Americans Do I.T. Better: US Multinationals and the Productivity Miracle

Bloom, Nicholas; Sadun, Raffaella; Reenen, John Van

doi:10.3386/w13085

Cited by 121 publications

(133 citation statements)

References 13 publications

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“…The conclusions from growth accounting now receive confirmation from micro studies: see e.g. Brynjolfsson et al (2002), Brynjolfsson and Hitt (2003), Bloom et al (2007), and Draca et al (2006).…”

Section: The Importance Of Ictmentioning

confidence: 59%

Long term implications of the ICT revolution: Applying the lessons of growth theory and growth accounting

Oulton

2012

Economic Modelling

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How big a boost to long run growth can countries expect from the ICT revolution? I use the results of growth accounting and the insights from a two-sector growth model to answer this question. The use of a two-sector rather than a one-sector model is required because of the very rapid rate at which the prices of ICT products have fallen in the past and are expected to fall in the future. According to the two-sector model, the main boost to growth comes from ICT use, not ICT production. Even a country which has zero ICT production can benefit via improving terms of trade. In the long run, the falling relative price of ICT products boosts the growth of GDP and consumption by inducing faster accumulation of ICT capital. I quantify this effect on the long run growth rate of 15 European and 4 non-European countries, using data from the EU KLEMS database. The ICT intensity of production (the ICT income share) is much lower in many European countries than it is in the United States or Sweden. Nevertheless the contribution to the long run growth of labour productivity stemming from even the current levels of ICT intensity is substantial: about half a percent per annum on average in the countries studied here. Eventually, the ICT revolution may diffuse more widely so ICT intensity may reach at least the same level as currently in the U.S. or Sweden, which would add a further 0.2 percentage points per annum to long run growth.

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Section: The Importance Of Ictmentioning

confidence: 59%

Long term implications of the ICT revolution: Applying the lessons of growth theory and growth accounting

Oulton

2012

Economic Modelling

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“…However, substantial variation exists in the returns to IT across firms (Brynjolfsson and Hitt 1995). A leading explanation for this variation is that firms with higher returns also adopt complementary organizational practices that produce productivity and performance premiums (Bresnahan, Brynjolfsson and Hitt, 2002;Caroli and Van Reenen 2002;Aral and Weill 2007;Bloom, Sadun and Van Reenen 2008). For instance, financial markets disproportionately reward firms that invest in IT when they have also made appropriate organizational investments (Brynjolfsson, Hitt, and Yang, 2002).…”

Section: Information Technology and Organizational Complementaritiesmentioning

confidence: 99%

“…With a highly skilled workforce that can efficiently use information technology, firms can achieve higher productivity through increased efficiency and customization as line workers are empowered with more decision rights (Bresnahan, Brynjolfsson and Hitt 2002;Caroli and Van Reenen 2002). Furthermore, IT and organizational investments such as those in innovative people management practices can help explain why the US experienced sustained increases in productivity growth in the last decade while Europe has not (Bloom, Sadun and Van Reenen 2008).…”

Section: Information Technology and Organizational Complementaritiesmentioning

confidence: 99%

Three-Way Complementarities: Performance Pay, Human Resource Analytics, and Information Technology

2012

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We test for three-way complementarities among information technology (IT), performance pay, and HR analytics practices. We develop a principal-agent model examining how these practices work together as an incentive system that produces a larger productivity premium when the practices are implemented in concert rather than separately. We assess our model by combining fine-grained data on Human Capital Management (HCM) software adoption over 11 years with detailed survey data on incentive systems and HR analytics practices for 189 firms. We find that the adoption of HCM software is greatest in firms that have also adopted performance pay and HR analytics practices. Furthermore, HCM adoption is associated with a large productivity premium when it is implemented as a system of organizational incentives, but has less benefit when adopted in isolation. The system of three-way complements produces disproportionately greater benefits than pairwise interactions, highlighting the importance of including all three complements. Productivity increases significantly when the HCM systems "go live" but not when they are purchased, which can be years earlier. This helps rule out reverse causality as an explanation for our findings.

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“…Today information technology (IT) has been able to assist companies in improving operations and more productive Hitt, 1996, 2003;Bloom et al, 2012). On the other hand some researchers have found that IT it weakens the natural value of an IT that are innovative (Hobijn and Jovanovic, 2001;Gârleanu et al, 2012a, b;Bartelsman, 2013;Papanikolaou, 2013, 2014).…”

Section: Introductionmentioning

confidence: 99%

Information Technology Implementation on Socialization of Harmonious Culture in Bali

Astawa¹,

Susyarini²,

Triyuni³

2016

MATEC Web of Conferences

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The research objective is to build a model of information delivery harmonious culture that is run by Village Credit Institutions (LPD) through information technology to rural communities so that financial performance can be improved. Thirty-five rural credit institutions which meet the criteria were used empirically as a sample. Data such as the practice of cultural values harmony collected through in-depth interviews were then analyzed using descriptive method and ethnomethodology. The model is built starting with the collection of data from each row, perform data classification into three categories of cultural harmony, making a website that contains information on the activities of cultural harmony, then mounting internet in each row to facilitate public access to information on the implementation of cultural harmony. Results of model simulations for three months showed that the level of community participation increased by an average of five percent through credit lending and credit issues decreased by 3.5 percent. Cultural harmony is practiced by 55% in touch with the God, 35% related to humans, and 10% related natural premises. Results of this study implied that IT is no longer expensive but able to create a better performance.

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Americans Do I.T. Better: US Multinationals and the Productivity Miracle

Cited by 121 publications

References 13 publications

Long term implications of the ICT revolution: Applying the lessons of growth theory and growth accounting

Long term implications of the ICT revolution: Applying the lessons of growth theory and growth accounting

Three-Way Complementarities: Performance Pay, Human Resource Analytics, and Information Technology

Information Technology Implementation on Socialization of Harmonious Culture in Bali

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