A neglected input to production: the role of ICT-schooled employees in firm performance

Abstract

Purpose The purpose of this paper is to broaden the perspective on how information and communication technology (ICT) relates to productivity by introducing a novel ICT variable: the share of ICT-schooled employees in firms, an intangible input often neglected or difficult to measure. Design/methodology/approach Based on a Cobb-Douglas production function specification, the association between the share of ICT-schooled employees and firm productivity is estimated by the use of unique comparable multi-linked firm-level data sets from statistical offices in six European countries for the period of 2001-2009. Findings There are indications that the share of ICT-schooled employees significantly and positively relates to productivity, and also that this relationship is generally more persistent than that of ICT intensity of firms, measured as the proportion of broadband internet-enabled employees. However, the strength of the association varies across countries and demonstrates that underlying factors, such as industry structure and institutional settings might be of importance too. Research limitations/implications Data features and the way to access harmonised firm-level data across countries affect the choice of econometric approach and output variable. Practical implications The results emphasise the importance of specific ICT skills in firms independently of where in the organisation the employee works. Originality/value Studies on associations between employees with specific (higher) education based on formal credentials and productivity are rare. Even more uncommon is the cross-country setting with harmonised data including general ICT intensity of firms.

Productivity, technological innovations and broadband connectivity: firm-level evidence for ten European countries

“…Eurasian Business Review (2019) 9:25-48 firms is to use the share of workers with an occupation or degree in information science or related fields such as mathematics, engineering and other natural science fields (Bartelsman et al 2017;Hagsten and Sabadash 2017).…”

“…In contrast, Acemoglu et al (2014) find poor productivity effects in US ICT intensive manufacturing industries for the period 1980-2009, by measuring ICT usage as the ratio of industry computer expenditures to total capital expenditures. Firm-level analyses of the association between productivity and specific ICT usages such as broadband internet (or e-commerce applications) are less common (for exceptions see Bertschek et al 2013;Colombo et al 2013;Hagsten 2016;Hagsten and Sabadash 2017).…”

“…However, analyses of datasets linked at the level of the firm may also be inconclusive, due to large heterogeneity even in narrowly defined industries (Bartelsman and Doms 2000;Syverson 2011). Another disadvantage of linked firm-level data often originates from measures to ease the response burden of firms (Hagsten and Sabadash 2017). This means that different surveys do not necessarily overlap and that there is a high degree of panel attrition over time (Raymond et al 2015) restricting the choice of estimation methods that can be used.…”

Innovation intensity and skills in firms across five European countries

“…This study also contributes to the growing literature on analysis of harmonized and linked firm-level data, appropriate for cross-country comparisons. Examples include Bartelsman et al (2019), Hagsten and Kotnik (2017), Hagsten and Sabadash (2017) and Pantea et al (2017) as well as Hagsten (2016). All these studies examine the relationship between firm performance (output, productivity, exports and employment) and different ICT or innovation variables based on multi-linked official firm-level data.…”

Interaksi Teknologi dan Tenaga Kerja: Peran Teknologi pada Daya Saing Produk (Studi Kasus Sentra Usaha Kecil dan Menengah Bordir Bangil Pasuruan)

“…Pangsa pasar memaksa produk memiliki sentuhan kreativitas tinggi dan pemilik usaha akan berusaha memenuhinya melalui pengetahuan penjualan produk dan selera pasar. Sementara itu, peralihan penggunaan teknologi dapat membantu agar produk lebih bervariasi dan produktivitas meningkat (Hagsten & Sabadash, 2017). Penggunaan teknologi juga memudahkan proses produksi dan membantu meningkatkan produksi dengan lebih cepat (Chiarvesio & Romanello, 2018).…”