Information technology, corporate productivity, and the new economy / Stephan Kudyba and Romesh Diwan ; foreword by Dennis McGinn.

Format:

Book

Author/Creator:

Kudyba, Stephan, 1963-

Contributor:

Diwan, Romesh K., 1933-

Language:

English

Subjects (All):

Information technology--Economic aspects.

Information technology.

Industrial productivity.

Technological innovations--Economic aspects.

Technological innovations.

Information technology--Economic aspects--United States.

Industrial productivity--United States.

Technological innovations--Economic aspects--United States.

Physical Description:

1 online resource (241 p.)

Edition:

1st ed.

Distribution:

London : Bloomsbury Publishing, 2024

Place of Publication:

Westport, Conn. : Praeger, 2002.

Language Note:

English

Summary:

The authors bring a dual perspective-that of a practicing consultant and that of a professor of economics-to the complex strategic questions facing managers and corporate leaders who want their firms to get the most out of their investments in information technology. The information economy is built upon the myriad and sometimes unforeseen ways in which information technologies have become engines of productivity in themselves, rather than just fancy adjuncts. In explaining the rise of the information economy, the authors provide not only valuable context often missing from today's discussions but also a thorough understanding of the origination, development, and diffusion process of innovations. They also examine prevailing practices and implications for the future, including the potential pitfalls common to some information technology strategies. Relying on an underpinning of economic theory combined with heavy empirical analysis, Kudyba and Diwan describe the true nature of the information economy, paying as much attention to its particularities as to its more profound implications. How is information technology being implemented across industry sectors, and how can it be harnessed to improve overall firm-level productivity? How have innovations in high technology impacted e-commerce? Which e-commerce strategies prevail, and what can be expected of them? How can traditional economic theory help managers evaluate such in-vogue strategies as customer relationship management, market exchanges, and supply chain management? The authors answer these questions and more, including one of the most vexing in the short history of e-commerce: What led to the demise of so many technology stocks and dot-coms following the spring 2000 Nasdaq plunge, and what are the longer-term prospects for e-business?

Contents:

Cover

Information Technology, Corporate Productivity, and the New Economy

Contents

Foreword

Acknowledgments

Introduction

PART I LAYING THE GROUNDWORK

1 An Introduction to the Information Economy

INFORMATION TECHNOLOGY AND THE INFORMATION ECONOMY: A TECHNO-ECONOMIC PARADIGM

INNOVATION AND A TECHNO-ECONOMIC PARADIGM

A NEW ECONOMY

FREE TRADE, GLOBALIZATION, AND INFORMATION TECHNOLOGY IN THE NEW ECONOMY

NOTES

2 A Closer Look at Information Technology and the Information Age

WHAT IS INFORMATION TECHNOLOGY?

CORPORATE CREATORS OF INFORMATION TECHNOLOGY

COMMENTS ON ECONOMIC REPERCUSSIONS

AN INDUSTRY DESCRIPTION

AGGREGATE INDUSTRY SECTORS

3 Productivity and Production Theory

DOES LABOR PRODUCTIVITY EXPLAIN EVERYTHING?: A CLOSER LOOK AT TOTAL FACTOR PRODUCTIVITY

TECHNOLOGICAL CHANGE (EMBODIED AND DISEMBODIED APPROACHES)

ECONOMETRIC MEASUREMENT OF TECHNOLOGICAL CHANGE

THE PRODUCTION FUNCTION

SOME PAST CONCERNS REGARDING U.S. PRODUCTIVITY

APPLICATIONS IN PRODUCTIVITY ANALYSIS

WHY PRODUCTIVITY NOW?

PERTINENT QUESTIONS IN ANALYZING INFORMATION TECHNOLOGY

DIFFICULTIES IN ESTIMATING PRODUCTIVITY

Inaccurate Measurement of IT Capital

Determining the Market Value of IT Equipment

Measuring Potential Quality Changes in Output

Measuring Output of the Service Sector

Potential Lags between IT Investment and Corresponding Effects

Mismanagement of IT Resources

Low Concentration of Firm-Level IT Capital

ADDRESSING THE DIFFICULTIES

COMMENTS ON PROFITABILITY

A CLOSING NOTE ON THE EMPIRICAL ANALYSIS

4 Empirical Studies on Productivity and Information Technology Investment at the Firm Level

THREE BENCHMARK STUDIES OF THE PAST

A Firm-Level Analysis Using Two Data Sources

Paradox Lost?.

