Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms

Gustavo A. Crespi (), Chiara Criscuolo () and Jonathan E. Haskel ()

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We examine the relationships between productivity growth, IT investment and organisational change (∆O) 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 ∆O is omitted; when ∆O is included the IT returns are greatly reduced, (b) IT and ∆O interact in their effect on productivity growth, (c) non-IT investment and ∆O do not interact in their effect on productivity growth. Some new findings are (a) ∆O is affected by competition; (b) US-owned firms are much more likely to introduce ∆O 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 ∆O 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; productivity growth; organisational change (search for similar items in EconPapers)
JEL-codes: D24 E22 L22 O31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-eff, nep-ino and nep-mac
Date: 2007-03
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Working Paper: Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:cep:cepdps:dp0783

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