Working Paper: CEPR ID: DP6105
Authors: Gustavo Crespi; Chiara Criscuolo; Jonathan Haskel
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
JEL Codes: D24; E22; L22; O31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| IT (L86) | productivity growth (O49) |
| organizational change (L29) | productivity growth (O49) |
| IT and organizational change (O30) | productivity growth (O49) |
| competition (L13) | organizational change (L29) |
| US-owned firms (F23) | organizational change (L29) |
| foreign-owned firms (F23) | organizational change (L29) |
| organizational change and IT investment (O30) | TFP growth slowdown (O49) |