Information Technology (henceforth IT) on firms' productivity; b) analysis of the main organizational changes ... 2 For a more sceptical view of the "productivity revival", see Gordon 2000. ... The variables refer to the year 2000. Our paper ..... measure IT adoption on a four-point scale depending on the degree of use of IT tools.
Understanding the Determinants of Information Technology Adoption. Evidence from Italian Manufacturing Firms Anna Giunta and Francesco Trivieri University of Calabria, Italy Discussion paper n. 38, 2004 Department of Economics and Statistics University of Calabria This draft, June 26, 2004
Abstract Our empirical study aims at identifying the determinants of Information Technology adoption by small and medium sized Italian manufacturing firms (0 IT/TOTINV TRAD SS SB SI TURNOVER * EMPLOYEES HUCA EXPORT SUBCONTR OUTSOURC VA * VI
0.244 0.434 0.133 0.088 0.346 4,022.7 22.220 0.431 0.144 0.091 0.003 1,473.8 0.472
OBSERV. IT=0
6,774 6,774 6,774 6,774 6,774 6,774 6,774 6,774 6,774 6,774 6,774 6,774 6,774
0.000 0.565 0.094 0.076 0.264 1,001.4 7.800 0.142 0.055 0.196 0.005 383.2 0.568
5,156 10,100 10,100 10,100 10,100 10,100 10,100 10,100 10,100 10,100 10,100 10,100 10,100
*In thousands of Euros. IT=Investments in Information Technology; IT/TOTINV= Investments in IT on Total Investments; TRAD=traditional sectors (percentage of firms); SS= specialised suppliers sectors (percentage of firms); SB= science based sectors (percentage of firms); SI= scale intensive sectors (percentage of firms); EMPLOYEES= Total employees; HUCA= percentage of firms which carried out staff training; Export = Exports /Sales; SUBCONTR = subcontracting sales/total sales; OUTSOURC = expenditure for information technologies services on total production costs; VA= value added; VI= Vertical Integration (value added on TURNOVER)
25
TABLE 5 DESCRIPTION OF VARIABLES GROUP OF VARIABLES
STRUCTURAL CHARACTERISTICS
VARIABLE
DESCRIPTION
TRAD
Dummy =1 if firms belong to the traditional sectors and zero otherwise.
SS
Dummy =1 if firms belong to the specialised suppliers sectors and zero otherwise.
SB
Dummy =1 if firms belong to the science based sectors and zero otherwise.
SI
Dummy =1 if firms belong to the scale intensive sectors and zero otherwise.
NW
Dummy =1 if firms are located in the North-West and zero otherwise.
NECE
Dummy =1 if firms are located in the North-East or in the Center regions and zero otherwise.
SOUTH
Dummy =1 if firms are located in the South and zero otherwise.
SIZE [1-2]
Dummy=1 if firms have 1-2 employees and zero otherwise
SIZE [3-9]
Dummy=1 if firms have 3-9 employees and zero otherwise
SIZE [10-19] Dummy=1 if firms have 10-19 employees and zero otherwise SIZE [20-49] Dummy=1 if firms have 20-49 employees and zero otherwise SIZE [50-99] Dummy=1 if firms have 50-99 employees and zero otherwise
ORGANIZATIONAL VARIABLES
AGE
2000 - firm’s year of establishment
BLU
Blue collars on total employees
HUCA
Dummy =1 if firms carried out staff training in 2000 and zero otherwise.
INT R&D
Dummy =1 if firms carried out internal R&D activity and zero otherwise
EXT R&D
Dummy =1 if firms carried out external R&D activity and zero otherwise
INNO PD
Dummy =1 if firms carried out product innovation activity and zero otherwise
INNO PRC
Dummy =1 if firms carried out process innovation activity and zero otherwise
COLL
Dummy =1 if firms co-operated with other firms and zero otherwise
SUBCONTR Turnover deriving from subcontracting/Total turnover
PERFORMANCE VARIABLES
EXPORT
Exports /sales
LBC
Personnel expenditure/Employees
GROWTH
(Employees2000 – Employees1999)/Employees1999
26
TABLE 6A ORDERED ESTIMATION OF ITA MODEL 1
MODEL 2
MODEL 3
MODEL 4
MODEL 5
MODEL 6
0.12982
0.12998
0.15081
0.17247
0.16698
0.16698
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
SB
0.34970
0.34975
0.39084
0.41338
0.40980
0.40980