Productivity, Profitability, and Consumer Surplus

A MORE RECENT FIRM-LEVEL ANALYSIS

Data Sources, Calculations, and Statistical Summaries

Factor Input Calculations

Capital

IT Capital

Non-IT Labor and IT Labor

Empirical Results

A Sector Analysis

COMPARING EMPIRICAL RESULTS

CONCLUSION

A BRIEF WORD ON PRODUCTION FUNCTIONS AND FACTOR SUBSTITUTION

5 Theoretical Background of and Empirical Work Regarding Information Technology and Corporate Profits

MICROECONOMIC THEORY AND INFORMATION TECHNOLOGY

SUSTAINING A COMPETITIVE ADVANTAGE

EMPIRICAL APPROACHES TO MEASURING CORPORATE PERFORMANCE

Information Technology and Firm Performance: An Empirical Analysis

Information Technology and Business Value: A Two-Stage Approach

Brynjolfsson and Hitt: A Firm-Level Analysis of Profitability

A MORE RECENT ANALYSIS OF INFORMATION TECHNOLOGY AND CORPORATE PROFITS

INFORMATION TECHNOLOGY AND COST REDUCTION

MICROECONOMICS AND BUSINESS THEORY

INFORMATION TECHNOLOGY IN THE 1990s AND THE CHANGING STRUCTURE OF THE FIRM

A DETAILED LOOK AT THE EMPIRICAL ANALYSIS

REASONS FOR RECENT PROFIT RESULTS

CLOSING REMARKS

PART II A MORE DETAILED LOOK AT INFORMATION TECHNOLOGY FACTORS THAT PROMOTE FIRM EFFICIENCY

6 A Detailed Look at Information Technology and U.S. Industry

STATISTICAL SUMMARIES OF U.S. INDUSTRIES

RANKING INDUSTRIES ACCORDING TO INFORMATION TECHNOLOGY USAGE

ANOTHER ATTEMPT AT INPUT SUBSTITUTION ANALYSIS

ESTIMATING PRODUCTIVITY ACCORDING TO INFORMATION TECHNOLOGY INTENSITY

THE CHANGING STRUCTURE OF THE FIRM

Partnerships, Outsourcing, and Corporations

A Closer Look at U.S. High-Tech Manufacturing (Flexible Manufacturing)

INDUSTRY OF TODAY

THE DELL MODEL

ANOTHER INFORMATION TECHNOLOGY BUZZWORD?

7 Software Applications That Enhance Knowledge.

INFORMATION TECHNOLOGY/ECONOMIC THEORY AND BUSINESS STRATEGY: THE BUILDING BLOCKS FOR BUSINESS INTELLIGENCE

AN INTRODUCTION TO BUSINESS INTELLIGENCE

The Business Intelligence Spectrum: Data Extraction and Report Writing, OLAP, Intranets, Extranets, and the Internet

Functional and Company-Specific Examples

Software Applications and Corporate Productivity

USING INFORMATION TECHNOLOGY TO SURVIVE IN THE INFORMATION AGE: A MODEL OF AN INFORMATION TECHNOLOGY SYSTEM

8 Economic Principles and Information Technology: A Focus on Market Exchanges and the CRM Principle

MEASURING CONSUMER PREFERENCES

DATA MINING (ECONOMETRIC MODELING) AND MEASURING CONSUMER BEHAVIOR

THE CRM PRINCIPLE

Strategies That Leverage Off the Knowledge of Consumer Behavior

Getting Back to Managing the Customer

Allocation of Resources Toward Profitable Consumers

PITFALLS OF INFORMATION ECONOMICS: EXTERNALITIES OF CORPORATE PRODUCTIVITY

A WORD ON PRIVACY

A Word on the Quality of Service and the Potential for Preferential Treatment

Less Leisure Time for the Consumer

Extending CRM to the Employee (Call It Human Capital Management)

THE CHANGING STRUCTURE OF THE MARKETPLACE: INFORMATION TECHNOLOGY THAT FACILITATES MARKET TRANSACTIONS

THE QUEST FOR INCREASED EFFICIENCY THROUGH THE DEVELOPMENT OF INFOMEDIARIES OR ON-LINE EXCHANGES

The Economics Behind On-line Exchanges

Advantages from a Supplier's and a Purchaser's Perspective

THE DANGERS OF IGNORING TRADITIONAL ECONOMICS IN THE NEW ECONOMY

9 The Information Bubble

THE PROSPEROUS BOOM IN STOCKS

THE INFORMATION TECHNOLOGY EFFECT ON THE INDIVIDUAL INVESTOR

MACROECONOMIC EVENTS THAT TOOK THEIR TOLL ON STOCKS

Information Technology Saturation

The Integration of Financial and Economic Forces That Created and Destroyed the Bubble.

NOTEWORTHY BUBBLES AND OVERVALUATIONS OF THE PAST

Growth Stocks and New Technologies

The Great Japanese Land and Equity Bubble

The High Growth Years of the 1980s

The Savings and Investment Impact

The Bubble Effect

WHAT IS IN STORE FOR THE FUTURE?

10 Micro Productivity and Macro Implications

SOFTWARE IN THE ECONOMY

INFORMATION TECHNOLOGY AND U.S. LABOR

INFORMATION TECHNOLOGY AND GLOBALIZATION

Free Trade and Multinational Activity

Global Proliferation of Information Technology

IT Specific Factors from an International Perspective

A Closer Look at the Wireless World

Guidelines for All Nations to Consider in the Information Economy

Appendix A: Empirical Results for Translog Analysis of Firm-Level Production Functions

NOTE

Appendix B: Empirical Results for Translog Analysis of IT Intensity Industry Sectors

Numbers for Empirical Work

Glossary of Information Technology Terms

Selected Bibliography

Index

About the Authors.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Includes bibliographical references (p. [225]-230) and index.

ISBN:

9798400670275

9786610913718

9781280913716

1280913711

9780313006845

0313006849

OCLC:

614595622