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...

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Main Authors:	Iacovone, Leonardo, Pereira-Lopez, Mariana, Schiffbauer, Marc
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	SKILLS EMPLOYMENT COMMUNITIES DISCUSSION COMPETITORS EQUIPMENT INTANGIBLE ASSETS COMMUNICATION TECHNOLOGIES PRODUCTION SKILLED WORKERS INFORMATION TECHNOLOGY DATA SOURCES USE OF INFORMATION GROUPS INFORMATION EXISTING KNOWLEDGE PROGRAMS SERVICES EFFECTS INCENTIVES LABOR ECONOMICS INFORMATION TECHNOLOGIES CONTENT MODELS PRICE EXPERIMENTATION CODES INFORMATION SYSTEMS COMPONENTS DRIVERS COMPUTER OPEN ACCESS IDEA KNOWLEDGE ECONOMIC ACTIVITY NEW TECHNOLOGIES COMMUNICATIONS DATA LIMITATIONS LABOR MARKET DATA WORKPLACE DIGITAL TRAINING COMPUTERS LOGISTICS LABOR PRODUCTIVITY PRODUCTIVITY IDEAS MARKETING MARKETS ORGANIZATIONS RESEARCH LABOR PROCESS PRACTICE BROADBAND COMPUTER EQUIPMENT MANUFACTURING TECHNOLOGY R&D PRODUCTIVITY GROWTH HUMAN CAPITAL TECHNOLOGICAL CHANGE TRAINING COSTS BUSINESS ENVIRONMENTS EXPLORATION DISCUSSIONS INTERNATIONAL TRADE SCIENCE SOFTWARE RESULTS ORGANIZATIONAL INNOVATION VALUE COMPETITIVENESS ELECTRICITY SYSTEMS PROCESSES EMAIL NEW MARKETS ELECTRICAL EQUIPMENT ECONOMICS POLICY INTERNET MANAGEMENT SKILLED LABOR RESULT ICT BUSINESS INVESTMENT NETWORK PERFORMANCE BUSINESS ENVIRONMENT MODEL INNOVATION INNOVATION PERFORMANCE INDICATOR WORLD TRADE ORGANIZATIONAL CHANGE COMMUNICATION EXTERNAL MARKETS TECHNOLOGIES APPLIANCES ORGANIZATIONAL CAPITAL USER TRADE STATISTICS ELECTRONICS COMPETITION
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