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
SI
0.17651
0.17660
0.20815
0.20661
0.21323
0.21323
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
NECE
0.01128
0.01128
0.00060
0.00098
-0.00002
0.47670
0.47680
0.97110
0.95150
0.99880
SOUTH
-0.03954
-0.03940
-0.05111
-0.04500
-0.04424
0.05930
0.06020
0.01950
0.03680
0.04000
0.02080
SIZE [3-9]
0.52440
0.52413
0.88253
0.89922
0.90595
0.90595
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
SIZE [10-19]
0.91423
0.91393
1.28732
1.30317
1.32452
1.32452
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
SIZE [20-49]
1.17265
1.17227
1.53806
1.54813
1.57861
1.57861
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
SIZE [50-99]
1.28272
1.28294
1.63805
1.63898
1.67180
1.67180
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
BLU
-0.65251
-0.65266
-0.26258
-0.28653
-0.26819
-0.26819
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
HUCA
0.24725
0.24738
0.28165
0.28285
0.31722
0.31722
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
INT R&D
0.18247
0.18242
0.21093
0.29631
0.36910
0.36910
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
EXT R&D
0.25108
0.25107
0.28882
0.32390
0.35278
0.35278
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
INNO PD
0.27891
0.27873
0.30353
0.00000
0.00000
0.00000
INNO PRC
0.13771
0.13774
0.13260
0.00000
0.00000
0.00000
0.00000
0.15636
0.15652
0.16948
0.18310
0.20226
0.20226
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
SUBCONTR
-0.41717
-0.41728
-0.46875
-0.48140
-0.49074
-0.49074
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
EXPORT
0.51220
0.51240
0.55289
0.57605
0.58171
0.58171
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
LBC
0.07182
0.07186
0.00000
0.00000
AGE
-0.00003
GROWTH
-0.00004
µ (1) *
0.81587
0.81594
0.83237
0.82223
0.81809
0.81809
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
1.49834
1.49850
1.53368
1.50798
1.49801
1.49801
SS
COLL
-0.04422
0.24604
0.80280 0.69650
µ (2) *
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
Num. of obs. Log likelihood
16,874 -17789.03
16,874 -17789.16
16,874 -17989.42
16,874 -18080.04
16,874 -18165.31
16,874 -18165,31
BIC AIC
-128431.9 2.1113
-128451.1 2.1111
-128060.3 2.1347
-127888.8 2.1453
-127728.0 2.1553
-127737.7 2.1552
NOTE: Intercept coefficients are not given P value of the Z statistic in cursive BIC = Bayesian Information Criterion; AIC = Akaike’s Information Criterion
27
TABLE 6B MARGINAL EFFECTS FOR ORDERED PROBIT MODEL MODEL 6 ITA=0
ITA=1
ITA=2
ITA=3
SS
-0.0523
-0.0291
0.0266
0.0548
SB
-0.1284
-0.0713
0.0653
0.1345
SI
-0.0668
-0.0371
0.0340
0.0700
SOUTH
0.0139
0.0077
-0.0070
-0.0145
SIZE [3-9]
-0.2839
-0.1576
0.1443
0.2972
SIZE [10-19]
-0.4151
-0.2304
0.2109
0.4346
SIZE [20-49]
-0.4947
-0.2746
0.2514
0.5179
SIZE [50-99]
-0.5239
-0.2908
0.2663
0.5485
BLU
0.0841
0.0467
-0.0427
-0.0880
HUCA
-0.0994
-0.0552
0.0505
0.1041
INT R&D
-0.1157
-0.0642
0.0588
0.1211
EXT R&D
-0.1106
-0.0614
0.0562
0.1157
COLL
-0.0634
-0.0352
0.0322
0.0664
SUBCONTR
0.1538
0.0854
-0.0782
-0.1610
EXPORT
-0.1823
-0.1012
0.0926
0.1909
28
TABLE A1 SUMMARY STATISTICS, FULL SAMPLE,2000
IT * IT/TOTINV IT per EMPL. * IT/WhC * PC MAIL WEB TRAD SS SB SI NW NE CENTER SOUTH TURNOVER * EMPLOYEES BLU WHC HUCA EXPORT SUBCONTR AGE OUTSOURC GROWTH R&D INT R&D EXT R&D INNO INNO PD INNO PRC COLL VA * LABCOST * VI
MEAN
STD.DEV
MINIMUM
MAXIMUM
OBSERVATIONS
6.158 0.139 0.327 0.935 0.743 0.503 0.280 0.512 0.110 0.081 0.297 0.308 0.274 0.223 0.195 2,214 13.589 0.453 0.547 0.258 0.090 0.154 17.283 0.004 0.227 0.125 0.113 0.019 0.284 0.205 0.214 0.125 825 13.2 0.529
49.59 0.259 1.662 6.466 0.437 0.500 0.449 0.500 0.313 0.272 0.457 0.462 0.446 0.416 0.396 5,180 18.041 0.344 0.344 0.438 0.213 0.343 16.782 0.017 1.063 0.330 0.316 0.135 0.451 0.404 0.410 0.331 1,949.7 11.2 0.312
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.165 0.600 0.000 0.011 0.000 0.000 0.000 0.000 0.000 -0.978 0.000 0.000 0.000 0.000 0.000 0.000 0.000 -1,190 0.000 -5.575
