scholarly journals Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence

10.3386/w7136 ◽  
1999 ◽  
Author(s):  
Timothy Bresnahan ◽  
Erik Brynjolfsson ◽  
Lorin Hitt
2012 ◽  
Vol 116 (2) ◽  
pp. 244-246 ◽  
Author(s):  
Paul-Antoine Chevalier ◽  
Rémy Lecat ◽  
Nicholas Oulton

Author(s):  
Makoto Nakayama ◽  
Norma Sutcliffe

Information technology (IT) skill shortages appear at the market level occasionally—usually for emerging technologies, unanticipated challenges, and/or unresolved issues such as systems security. Even when a market-level skill shortage does not exist, a firm can still suffer from skill shortages for its critical information system (IS) project and/or IT operations unless the firm plans and manages its needs for IT skills. This chapter first surveys IT skills at the market level and then at the firm level to gain a perspective on the issues. Attention turns to the nature and characteristics of skills in general—not just IT skills—by reviewing past literature. The management of skills is deeply rooted in the management of knowledge, skills, and abilities (KSAs) and human resource practices of the firm. Key issues and lessons are drawn from the literature in those areas. We conclude by considering the nature and characteristics of IT skills in developing an agenda for the effective management of IT skills.


2019 ◽  
Vol 40 (2) ◽  
pp. 328-355 ◽  
Author(s):  
Charilaos Mertzanis ◽  
Mona Said

Purpose The purpose of this paper is to examine the role of access to skilled labor in explaining firms’ sales growth subject to the controlling influence of a wide range of firm-specific characteristics and country-level economic and non-economic factors. Design/methodology/approach The analysis uses a consistent and large firm-level data set from the World Bank’s Enterprise Surveys that includes 138 developing countries. An instrumental variables model with a GMM estimator is used for estimating the impact of access to skilled labor on firm performance. In order to obtain more robust estimators, the analysis introduces country-level controls reflecting the influence of economic and institutional factors, such as economic and financial development, institutional governance, education and technological progress. Findings The results document a significant and positive association between access to skilled labor and firm performance in the developing world. The explanatory power of access to skilled labor remains broadly robust after controlling for a wide range of firm-specific characteristics: sectoral and geographical influences matter. The results also show that the association between labor skill constraints and firm performance is mitigated by country-level factors but in diverse ways. Development, institutions, education and technological progress exert various mitigating effects on firm-level behavior regarding access to skilled labor. Originality/value The paper’s novel contribution is threefold: first, it uses joint firm, sector and country-level information to analyze the role of access to skilled labor on firm performance; second, it uses consistently produced information at the firm level from 138 developing countries; and, third, it considers the controlling impact of a wide range of country-level factors that reflect a country’s overall development, institutions and evolution.


Author(s):  
Qing Hu ◽  
Robert T. Plant

The promise of increased competitive advantage has been the driving force behind the large-scale investment in information technology (IT) over the last three decades. There is a continuing debate among executives and academics as to the measurable benefits of this investment. The return on investment (ROI) and other performance measures reported in the academic literature indicate conflicting empirical findings. Many previous studies have based their conclusions on the statistical correlation between IT capital investment and firm performance data of the same time period. In this study we argue that the causal relationship between IT investment and firm performance could not be reliably established through concurrent IT and performance data. We further submit that it would be more convincing to infer causality if the IT investments in the preceding years are significantly correlated with the performance of a firm in the subsequent year. Using the Granger causality models and three samples of firm-level financial data, we found no statistical evidence that IT investments have caused the improvement of financial performance of the firms in the samples. On the contrary, the causal models suggest that improved financial performance over consecutive years may have contributed to the increase of IT investment in the subsequent year. Implications of these findings as well as directions for future studies are discussed.


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