The Impact of Information Technology on Firm's Size and Productivity in U S : A Study of Coordination Costs as Mediating Effect

Abstract

There have been many changes in work place since 1975 by adopting IT (IT) in business The business value of IT has been discussed for a number of years among scholars by using 1980s~1990s dataset In this paper the primary goal is to access hypotheses that IT affects firm size and productivity mediated by coordination costs Previously it was proved that IT has negative relationship with firm size and also IT has positive relationship with productivity However these organizational change studies which are including Firm size and Firm productivity are never touched by IT value-experts at the same time Also since this study use recent firm-level data on IT spending by 381 firms from 2011 to 2013 it is assumed the results could be different from previous researches In present study Akaike Information Criterion (AIC) has been used for best fit model and autocorrelation multicollinearity heteroskedasticity and simultaneity are tested to make corrections and have better quality of data Moreover Ordinary Least Square (OLS) is used for regression analysis As a result it has been found that adoption of IT makes firm size smaller However the result says that IT investment is not related with productivity Moreover this research firstly has shown that there is no evidence that coordination costs are appropriate as mediation in the relationship between IT spending and Firm size

Date of Award	2014 Aug 24
Original language	English
Supervisor	Jeng-Chung Chen (Supervisor)