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The impact of ICT on the growth of the service industries

Author

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  • Koson Sapprasert

    (Centre for Technology, Innovation and Culture, University of Oslo)

Abstract

This study examines the contribution of Information and Communication Technology (ICT) to a growth in services. Data at the firm level is employed to investigate how ICT as a key technology, combined with non-technological determinants, can influence firm performance. The study develops an argument that ICT is one of the major success factors at the present time, and this particularly holds true in the case of service firms, primarily due to their fundamental characteristics of interactivity and intensity of information, which are highly compatible with this technology. The results indicate that the presence of ICT explains the higher growth in productivity and profitability experienced by firms in the service industries. Growth in services was also found to be significantly linked to the level of ICT intensity in service firms, especially when this intensity is complemented by organisational change. The impact of ICT on service firms is assessed in detail, while manufacturing firms and other innovation activities serve as benchmarks.

Suggested Citation

  • Koson Sapprasert, 2007. "The impact of ICT on the growth of the service industries," Working Papers on Innovation Studies 20070531, Centre for Technology, Innovation and Culture, University of Oslo, revised Apr 2010.
    • Handle: RePEc:tik:inowpp:20070531
    Note: Earlier version was presented at the DRUID summer conference 2006
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    File URL: http://www.tik.uio.no/InnoWP/2007%20Koson%20Sapprasert%20-%20The%20impact%20of%20ICT%20on%20the%20growth%20of%20service%20industries.pdf
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    Citations

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    Cited by:

    1. Alexandre Trigo, 2013. "The Nature of Innovation in R&D- and Non-R&D-Intensive Service Firms: Evidence from Firm-Level Latent Class Analysis," Industry and Innovation, Taylor & Francis Journals, vol. 20(1), pages 48-68, January.
    2. Mugobi, Thereza & Mlozi, Shogo, 2021. "The impact of external factors on ICT usage practices at UNESCO World Heritage Sites," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(1), pages 3-12.
    3. Muhammad Salam & Javed Iqbal & Anwar Hussain & Hamid Iqbal, 2018. "The Determinants of Services Sector Growth: A Comparative Analysis of Selected Developed and Developing Economies," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 57(1), pages 27-44.
    4. Tilman Santarius & Johanna Pohl & Steffen Lange, 2020. "Digitalization and the Decoupling Debate: Can ICT Help to Reduce Environmental Impacts While the Economy Keeps Growing?," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    5. Liang, Huijun & Shi, Changkuan & Abid, Nabila & Yu, Yanliang, 2023. "Are digitalization and human development discarding the resource curse in emerging economies?," Resources Policy, Elsevier, vol. 85(PB).
    6. Karol, Rodriguez & Vélez, Jorge, 2013. "Impacto de las TIC en el nivel de innovación en América Latina y el Caribe: Estimaciones econométricas a nivel de un panel [Impact of ICT on the level of innovation in Latin America and the Caribbe," MPRA Paper 60480, University Library of Munich, Germany, revised Oct 2013.
    7. 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.
    8. Yongfei Li & Sang-Gun Lee & Myungjai Kong, 2019. "The industrial impact and competitive advantage of China’s ICT industry," Service Business, Springer;Pan-Pacific Business Association, vol. 13(1), pages 101-127, March.
    9. Chinie Alexandra Catalina, 2019. "Assessing the influence of Information and Communication Technologies on energy productivity," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 515-527, May.

    More about this item

    Keywords

    Information and Communication Technology (ICT); Innovation in Services; Organisational Change; Firm Growth;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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