Firm Size and the Characteristics of Computer Use

Although researchers have examined the differences between managing large and small businesses, few studies have explored these differences in terms of managing the use of computers. Nearly all of the important MIS research is being conducted in large organizations. The results of these research efforts may not apply to smaller firms if their MIS environments are indeed different. Thus, the present focus of most MIS research may be missing the needs and problems of thousands of small business users. Several MIS articles suggest that smal I businesses face unique problems in the management of their computer resources, but thus far the evidence cited is anecdotal. Few research efforts have studied this issue scientifically. This study tests the contention that small businesses use computers differently than large businesses by examining a sample of Los Angeles manufacturing firms of various sizes

Firm Capabilities, Competition and Industrial Policies in a History-Friendly Model of the Computer Industry

In this paper, we explore some problems that industrial policy faces in industries characterized by dynamic increasing returns on the basis of a 'history friendly model' of the evolution of the computer industry. How does policy affect industry structure over the course of industry evolution? Is the timing of the intervention important? Do policy interventions have indirect and perhaps unintended consequences on different markets at different times? We focus on two sets of policies: antitrust and interventions aiming at supporting the entry of new forms in the industry. The results of our simulations show that, if strong dynamic increasing returns are operative, both through technological capabilities and through customer tendency to stick with a brand, there is little that antitrust and entry policy could have done to avert the rise of a dominant firm in mainframes. On the other hand, if the customer lock in effect had been smaller, either by chance or through policies that discouraged efforts of firms to lock in their customers, the situation might have been somewhat different. In the first place, even in the absence of antitrust or entry encouraging policies, market concentration would have been lower, albeit a dominant firm would emerge anyhow. Second, antitrust and entry encouraging policies would have been more effective in assuring that concentration would decrease. The leading firm would continue to dominate the market, but its relative power would be reduced. © Elsevier Science B.V

Taking services seriously: how policy can stimulate the 'hidden innovation' in the UK’s services economy

Policy could have an important role in stimulating innovation in services. However, policymakers have lacked robust evidence showing how these sectors innovate. Drawing on a survey of more than 16,000 firms, this research reveals the high levels of ‘hidden innovation’ in some services sectors, especially in how they develop new business models and exploit technology. But the research also reveals that innovation is confined to a minority of service firms, and that many lack the skilled personnel or intelligence on markets and technology that would enable them to become more innovative. Because of their dominance in the economy, improved performance by the UK’s services sectors is necessary if we are to significantly close the productivity gap between the UK and other leading nations. However, if we are to take innovation in services seriously, we must recognise that they innovate differently from advanced manufacturing. We need policies to support increased training and development, and the effective dissemination and exploitation of technology

Understanding the Demand Side of the Low-Wage Labor Market

Presents findings from a survey of employers on their less-skilled labor needs: who hires whom and how; with what requirements, wages, benefits, results, and factors for promotion; and what policies would help job seekers without a college education

Competitive, but too small - productivity and entry-exit determinants in European business services

The paper investigates whether scale effects, market structure, and regulation determine the poor productivity performance of the European business services industry. We apply parametric and nonparametric methods to estimate the productivity frontier and subsequently explain the distance of firms to the productivity frontier by market characteristics, entry- and exit dynamics and national regulation. The frontier is assessed using detailed industry data panel for 13 EU countries. Our estimates suggest that most scale advantages are exhausted after reaching a size of 20 employees. This scale inefficiency is persistent over time and points to weak competitive selection. Market and regulation characteristics explain the persistence of X-inefficiency (sub-optimal productivity relative to the industry frontier). More entry and exit are favourable for productivity performance, while higher market concentration works out negatively. Regulatory differences also appear to explain part of the business services' productivity performance. In particular regulation-caused exit and labour reallocation costs have significant and large negative impacts on the process of competitive selection and hence on productivity performance. Overall we find that the most efficient scale in business services is close to 20 employees and that scale inefficiencies show a hump-shape pattern with strong potential scale economies for the smallest firms and diseconomies of scale for the largest firms. The smallest firms operate under competitive conditions, but they are too small to be efficient. And since this conclusion holds for about 95 out of every 100 European business services firms, this factor weighs heavily for the overall productivity performance of this industry

COMPUTER ADOPTION PATTERNS OF U.S. SMALL BUSINESSES

This paper analyzes computer adoption patterns of U.S. small businesses. First, the association between computer use and firm performance is investigated with a linear model while controlling for various characteristics of the firm and its owner. Then an ordered probit model is used to model small business computer adoption decision. And computer adoption portfolios are also analyzed at the end.Research and Development/Tech Change/Emerging Technologies,

The impact of computer use, computer skills and computer use intensity: evidence from WERS 2004

Computers and ICT have changed the way we live and work. The latest WERS 2004 provides a snapshot of how using ICT at the workplace has changed our working lives. Various studies have suggested that the use of a computer at work boosted earnings by as much as 20%. Others suggest this reported impact is due to unobserved heterogeneity. Using excellent data from the WERS employer-employee matched data we compare OLS estimates with those from estimations which include controls for establishments, industrial sectors and occupations and use control function, treatment effects models and Instrumental Variable estimation. We show that the results of OLS estimation grossly overestimate the return to computer use but that including occupation controls, reduces the return to between 3-10%. We explore the return on different IT skills and also find a return to the intensity of computer use as measured by the number of tasks a computer is used for