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Information Technology Use and Productivity at the Individual Level

Neil Gandal, Charles King and Marshall Van Alstyne

No 6260, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We employ a unique data set on white-collar workers that combines direct observations of individual use of information technology as well as objective information on individual performance. The main hypothesis we examine is whether heavier users of IT are more productive, and if heavier users of IT are indeed more productive, how does this increase in productivity manifest itself? Our results suggest that, controlling for other factors, the size of an individual?s internal email network is more highly correlated with revenues generated by that individual than age, experience or education. Further, the number of unique electronic contacts is more significant than the number of messages, external network size, and all other measures of email communication including declared time spent on email. Additionally, even after accounting for the individual?s number of unique contacts within the firm, the social network measure of ?betweenness? is also highly correlated with revenues. We attribute the strength of these results to the fine grain detail of the data on this form of task-based white collar work.

Keywords: Information technology; Productivity; Social Networks (search for similar items in EconPapers)
JEL-codes: J24 L86 O14 (search for similar items in EconPapers)
Date: 2007-04
New Economics Papers: this item is included in nep-eff, nep-ict, nep-ino and nep-net
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