Information and Communication Technology, Hierarchy, and Job Design

Elisa Gerten (), Michael Beckmann (), Elisa Gerten () and Matthias Kräkel
Additional contact information
Elisa Gerten: Faculty of Management, Economics and Social Sciences, University of Cologne, Albertus-Magnus-Platz, D-50923 Cologne, Germany
Michael Beckmann: Faculty of Business and Economics, University of Basel, Peter Merian-Weg 6, CH-4002 Basel, Switzerland; Institute for Employment Research (IAB), Nuremberg, Germany; IZA Institute of Labor Economics, Bonn,Germany;
Elisa Gerten: Faculty of Management, Economics and Social Sciences, University of Cologne, Albertus-Magnus-Platz, D-50923 Cologne, Germany

No 189, ECONtribute Discussion Papers Series from University of Bonn and University of Cologne, Germany

Abstract: In recent decades, information and communication technology (ICT) has been associated with far-reaching changes in the design of jobs. However, it still remains unclear whether these changes will lead to more centralization or more decentralization in firms. Previous literature on this debate has focused on a strict dichotomy between the two possible directions. In contrast, our theoretical and empirical analyses show that equipping employees with ICT leads to both more centralized and more decentralized job-design policies. This finding is particularly pronounced for executive employees, who are granted more work autonomy but also experience more control via stronger monitoring, while non-executive employees only experience more monitoring without receiving more work autonomy. Our theoretical setting is based on a modified principal-agent model. In our empirical approach we apply estimation models that account for both endogeneity and essential heterogeneity, thereby exploiting exogenous geographic variation in our instrumental variable.

Keywords: information and communication technology; centralization; decentralization; monitoring; working from home; marginal treatment effects; essential heterogeneity; instrumental variable (search for similar items in EconPapers)
JEL-codes: D2 D86 J3 M1 M5 (search for similar items in EconPapers)
Pages: pages
Date: 2022-08
New Economics Papers: this item is included in nep-hrm, nep-ict and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_189_2022.pdf First version, 2022 (application/pdf)

Related works:
Working Paper: Information and Communication Technology, Hierarchy, and Job Design (2022)
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