Competition Makes IT Better : Evidence on When Firms Use IT More Effectively
This paper uses a unique firm-level data set for Mexico, with information never used for research before, to assess how use of information technology (IT henceforth) influences firm performance. Further, the paper explores if, in the context of inc...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/04/26219308/competition-makes-better-evidence-firms-use-more-effectively http://hdl.handle.net/10986/24212 |
| Summary: | This paper uses a unique firm-level data
set for Mexico, with information never used for research
before, to assess how use of information technology (IT
henceforth) influences firm performance. Further, the paper
explores if, in the context of increasing competition from
China, this effect is different for firms more strongly
affected by competition where incentives for upgrading and
innovation may be more intense. In this perspective, the
paper analyzes the complementarity between IT and other
changes spurred by competition, taking advantage of the
exogenous shock generated by Chinese competition. The
results indicate that IT use has higher effects over
productivity in the case of firms facing higher competition
from China, in the domestic market and in the U.S. market.
Furthermore, the paper shows how these changes appear to be
driven by complementary investments in innovation and
organizational changes. |
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