  27. Joel Cutcher-Gershenfeld, 1991. "The Impact on Economic Performance of a Transformation in Workplace Relations," ILR Review, Cornell University, ILR School, vol. 44(2), pages 241-260, January.
  28. Hammer, Michael & Champy, James, 1993. "Reengineering the corporation: A manifesto for business revolution," Business Horizons, Elsevier, vol. 36(5), pages 90-91.
  29. Meagher, Kieron J., 2003. "Generalizing incentives and loss of control in an optimal hierarchy: the role of information technology," Economics Letters, Elsevier, vol. 78(2), pages 273-280, February.
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