id	okr-10986-24212
recordtype	oai_dc
spelling	okr-10986-242122021-04-23T14:04:20Z Competition Makes IT Better : Evidence on When Firms Use IT More Effectively Iacovone, Leonardo Pereira-Lopez, Mariana Schiffbauer, Marc SKILLS EMPLOYMENT COMMUNITIES DISCUSSION COMPETITORS EQUIPMENT INTANGIBLE ASSETS COMMUNICATION TECHNOLOGIES PRODUCTION SKILLED WORKERS INFORMATION TECHNOLOGY DATA SOURCES USE OF INFORMATION GROUPS INFORMATION EXISTING KNOWLEDGE PROGRAMS SERVICES EFFECTS INCENTIVES LABOR ECONOMICS INFORMATION TECHNOLOGIES CONTENT MODELS PRICE EXPERIMENTATION CODES INFORMATION SYSTEMS COMPONENTS DRIVERS COMPUTER OPEN ACCESS IDEA KNOWLEDGE ECONOMIC ACTIVITY NEW TECHNOLOGIES COMMUNICATIONS DATA LIMITATIONS LABOR MARKET DATA WORKPLACE DIGITAL TRAINING COMPUTERS LOGISTICS LABOR PRODUCTIVITY PRODUCTIVITY IDEAS MARKETING MARKETS ORGANIZATIONS RESEARCH LABOR PROCESS PRACTICE BROADBAND COMPUTER EQUIPMENT MANUFACTURING TECHNOLOGY R&D PRODUCTIVITY GROWTH HUMAN CAPITAL TECHNOLOGICAL CHANGE TRAINING COSTS BUSINESS ENVIRONMENTS EXPLORATION DISCUSSIONS INTERNATIONAL TRADE SCIENCE SOFTWARE RESULTS ORGANIZATIONAL INNOVATION VALUE COMPETITIVENESS ELECTRICITY SYSTEMS PROCESSES EMAIL NEW MARKETS ELECTRICAL EQUIPMENT ECONOMICS POLICY INTERNET MANAGEMENT SKILLED LABOR RESULT ICT BUSINESS INVESTMENT NETWORK PERFORMANCE BUSINESS ENVIRONMENT MODEL INNOVATION INNOVATION PERFORMANCE INDICATOR WORLD TRADE ORGANIZATIONAL CHANGE COMMUNICATION EXTERNAL MARKETS TECHNOLOGIES APPLIANCES ORGANIZATIONAL CAPITAL USER TRADE STATISTICS ELECTRONICS COMPETITION 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. 2016-05-04T18:13:26Z 2016-05-04T18:13:26Z 2016-04 Working Paper http://documents.worldbank.org/curated/en/2016/04/26219308/competition-makes-better-evidence-firms-use-more-effectively http://hdl.handle.net/10986/24212 English en_US Policy Research Working Paper;No. 7638 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	SKILLS EMPLOYMENT COMMUNITIES DISCUSSION COMPETITORS EQUIPMENT INTANGIBLE ASSETS COMMUNICATION TECHNOLOGIES PRODUCTION SKILLED WORKERS INFORMATION TECHNOLOGY DATA SOURCES USE OF INFORMATION GROUPS INFORMATION EXISTING KNOWLEDGE PROGRAMS SERVICES EFFECTS INCENTIVES LABOR ECONOMICS INFORMATION TECHNOLOGIES CONTENT MODELS PRICE EXPERIMENTATION CODES INFORMATION SYSTEMS COMPONENTS DRIVERS COMPUTER OPEN ACCESS IDEA KNOWLEDGE ECONOMIC ACTIVITY NEW TECHNOLOGIES COMMUNICATIONS DATA LIMITATIONS LABOR MARKET DATA WORKPLACE DIGITAL TRAINING COMPUTERS LOGISTICS LABOR PRODUCTIVITY PRODUCTIVITY IDEAS MARKETING MARKETS ORGANIZATIONS RESEARCH LABOR PROCESS PRACTICE BROADBAND COMPUTER EQUIPMENT MANUFACTURING TECHNOLOGY R&D PRODUCTIVITY GROWTH HUMAN CAPITAL TECHNOLOGICAL CHANGE TRAINING COSTS BUSINESS ENVIRONMENTS EXPLORATION DISCUSSIONS INTERNATIONAL TRADE SCIENCE SOFTWARE RESULTS ORGANIZATIONAL INNOVATION VALUE COMPETITIVENESS ELECTRICITY SYSTEMS PROCESSES EMAIL NEW MARKETS ELECTRICAL EQUIPMENT ECONOMICS POLICY INTERNET MANAGEMENT SKILLED LABOR RESULT ICT BUSINESS INVESTMENT NETWORK PERFORMANCE BUSINESS ENVIRONMENT MODEL INNOVATION INNOVATION PERFORMANCE INDICATOR WORLD TRADE ORGANIZATIONAL CHANGE COMMUNICATION EXTERNAL MARKETS TECHNOLOGIES APPLIANCES ORGANIZATIONAL CAPITAL USER TRADE STATISTICS ELECTRONICS COMPETITION
spellingShingle	SKILLS EMPLOYMENT COMMUNITIES DISCUSSION COMPETITORS EQUIPMENT INTANGIBLE ASSETS COMMUNICATION TECHNOLOGIES PRODUCTION SKILLED WORKERS INFORMATION TECHNOLOGY DATA SOURCES USE OF INFORMATION GROUPS INFORMATION EXISTING KNOWLEDGE PROGRAMS SERVICES EFFECTS INCENTIVES LABOR ECONOMICS INFORMATION TECHNOLOGIES CONTENT MODELS PRICE EXPERIMENTATION CODES INFORMATION SYSTEMS COMPONENTS DRIVERS COMPUTER OPEN ACCESS IDEA KNOWLEDGE ECONOMIC ACTIVITY NEW TECHNOLOGIES COMMUNICATIONS DATA LIMITATIONS LABOR MARKET DATA WORKPLACE DIGITAL TRAINING COMPUTERS LOGISTICS LABOR PRODUCTIVITY PRODUCTIVITY IDEAS MARKETING MARKETS ORGANIZATIONS RESEARCH LABOR PROCESS PRACTICE BROADBAND COMPUTER EQUIPMENT MANUFACTURING TECHNOLOGY R&D PRODUCTIVITY GROWTH HUMAN CAPITAL TECHNOLOGICAL CHANGE TRAINING COSTS BUSINESS ENVIRONMENTS EXPLORATION DISCUSSIONS INTERNATIONAL TRADE SCIENCE SOFTWARE RESULTS ORGANIZATIONAL INNOVATION VALUE COMPETITIVENESS ELECTRICITY SYSTEMS PROCESSES EMAIL NEW MARKETS ELECTRICAL EQUIPMENT ECONOMICS POLICY INTERNET MANAGEMENT SKILLED LABOR RESULT ICT BUSINESS INVESTMENT NETWORK PERFORMANCE BUSINESS ENVIRONMENT MODEL INNOVATION INNOVATION PERFORMANCE INDICATOR WORLD TRADE ORGANIZATIONAL CHANGE COMMUNICATION EXTERNAL MARKETS TECHNOLOGIES APPLIANCES ORGANIZATIONAL CAPITAL USER TRADE STATISTICS ELECTRONICS COMPETITION Iacovone, Leonardo Pereira-Lopez, Mariana Schiffbauer, Marc Competition Makes IT Better : Evidence on When Firms Use IT More Effectively
geographic_facet	China
relation	Policy Research Working Paper;No. 7638
description	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.
format	Working Paper
author	Iacovone, Leonardo Pereira-Lopez, Mariana Schiffbauer, Marc
author_facet	Iacovone, Leonardo Pereira-Lopez, Mariana Schiffbauer, Marc
author_sort	Iacovone, Leonardo
title	Competition Makes IT Better : Evidence on When Firms Use IT More Effectively
title_short	Competition Makes IT Better : Evidence on When Firms Use IT More Effectively
title_full	Competition Makes IT Better : Evidence on When Firms Use IT More Effectively
title_fullStr	Competition Makes IT Better : Evidence on When Firms Use IT More Effectively
title_full_unstemmed	Competition Makes IT Better : Evidence on When Firms Use IT More Effectively
title_sort	competition makes it better : evidence on when firms use it more effectively
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/04/26219308/competition-makes-better-evidence-firms-use-more-effectively http://hdl.handle.net/10986/24212
_version_	1764455942804471808

Competition Makes IT Better : Evidence on When Firms Use IT More Effectively

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