Does information technology lead to smaller firms?
Management Science
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
Information Technology Effects on Firm Performance As Measured by Tobin's Q
Management Science
Clockspeed and Informational Response: Evidence From the Information Technology Industry
Information Systems Research
Industry Clockspeed: Measurement and Operational Implications
Manufacturing & Service Operations Management
Information Systems Research
Information and Management
Information technology and internal firm organization: an exploratory analysis
Journal of Management Information Systems - Special section: Strategic and competitive information systems
Limits to Value in Electronic Commerce-Related IT Investments
Journal of Management Information Systems
Strategic alignment of ERP implementation stages: An empirical investigation
Information and Management
An empirical study of IT as a factor of production: The case of Net-enabled IT assets
Information Systems Frontiers
Ways to improve pioneer new ventures' performance in the ICT industry
Telecommunications Policy
Information technology and productivity: Empirical evidence from the Chinese electronics industry
Information and Management
A structured methodology for assessing and improving e-services in digital cities
Telematics and Informatics
Does RFID improve firms' financial performance? an empirical analysis
Information Technology and Management
Productivity and Performance Effects of Business Process Reengineering: A Firm-Level Analysis
Journal of Management Information Systems
Journal of Management Information Systems
Information Technology and Intangible Output: The Impact of IT Investment on Innovation Productivity
Information Systems Research
Empirical research on information technology value
International Journal of Networking and Virtual Organisations
Banks and information technology: marketability vs. relationships
Electronic Commerce Research
How do competitive environments moderate CRM value?
Decision Support Systems
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Empirical research has revealed differences in the economic impact of information technology (IT) across industries. However, the source of these differences is unclear. In this study we analyze the role of the competitive environment in moderating the productive impact of information technology and regular capital. We focus on two important features of an industry's competitive environment: industry concentration and industry dynamism. Industry concentration is the degree to which the output of an entire industry is produced by a few firms and is considered an inverse proxy for industry competitiveness. Industry dynamism denotes change that is difficult to predict, measured as the deviation of industry sales from a trend line. We analyze the moderating impact of concentration and dynamism on the output elasticity of information technology and regular capital by estimating a production function using 5211 firm-year observations spanning the years 1987 to 1994. We find that the marginal product of IT is lower in more concentrated industries, while the opposite is true for regular capital. There is limited evidence that the marginal product of IT is higher in more dynamic industries, and strong evidence that the marginal product of regular capital is lower in more dynamic industries. Taken together, our results suggest that IT provides enhanced productivity impacts to firms in more competitive industries without any productivity loss in dynamic industries, in contrast to regular capital. The findings underscore the salience of inclusion of the competitive environment in studies of the productive impacts of information technology.