Chapter

International Differences in the Adoption and Impact of New Information Technologies and New HR Practices

Ann Bartel, Casey Ichniowski, Kathryn L. Shaw and Ricardo Correa

in International Differences in the Business Practices and Productivity of Firms

Published by University of Chicago Press

Published in print October 2009 | ISBN: 9780226261942
Published online February 2013 | e-ISBN: 9780226261959 | DOI: http://dx.doi.org/10.7208/chicago/9780226261959.003.0003
International Differences in the Adoption and Impact of New Information Technologies and New HR Practices

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There is now a well-developed body of macroeconomic evidence that information technology (IT) investments are likely to have paid-off with higher levels of productivity growth in industries that invested more heavily in IT in recent years. The microeconomic evidence in this chapter is based on data obtained from plant visits and detailed survey of plants in the valve-making industry in the United States and United Kingdom. It is found that despite differences in the current and historical patterns of institutions in the United Kingdom and United States, both countries exhibit comparable patterns of gains to IT at the plant level. Using very detailed data on the valve-making industry, it is shown that investments in IT that are embedded in the production process do yield increases in productivity. Thus, the performance of the firm is enhanced because of both new strategies and higher levels of productivity. Finally, those plants that purchase more IT-embedded capital are also more likely to increase their demand for skills.

Keywords: international differences; adoption; information technology; valve-making industries; United States; United Kingdom

Chapter.  9086 words.  Illustrated.

Subjects: International Economics

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