---
canonical_url: "https://csls.ca/ipm-archive/ipm-issue-9/the-effect-of-organizational-innovation-and-information-and-communications-technology-on-firm-performance/"
title: "The Effect of Organizational Innovation and Information and Communications Technology on Firm Performance"
author:
  name: "CSLS"
  url: "https://csls.ca/author/cslc/"
date_published: "2026-07-13T06:53:21+00:00"
date_modified: "2026-07-20T20:45:46+00:00"
post_type: "ipm"
summary: ""
ipm_issue_period:
  - "Fall 2004"
ipm_keyword:
  - "Canada"
  - "complementarity"
  - "firm performance"
  - "human capital"
  - "ICT"
  - "manufacturing"
  - "organizational innovation"
  - "productivity"
  - "services"
  - "Workplace and Employee Survey"
ipm_research_theme:
  - "Sectoral and firm-level dynamics"
  - "Technology and innovation"
ipm_country_focus:
  - "Canada"
featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp"
status: "publish"
---

# The Effect of Organizational Innovation and Information and Communications Technology on Firm Performance

Canonical URL: https://csls.ca/ipm-archive/ipm-issue-9/the-effect-of-organizational-innovation-and-information-and-communications-technology-on-firm-performance/

# The Effect of Organizational Innovation and Information and Communications Technology on Firm Performance

[Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-9-4-Gera-Gu.pdf)

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Cite this article as:

Gera, Surendra, and Wulong Gu. 2004. “The Effect of Organizational Innovation and Information and Communications Technology on Firm Performance.” International Productivity Monitor, No. 9 (Fall 2004): 37–51. https://www.csls.ca/ipm-archive/ipm-issue-9/the-effect-of-organizational-innovation-and-information-and-communications-technology-on-firm-performance/

## Authors:

-
Surendra Gera
Micro-Economic Policy Analysis Branch, Innovation, Science and Economic Development Canada

-
Wulong Gu
Micro-Economic Analysis Division, Statistics Canada

## IPM Issue 9

Fall 2004 pp. 37–51

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## Abstract

## Résumé

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This article uses Statistics Canada’s 1999 Workplace and Employee Survey to examine whether ICT use and organizational innovation are associated with better performance in Canadian firms in both manufacturing and service sectors. It finds that firm performance improves with greater ICT use, higher worker skills, and organizational innovations in production practices, human resource management, and product/service design. The analysis also confirms that organizational changes and worker skills are complementary to ICT investment in improving productivity, and that this complementarity holds across both manufacturing and services.

Cet article utilise l’Enquête sur le milieu de travail et les employés de Statistique Canada de 1999 pour examiner si l’utilisation des TIC et l’innovation organisationnelle sont associées à de meilleures performances dans les entreprises canadiennes, tant dans le secteur manufacturier que dans le secteur des services. Il constate que la performance des entreprises s’améliore avec un recours accru aux TIC, des compétences plus élevées chez les travailleurs et des innovations organisationnelles dans les pratiques de production, la gestion des ressources humaines et la conception des produits et services. L’analyse confirme également que les changements organisationnels et les compétences des travailleurs sont complémentaires à l’investissement en TIC pour améliorer la productivité, et que cette complémentarité vaut tant pour le secteur manufacturier que pour les services.

[Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-9-4-Gera-Gu.pdf)
