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

Gustavo Crespi (), Chiara Criscuolo () and Jonathan 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 (2007) Downloads
Working Paper: Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms (2006) Downloads
Working Paper: Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms (2006) Downloads
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