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Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms

Author

Listed:
  • Gustavo Crespi

    (University of Sussex, AIM and CeRiBA)

  • Chiara Criscuolo

    (CEP, LSE, AIM and CeRiBA)

  • Jonathan Haskel

    (Queen Mary, University of London)

Abstract

We examine the relationships between productivity growth, IT investment and organisational change (Δ O ) using UK firm panel data. Consistent with the small number of other micro studies we find (a) IT appears to have high returns in a growth accounting sense when Δ O is omitted; when Δ O is included the IT returns are greatly reduced, (b) IT and Δ O interact in their effect on productivity growth, (c) non-IT investment and Δ O do not interact in their effect on productivity growth. Some new findings are (a) Δ O is affected by competition and (b) we also find strong effects on the probability of introducing Δ O from ownership. US-owned firms are much more likely to introduce Δ O relative to foreign owned firms who are more likely still relative to UK firms.

Suggested Citation

  • Gustavo Crespi & Chiara Criscuolo & Jonathan Haskel, 2006. "Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms," Working Papers 558, Queen Mary University of London, School of Economics and Finance.
  • Handle: RePEc:qmw:qmwecw:wp558
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    References listed on IDEAS

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    Cited by:

    1. Marina Rybalka, 2015. "The innovative input mix. Assessing the importance of R&D and ICT investments for firm performance in manufacturing and services," Discussion Papers 801, Statistics Norway, Research Department.
    2. Adel Ben youssef & Walid Hadhri & Hatem Mhenni, 2014. "Adoption of Information and Communication Technologies and New Organizational Practices in the Tunisian Manufacturing Sector," Economics Bulletin, AccessEcon, vol. 34(4), pages 2237-2252.
    3. Michael Polder & George van Leeuwen & Pierre Mohnen & Wladimir Raymond, 2010. "Product, Process and Organizational Innovation: Drivers, Complementarity and Productivity Effects," DRUID Working Papers 10-24, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    4. Pierre Mohnen & Bronwyn Hall, 2013. "Innovation and Productivity: An Update," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 47-65, June.
    5. Benjamin David, 2012. "Modélisation non-linéaire de l'impact des TIC sur la productivité du travail," EconomiX Working Papers 2012-51, University of Paris Nanterre, EconomiX.
    6. Mairesse, Jacques & Mohnen, Pierre, 2010. "Using Innovation Surveys for Econometric Analysis," Handbook of the Economics of Innovation, Elsevier.
    7. López, Alberto, 2012. "Productivity effects of ICTs and organizational change: A test of the complementarity hypothesis in Spain," MPRA Paper 40400, University Library of Munich, Germany.
    8. Vergara, Sebastián, 2013. "The performance of transnational corporations: Evidence for the manufacturing industry in Chile," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    9. Cassiman, Bruno & Golovko, Elena & Martínez-Ros, Ester, 2010. "Innovation, exports and productivity," International Journal of Industrial Organization, Elsevier, vol. 28(4), pages 372-376, July.
    10. Crafts, Nicholas, 2011. "British Relative Economic Decline Revisited," CEPR Discussion Papers 8384, C.E.P.R. Discussion Papers.
    11. Timothy De Stefano & Richard Kneller & Jonathan Timmis, 2014. "The (Fuzzy) Digital Divide: The Effect of Broadband Internet Use on UK Firm Performance," Discussion Papers 14/06, University of Nottingham, School of Economics.
    12. Mohamed Kossaï & Patrick Piget, 2012. "Utilisation des technologies de l'information et des communications (TIC) et performance économique des PME Tunisiennes :une étude économétrique," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(3), pages 305-328.
    13. repec:taf:ijecbs:v:23:y:2016:i:3:p:319-349 is not listed on IDEAS
    14. 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.
    15. Federico Bernini & Lucas Figal Garone & Alessandro Maffioli, 2017. "Certificación internacional de calidad: ¿Señalizando a quién?: Impacto en el desempeño de empresas en Argentina," IDB Publications (Working Papers) 97438, Inter-American Development Bank.
    16. Arvanitis, Spyros & Loukis, Euripidis N., 2009. "Information and communication technologies, human capital, workplace organization and labour productivity: A comparative study based on firm-level data for Greece and Switzerland," Information Economics and Policy, Elsevier, vol. 21(1), pages 43-61, February.
    17. repec:bla:revinw:v:62:y:2016:i:4:p:724-757 is not listed on IDEAS
    18. Crafts, Nicholas, 2012. "British relative economic decline revisited: The role of competition," Explorations in Economic History, Elsevier, vol. 49(1), pages 17-29.
    19. O'Mahony, Mary & Peng, Fei, 2009. "Skill bias, age and organizational change," MPRA Paper 38767, University Library of Munich, Germany.
    20. Polder, Michael & Leeuwen, George van & Mohnen, Pierre & Raymond, Wladimir, 2009. "Productivity effects of innovation modes," MPRA Paper 18893, University Library of Munich, Germany.

    More about this item

    Keywords

    Information technology; Productivity growth; Organisational change;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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