5,149 1.000 103,4 472,3 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 100,616 99.600 0.989 1.000 1.000 1.000 1.000 93.00 0.729 20.05 1.000 1.000 1.000 1.000 1.000 1.000 1.000 53,273 111.0 3.422
16,874 11,930 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,807 16,874 16,799 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16,874 16.874 16,874
* In thousands of Euros. IT= Investments in Information Technology; IT/TOTINV= Investments in IT on Total Investments; PC= percentage of firms having one or more personal computers; MAIL= percentage of firms with PCs and e-mail address; WEB= percentage of firms with PCs, e-mail address and web site; TRAD= traditional sectors (percentage of firms); SS= specialised suppliers sectors (percentage of firms); SB= science based sectors (percentage of firms); SI= scale intensive sectors (percentage of firms); NW= North-West regions of Italy (percentage of firms); NE=North-East regions of Italy (percentage of firms); CENTER = regions in the Center of Italy (percentage of firms); SOUTH= regions in the South of Italy (percentage of firms); EMPLOYEES= Total employees; BLU= blue collars out of employees; WhC= white collars out of employees; HUCA= percentage of firms which carried out staff training; Export = Exports /Sales; SUBCONTR = subcontracting sales/total sales; AGE=2000-firm’s year of establishment; OUTSOURC = expenditure for information technologies services on total production costs; R&D= percentage of firms which carried out Research and Development activity. INT R&D= internal R&D; EXT R&D= external R&D; INNO= percentage of firms which carried out Innovation activity: PD= Product Innovation, PRC= Process Innovation; COLL= percentage of firms which co-operate with other firms; VA= value added; LABCOST= total expenditure on salary on employees; VI=Vertical Integration (value added on TURNOVER).
29
TABLE A2 CORRELATION MATRIX ITA
SS
SB
SI
NECE SOUTH SIZE [3- SIZE SIZE [20- SIZE 9] [10-19] 49] [50-99]
BLU HUCA
INT R&D
EXT R&D
INNO INNO COLL SUB- EXPORT LBC PD PRC CONTR
AGE GROWTH
ITA
1.000
SS
0.074 1.000
SB
0.067 -0.104 1.000
SI
0.136 -0.228 -0.193 1.000
NECE
0.026 -0.009 -0.002 -0.076 1.000
SOUTH
-0.058 -0.010 -0.004 -0.009 -0.488
SIZE [3-9]
-0.046 0.001 -0.011 0.007 -0.003 -0.039
1.000
SIZE [10-19]
0.218 0.003 -0.032 0.036 0.020
-0.063
-0.309
1.000
SIZE [20-49]
0.314 0.031 -0.030 0.039 0.023
0.019
-0.242
-0.219
1.000
SIZE [50-99]
0.250 0.038 -0.012 0.045 0.025
-0.018
-0.151
-0.137
-0.107
1.000
BLU
0.408 0.035 -0.138 0.059 0.038
-0.018
0.111
0.364
0.322
0.195
1.000
HUCA
0.424 0.084 0.034 0.084 0.039
-0.047
-0.076
0.117
0.246
0.251
0.292 1.000
INT R&D
0.335 0.079 0.089 0.027 0.041
-0.045
-0.084
0.036
0.163
0.242
0.129 0.351
1.000
EXT R&D
0.130 0.026 0.049 0.010 0.013
-0.014
-0.015
0.014
0.054
0.069
0.029 0.124
0.108
INNO PD
0.390 0.101 0.093 0.036 0.014
-0.018
-0.054
0.081
0.169
0.181
0.167 0.321
0.467
0.143
1.000
INNO PRC
0.366 0.032 0.006 0.081 0.018
-0.019
-0.078
0.107
0.200
0.201
0.257 0.354
0.368
0.103
0.556 1.000
COLL
0.191 0.057 0.037 0.016 0.026
-0.013
-0.018
0.037
0.079
0.084
0.077 0.192
0.182
0.080
0.195 0.172 1.000
SUBCONTR
-0.247 -0.065 -0.048 -0.091 0.099
-0.111
0.037
-0.023
-0.074
-0.072 -0.018 -0.118 -0.118 -0.047 -0.157 -0.111 -0.034
1.000
EXPORT
0.297 0.054 -0.017 -0.018 0.041
-0.095
-0.076
0.059
0.155
0.205
0.178 0.152
0.217
0.090
0.223 0.172 0.064
-0.144
1.000
LBC
0.587 0.076 -0.042 0.148 0.027
-0.095
-0.034
0.325
0.385
0.340
0.659 0.435
0.300
0.123
0.309 0.330 0.144
-0.146
0.274
1.000
AGE
0.091 -0.021 -0.036 0.024 0.005
-0.082
-0.044
0.051
0.094
0.107
0.107 0.064
0.030
0.005
0.034 0.054 0.003
-0.046
0.068
0.187 1.000
GROWTH
0.082 0.021 0.007 0.019 0.011
-0.022
0.029
0.057
0.044
0.027
0.114 0.053
0.027
0.030
0.045 0.048 0.021
-0.023
0.023
0.086 -0.007
1.000
30
1.000
1.000
