ICT, Skills, and Organizational Change: Evidence from Italian Manufacturing Firms

Abstract

This article examines the complementarity among information and communication technologies (ICT), skills, and organizational change from a panel of 680 Italian manufacturing firms during 1995–2003. By drawing on different statistical methods, we found evidence of complementarity between skills and organizational change, but did not find evidence of complementarity between ICT and skills. Moreover, our results show that the hypothesis of full complementarity among ICT, human capital, and organizational change does not apply to small and medium firms. Instead, we discovered that organizational change yields negative effects on the complementarity between ICT and human capital.