Firm Growth and Profitability:The Role of Mobile IT and Organizational Practices

Heli Koski

No 1222, Discussion Papers from The Research Institute of the Finnish Economy

Abstract: 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.

Keywords: ICT use; mobility; connectivity; organizational practices; firm performance (search for similar items in EconPapers)
JEL-codes: L25 M52 M54 O33 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2010
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff and nep-ict
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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