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Firm Growth and Profitability:The Role of Mobile IT and Organizational Practices

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  • Koski, Heli

Abstract

This study uses a unique survey data from 398 Finnish manufacturing firms to explore how the order of magnitude of mobility and connectivity of a firms ICT stock in conjunction with various organizational innovation and HRM practices affect the firms performance. The data suggest that mobile connectivity as such does not significantly contribute to the firms growth and profitability. However, the empirical results find support for the agency theory based argument : a greater mobility associated with the use of a pertinent economic incentive scheme and a systematic performance monitoring seems to promote the firms growth. In addition, re-organization of tasks within an organization is implemented most successfully, boosting profitability, when the firms re-organization strategy incorporates the adoption of mobile, Internet-connected IT stock.

Suggested Citation

  • Koski, Heli, 2010. "Firm Growth and Profitability:The Role of Mobile IT and Organizational Practices," Discussion Papers 1222, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:1222
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    References listed on IDEAS

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    1. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
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    Cited by:

    1. Sanja Popović-Pantić & Dušica Semenčenko & Nikola Vasilić, 2020. "Digital Technologies And The Financial Performance Of Female Smes In Serbia: The Mediating Role Of Innovation," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 65(224), pages 53-82, January –.
    2. Mohamed Kossaï & Patrick Piget, 2012. "Utilisation des technologies de l'information et des communications (TIC) et performance économique des PME Tunisiennes :une étude économétrique," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(3), pages 305-328.

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    More about this item

    Keywords

    ICT use; mobility; connectivity; organizational practices; firm performance;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • 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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