The Distinct Effects of Information Technology and Communication Technology on Firm Organization
Nicholas Bloom (),
Luis Garicano (),
Raffaella Sadun () and
John van Reenen ()
Management Science, 2014, vol. 60, issue 12, 2859-2885
Guided by theories of “management by exception,” we study the impact of information and communication technology on worker and plant manager autonomy and span of control. The theory suggests that information technology is a decentralizing force, whereas communication technology is a centralizing force. Using a new data set of American and European manufacturing firms, we find indeed that better information technologies (enterprise resource planning (ERP) for plant managers and computer-assisted design/computer-assisted manufacturing for production workers) are associated with more autonomy and a wider span of control, whereas technologies that improve communication (like data intranets) decrease autonomy for workers and plant managers. Using instrumental variables (distance from ERP’s place of origin and heterogeneous telecommunication costs arising from regulation) strengthens our results.Data, as supplemental material, are available at http://dx.doi.org/10.1287/mnsc.2014.2013 . This paper was accepted by John List, behavioral economics .
Keywords: organization; delegation; information technology; communication technology; the theory of the firm (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link)
Working Paper: The distinct effects of Information Technology and Communication Technology on firm organization (2013)
Working Paper: The Distinct Effects of Information Technology and Communication Technology on Firm Organization (2009)
Working Paper: The distinct effects of information technology and communication technology on firm organization (2009)
Working Paper: The distinct effects of Information Technology and Communication Technology on firm organization (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:60:y:2014:i:12:p:2859-2885
Access Statistics for this article
More articles in Management Science from INFORMS Contact information at EDIRC.
Series data maintained by Mirko Janc ().