Information Technology, Organisational Change and Productivity

35 Pages Posted: 14 May 2008

See all articles by Gustavo Crespi

Gustavo Crespi

University of Chile - Department of Economics

Chiara Criscuolo

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); University of Siena - Department of Economics

Jonathan Haskel

Imperial College Business School; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Date Written: February 2007

Abstract

We examine the relationships between productivity growth, IT investment and organisational change (DO) using UK firm 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 DO is omitted; when DO is included the IT returns are greatly reduced, (b) IT and DO interact in their effect on productivity growth, (c) non-IT investment and DO do not interact in their effect on productivity growth. Some new findings are (a) DO is affected by competition; (b) US-owned firms are much more likely to introduce DO relative to foreign owned firms who are more likely still relative to UK firms; (c) our predicted measured TFP growth slowdown for firms who are not doing DO and/or are in the early stages of IT investment compare well with the macro numbers documenting a UK measured TFP growth slowdown.

Keywords: Information technology, organisational change, productivity growth

JEL Classification: D24, E22, L22, O31

Suggested Citation

Crespi, Gustavo and Criscuolo, Chiara and Haskel, Jonathan, Information Technology, Organisational Change and Productivity (February 2007). CEPR Discussion Paper No. DP6105, Available at SSRN: https://ssrn.com/abstract=1132242

Gustavo Crespi (Contact Author)

University of Chile - Department of Economics ( email )

Diagonal Paraguay 257
Torre 26, Of. 1801
Santiago
Chile
+56 2 678 3461 or 678 3463 (Phone)
+56 2 222 0775 (Fax)

Chiara Criscuolo

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

University of Siena - Department of Economics

Piazza S. Francesco 7
Siena, I-53100
Italy

Jonathan Haskel

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom
020 7594 8563 (Phone)
020 7594 5915 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
6
Abstract Views
2,770
PlumX Metrics