Firm Growth and Profitability:The Role of Mobile IT and Organizational Practices
This study uses a unique survey data from 398 Finnish manufacturing firms to explore how the order of magnitude of mobility and connectivity of a firms ICT stock in conjunction with various organizational innovation and HRM practices affect the firms performance. The data suggest that mobile connectivity as such does not significantly contribute to the firms growth and profitability. However, the empirical results find support for the agency theory based argument : a greater mobility associated with the use of a pertinent economic incentive scheme and a systematic performance monitoring seems to promote the firms growth. In addition, re-organization of tasks within an organization is implemented most successfully, boosting profitability, when the firms re-organization strategy incorporates the adoption of mobile, Internet-connected IT stock.
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