EconPapers    
Economics at your fingertips  
 

The Distinct Effects of Information Technology and Communication Technology on Firm Organization

Nicholas Bloom (), Luis Garicano (), Raffaella Sadun () and John van Reenen ()

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: Guided by theories of management by exception, we study the impact of Information and Communication Technology on worker and plant manager autonomy and on span of control. We find, using an original dataset of American and European manufacturing firms, that better information technologies (Enterprise Resource Planning for plant managers and CAD/CAM for production workers) are associated with more autonomy and a wider span, while technologies that improve communication (like data intranets) decrease autonomy for workers and plant managers, consistently with the theory. Using instrumental variables (distance from ERP's birthplace and heterogeneous telecommunication costs arising from regulation) strengthens our results.

Keywords: organization; delegation; information technology; communication technology; the theory of the firm (search for similar items in EconPapers)
JEL-codes: O31 O32 O33 F23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-knm
Date: 2009-05
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (40) Track citations by RSS feed

Downloads: (external link)
http://cep.lse.ac.uk/pubs/download/dp0927.pdf (application/pdf)

Related works:
Journal Article: The Distinct Effects of Information Technology and Communication Technology on Firm Organization (2014) Downloads
Working Paper: The distinct effects of Information Technology and Communication Technology on firm organization (2013) Downloads
Working Paper: The distinct effects of information technology and communication technology on firm organization (2009) Downloads
Working Paper: The distinct effects of Information Technology and Communication Technology on firm organization (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0927

Access Statistics for this paper

More papers in CEP Discussion Papers from Centre for Economic Performance, LSE
Series data maintained by ().

 
Page updated 2017-10-06
Handle: RePEc:cep:cepdps:dp0927