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Effects of Organizational Change on Firm Productivity

Author

Listed:
  • Håkansson, Christina

    (Institute for International Economic Studies, IIES.)

Abstract

An increasing use of IT facilitates firms to use more efficient organiza- tional forms. Significant reorganizations of business processes around IT capital can thereby boost productivity growth. The aim of this study is to empirically examine how …rm productivity growth is affected by orga- nizational changes and investments in IT using a Difference-in-Difference approach on a panel of Swedish firms over the years 1997-2005. The empirical results show a positive and significant effect on total factor pro- ductivity growth for firms that invested above median in IT and at the same time undertook organizational changes.

Suggested Citation

  • Håkansson, Christina, 2009. "Effects of Organizational Change on Firm Productivity," Working Paper Series 230, Sveriges Riksbank (Central Bank of Sweden).
    • Handle: RePEc:hhs:rbnkwp:0230
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    File URL: http://www.riksbank.se/upload/Dokument_riksbank/Kat_publicerat/WorkingPapers/2009/wp230.pdf
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    More about this item

    Keywords

    information technology; productivity; organizational change;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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