Process Improvement Through Software
The productivity increase and entrepreneurial dynamics in the adoption and efficient use of ICT. Possible lags in the effects of ICT are not very well known. Furthermore, timing between the implementation of ICT and complementing organizational changes remains an open question. According to their research it seems that the additional productivity achieved typically ranges from 8 to 18%. The effect on services tends to be larger than on manufacturing. The effect is often manifold in younger and can even be negative in older firms. Since organizational changes are easier to implement in younger firms and recently established firms have by definition a new structure, this can be interpreted as evidence for the need for complementary organizational changes. Manufacturing firms seem to benefit from ICT-induced efficiency in internal communication whereas service firms benefit from efficiency in their external communications.
Also the results of Maliranta and Rouvinen provide direct and indirect evidence on the importance of competition, education, innovation, organizational change and entrepreneurial dynamics in the adoption and efficient use of ICT. Possible lags in the effects of ICT are not very well known. Furthermore, timing between the implementation of ICT and complementing organizational changes remains an open question. fAccording to the study, one would expect that the two are implemented simultaneously, but anecdotal evidence would seem to suggest that organizational changes that follow show a considerable time lag.
KeywordsProcess Innovation Organizational Change Product Innovation Firm Growth Service Firm
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