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Information Technology, Organisational Change and Productivity

Gustavo Crespi (), Chiara Criscuolo () and Jonathan Haskel ()

No 6105, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We examine the relationships between productivity growth, IT investment and organisational change (DO) 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 DO is omitted; when DO is included the IT returns are greatly reduced, (b) IT and DO interact in their effect on productivity growth, (c) non-IT investment and DO do not interact in their effect on productivity growth. Some new findings are (a) DO is affected by competition; (b) US-owned firms are much more likely to introduce DO 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 DO 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; organisational change; productivity growth (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-cse, nep-eff, nep-ino, nep-mac and nep-tid
Date: 2007-02
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