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IT Investment in Small and Medium Enterprises:
Paradoxically productive? Enrique Dans, Instituto de Empresa,
Madrid, Spain. Enrique.Dans@ie.edu
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ABSTRACT |
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Recent research has demonstrated the existence of a positive
relationship between IT investment and productivity in the context of large
firms. However, the validity of such relationship for small and medium
enterprises (SMEs) has not yet been established. The issue is of critical
importance for SMEs, which suffer a constant struggle for survival due to the
absence of slack resources and high competitive pressures. The present study
analyzes a sample of 1,700 SMEs from Spain using a sample selection model, and
examines several indicators of IT investment and their impact on productivity.
The results confirm for SMEs the positive relationship between IT investment and
productivity previously found in large firms: the so?called "productivity
paradox" does not hold true for SMEs either. KEYWORDS:
Small and medium enterprises, SME, Information technology investment,
Productivity Paradox, Production function.
ISRL Categories: DA0201, EI0205, EF04, EL03, EF07 |
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