Scandinavian Working Papers in Economics

Working Paper Series,
Sveriges Riksbank (Central Bank of Sweden)

No 230: Effects of Organizational Change on Firm Productivity

Christina Håkansson ()
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Christina Håkansson: Institute for International Economic Studies, IIES., Postal: Institute for International Economic Studies, IIES., Stockholm University, 106 91 Stockholm,

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.

Keywords: information technology; productivity; organizational change

JEL-codes: D24; E22; L22; O33

38 pages, June 1, 2009

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