Role of It

The map of training Technology in Modern performance: accompaniment or
Substitute to Other Inputs?
January, 1999
Lorin M. Hitt
University of Pennsylvania, Wharton School
lhitt@wharton.upenn.edu
1318 Steinberg Hall-Dietrich Hall
Philadelphia, PA 19104

Eli M. Snir
University of Pennsylvania, Wharton School
eli@opim.wharton.upenn.edu
1300 Steinberg Hall-Dietrich Hall
Philadelphia, PA 19104

We would equivalent to thank Erik Brynjolfsson, Eric Clemons, Rachel Croson, David Croson, Paul
Kleindorfer, Moti Levi, Hank Lucas, and seminar participants at the Wharton School and the
Workshop on Information Systems and Economics for comments on earlier drafts of this paper.
This research has been generously back up by the National Science Foundation (Grant IIS9733877). Incon Research, the Center for cartoon Research, Computer Intelligence Infocorp and
Informationweek provided or helped to collect essential data.

The Role of Information Technology in Modern Production: Complement or
Substitute to Other Inputs?

Abstract
Previous work has shown that the economic shock of IT varies systematically with how a firm
is organized.



This study investigates the usance of organizational factors on an important aspect of
the economics of IT: the substitution of IT capital for opposite(a) inputs such as capital and labor.
Much of the previous parole of IT impact has focused on the substitution of IT for labor, yet
much of the managerial literature has recently stressed the importance of finding
musical accompanimentarities amongst IT and other organizational practices. The ability to identify and
leverage potential complements between IT and other factors may become increasingly
important as IT investments ar used less for simple cost reduction and more(prenominal) for creating
customer value. Using firm level data for oer 400 large firms we find that organizational
factors play an important role in a firms ability to complement existing capital with IT
investments. It appears that...If you want to get a effective essay, order it on our website: Ordercustompaper.com



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