The substitution of information technology for other factors of production: a Firm Level Analysis
Management Science - Special issue: Frontier research on information systems and economics
IT capabilities: theoretical perspectives and empirical operationalization
ICIS '99 Proceedings of the 20th international conference on Information Systems
Information and Management
Communications of the ACM
Information technology and economic performance: A critical review of the empirical evidence
ACM Computing Surveys (CSUR)
IT outsourcing evolution---: past, present, and future
Communications of the ACM - Wireless networking security
Information Technology and Productivity: Evidence from Country-Level Data
Management Science
Industry Level Supplier-Driven IT Spillovers
Management Science
A sender-receiver framework for knowledge transfer
MIS Quarterly
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This paper examines the effects of IT-related spillovers on firm-level productivity improvements over a long-term horizon. In contrast, prior research has largely focused on the direct and contemporaneous impacts of IT investments. As a result, we do not fully understand how IT investments are associated with ongoing productivity improvements in future periods and how spillovers influence these gains. In this paper, we examine whether firms receive incremental benefits from IT-related spillovers and whether these spillovers lead to more persistent returns. We focus on the spillovers that accrue to firms from their interindustry transactions, especially the IT services industry. We model and estimate the impact of spillovers on long-run productivity using firm-level data from the manufacturing, transportation, trade, and services sectors. We find that spillover impacts are highly significant, but that the magnitude and persistence of the impacts vary. Firms with high IT intensity receive greater spillover benefits from the IT services industry. Moreover, these benefits are sustained over a long-term horizon. However, the impact of IT-related spillovers does not persist in low IT intensity firms regardless of the source. Overall, our results shed light on the existence and sources of IT-related spillovers and on their important role in shaping the long-run returns to IT investment. Our results also help explain the findings of excess returns to IT investment in the IT productivity literature.