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

Download full PDF article

Abstract

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.

Download full PDF