2008
DOI: 10.1002/itdj.20091
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Information technology and productivity: Evidence for Brazilian industry from firm-level data

Abstract: This article measures the effects from the adoption of information technology (IT) tools on the productivity of workers in the Brazilian manufacturing sector. IT adoption is related to the use of information management systems by firms. The augmented Cobb-Douglas production function supports the estimation of the econometric model. We use the most complete database related to IT adoption in Brazil. Our sample includes 26,776 companies and refers to the year 2003. The data also cover key information about techn… Show more

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Cited by 20 publications
(6 citation statements)
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“…Moreover, we expanded the current understanding by showing that all innovation inputs related to TECHNICAL help to improve the OPP outputs, which had not been verified before. This positive effect reinforces prior findings from Mendonça et al (2008), who demonstrated that the adoption of IT solutions enhances an industry's productivity. Moreover, when comparing the positive and negative effects that TECHNICAL has on OPP and RED, our results help to understand that the benefit of these activities depends on the type of innovation output that is mainly pursued by the industry.…”
Section: Discussionsupporting
confidence: 87%
“…Moreover, we expanded the current understanding by showing that all innovation inputs related to TECHNICAL help to improve the OPP outputs, which had not been verified before. This positive effect reinforces prior findings from Mendonça et al (2008), who demonstrated that the adoption of IT solutions enhances an industry's productivity. Moreover, when comparing the positive and negative effects that TECHNICAL has on OPP and RED, our results help to understand that the benefit of these activities depends on the type of innovation output that is mainly pursued by the industry.…”
Section: Discussionsupporting
confidence: 87%
“…There has been a number of studies such as Melville et al 11 and Mahmood and Mann 12 that have attempted to analyze IT impact on productivity at every level of performance measures such as using the entire country’s economic data (Dewan and Kraemer 13 ), industry level data (O’Mahony and Timmer 14 ), and firm level data (Mendonça et al 15 ), and the conclusions suggested by these studies are inconsistent. 4,16 –18 For instance, Hitt and Brynjolfsson 19 used firm-level data on IT expenditure by 370 big companies and suggested that IT had increased productivity and created substantial value for consumers. However, Loveman 18 also used the Cobb–Douglas production function suggested that there was no evidence of a productivity increase from IT investment.…”
Section: Review Of Related Workmentioning
confidence: 99%
“…Numerous studies showed that ICT diffusion has positively and significantly affected economic growth. For example, Mendonca, Freitas, and Souza (2008) investigated the relationship between ICT and productivity using a cross-sectional data for Brazilian economy. They found that ICT applications by workers significantly increase production level.…”
Section: Review Of Literaturementioning
confidence: 99%