Productivity effects of organizational change: microeconometric evidence
This paper analyzes the relationship between investment in information and communication technologies (ICT), non-ICT-investment, labor productivity and workplace reorganization. Firms are assumed to reorganize workplaces if the productivity gains arising from workplace reorganization exceed the associated reorganization costs. Two different types of organizational change are considered : introduction of group-work and flattening of hierarchies. Empirical evidence is provided for a sample of 411 firms from the German business-related services sector. We develop and estimate a model for labor productivity and firms' decision to re-organize workplaces that allows workplace reorganization to affect any parameter of the labor productivity equation. Our general and flexible methodology allows to properly take account of strategic complementarities between the input factors and workplace reorganization. The estimation results show that changes in human resources practices do not significantly affect firms' output elasticities with respect to information and communication technologies (ICT), non-ICT-capital and labor although most of the point estimates of the individual output elasticities and of the control variables for observable firm heterogeneity are larger if workplace reorganization is realized. We therefore apply Kernel density estimation technique and demonstrate that for firms with organizational change the entire labor productivity distribution shifts significantly out to the right if workplace reorganization takes place, indicating that workplace reorganization induces an increase in labor productivity that is attributable to complementarities between the various input factors and workplace reorganization. By contrast, firms without organizational change would not have realized significant productivity gains if they had reorganized workplaces.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.zew.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Greenman, N. & Mairesse, J., 1996.
"Computers and Productivity in France: Some Evidence,"
Monash Econometrics and Business Statistics Working Papers
15/96, Monash University, Department of Econometrics and Business Statistics.
- Nathalie Greenana & Jacques Mairesse, 2000. "Computers And Productivity In France: Some Evidence," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(3), pages 275-315.
- Nathalie Greenan & Jacques Mairesse, 1996. "Computers and Productivity in France: Some Evidence," NBER Working Papers 5836, National Bureau of Economic Research, Inc.
- Brynjolfsson, Erik. & Hitt, Lorin M., 1994.
"Information technology as a factor of production : the role of differences among firms,"
3715-94. CCSTR ; #173., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Erik Brynjolfsson & Lorin Hitt, 1997. "Information Technology as a Factor of Production: The Role of Differences Among Firms," Working Paper Series 201, MIT Center for Coordination Science.
- S Black & L Lynch, 1997.
"How to Compete: The Impact of Workplace Practices and Information Technology on Productivity,"
CEP Discussion Papers
dp0376, Centre for Economic Performance, LSE.
- Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
- Lisa M Lynch & Sandra E Black, 2002. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," Working Papers 02-04, Center for Economic Studies, U.S. Census Bureau.
- S. Black & L. Lynch, 1997. "How to compete: the impact of workplace practices and information technology on productivity," LSE Research Online Documents on Economics 20298, London School of Economics and Political Science, LSE Library.
- Sandra E. Black & Lisa M. Lynch, 1997. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," NBER Working Papers 6120, National Bureau of Economic Research, Inc.
- Sanjeev Dewan & Chung-ki Min, 1997. "The Substitution of Information Technology for Other Factors of Production: A Firm Level Analysis," Management Science, INFORMS, vol. 43(12), pages 1660-1675, December.
- Trajtenberg, M. & Bresnahan, T.F., 1992.
"General Purpose Technologies: "Engines of Growth","
16-92, Tel Aviv.
- Kaiser, Ulrich & Kreuter, Markus & Niggemann, Hiltrud, 2000. "The ZEW - Creditreform business survey in the business-related services sector : sampling frame, stratification, expansion and results," ZEW Discussion Papers 00-22, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
- Licht, Georg & Moch, Dietmar, 1997.
"Innovation and Information Technology in Services,"
ZEW Discussion Papers
97-20, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Georg Licht & Dietmar Moch, 1999. "Innovationa and information technology in services," Canadian Journal of Economics, Canadian Economics Association, vol. 32(2), pages 363-383, April.
- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999.
"Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence,"
NBER Working Papers
7136, National Bureau of Economic Research, Inc.
- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 339-376, February.
- Erik Brynjolfsson & Lorin Hitt, 1996.
"Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending,"
INFORMS, vol. 42(4), pages 541-558, April.
- Brynjolfsson, Erik. & Hitt, Lorin M., 1995. "Paradox lost? : firm-level evidence on the returns to information systems spending," Working papers 3786-95., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Kaiser, Ulrich, 2001. "Differences in response patterns in a mixed mode: online/paper & pencil business survey," ZEW Discussion Papers 01-50, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Bertschek, Irene & Fryges, Helmut, 2002. "The Adoption of Business-to-Business E-Commerce: Empirical Evidence for German Companies," ZEW Discussion Papers 02-05, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Timothy F. Bresnahan, 1997.
"Computerization and Wage Dispersion: An Analytical Reinterpretation,"
97031, Stanford University, Department of Economics.
- Bresnahan, Timothy F, 1999. "Computerisation and Wage Dispersion: An Analytical Reinterpretation," Economic Journal, Royal Economic Society, vol. 109(456), pages F390-415, June.
- Black, Sandra E & Lynch, Lisa M, 1996. "Human-Capital Investments and Productivity," American Economic Review, American Economic Association, vol. 86(2), pages 263-67, May.
- Frank R. Lichtenberg, 1993. "The Output Contributions of Computer Equipment and Personnel: A Firm- Level Analysis," NBER Working Papers 4540, National Bureau of Economic Research, Inc.
- 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.
- Radner, Roy, 1993. "The Organization of Decentralized Information Processing," Econometrica, Econometric Society, vol. 61(5), pages 1109-46, September.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:5387. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.