Beyond Computation: Information Technology, Organizational Transformation and Business Performance
- (pp. 23-48)
(Complimentary)
Abstract
To understand the economic value of computers, one must broaden the traditional definition of both the technology and its effects. Case studies and firm-level econometric evidence suggest that: 1) organizational "investments" have a large influence on the value of IT investments; and 2) the benefits of IT investment are often intangible and disproportionately difficult to measure. Our analysis suggests that the link between IT and increased productivity emerged well before the recent surge in the aggregate productivity statistics and that the current macroeconomic productivity revival may in part reflect the contributions of intangible capital accumulated in the past.Citation
Brynjolfsson, Erik, and Lorin M. Hitt. 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance." Journal of Economic Perspectives, 14 (4): 23-48. DOI: 10.1257/jep.14.4.23JEL Classification
- L86 Information and Internet Services; Computer Software
- O33 Technological Change: Choices and Consequences; Diffusion Processes
- D24 Production; Cost; Capital and Total Factor Productivity; Capacity
- L22 Firm Organization and Market Structure
- L63 Microelectronics; Computers; Communications Equipment
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