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ICT and productivity growth - the paradox resolved?
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ICT and productivity growth - the paradox resolved?

Author

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  • Alan Hughes
  • Michael S Scott Morton

Abstract

This paper argues that the gains from ICT at the individual business level depend upon the implementation of a range of complementary ÔinvestmentsÕ and organisational changes appropriate to the competitive and institutional context of particular sectors. To support our proposition we provide a brief overview of a recently emerging but compelling body of large sample micro-econometric research. We focus in depth, however on a single case study of ICT related organisational transformation in the transportation sector. This case builds upon the conceptual framework developed in the MIT interesting organisations project (Scott Morton (2003)). Taken as a whole we believe there is clear evidence of the conditions that seem to be required before the payoff from ICT can be realised by an organisation and hence diffuse through the economy. Effective use of ICT requires a holistic solution which recognises that there is no single factor, or even just a few, which leads to successful exploitation. Rather success comes from the artful crafting of a series of interrelated and mutually interdependent driving forces. The paradoxical 'gap' between investment in computers and realised performance can be closed if this lesson is absorbed.

Suggested Citation

  • Alan Hughes & Michael S Scott Morton, 2005. "ICT and productivity growth - the paradox resolved?," Working Papers wp316, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp316
    Note: PRO-1
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    Cited by:

    1. Lynch, Lisa M., 2007. "The Adoption and Diffusion of Organizational Innovation: Evidence for the U.S. Economy," IZA Discussion Papers 2819, Institute of Labor Economics (IZA).
    2. Khalid Sultan & Dr Mirza Jan, 2012. "Information & Communication Explosion of Knowledge Economy with Special reference to Cultural Imperialism," International Journal of Learning and Development, Macrothink Institute, vol. 2(5), pages 163-174, October.
    3. Paolo Guerrieri & Sara Bentivegna (ed.), 2011. "The Economic Impact of Digital Technologies," Books, Edward Elgar Publishing, number 14361.

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    Keywords

    ICT; Complementary Investment; Productivity; Transport Services;
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