Information technology, organisational change and productivity growth: evidence from UK firms

Gustavo Crespi, Chiara Criscuolo and Jonathan Haskel ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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)
Pages: 35 pages
Date: 2007-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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http://eprints.lse.ac.uk/19748/ Open access version. (application/pdf)

Related works:
Working Paper: Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms (2007)
Working Paper: Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:19748

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