TY - JOUR
T1 - Performance evaluation of production of IT capital goods across OECD countries
T2 - A stochastic frontier approach to Malmquist index
AU - Chou, Yen Chun
AU - Shao, Benjamin
AU - Lin, Winston T.
N1 - Funding Information:
Winston T. Lin is a Professor of Operation Management and Strategy in the School of Management at the State University of New York at Buffalo. He received his B.A. from National Taiwan University and Ph.D. from Northwestern University. His current research interests are in production and operations management, information systems, business forecasting, and multinational finance. He has published more than eighty articles (sole- and co-authored) in leading journals and refereed proceedings, and co-authored two scholarly books. He has presented papers at more than seventy national and international conferences. He has received a Best Paper Award from the Multinational Finance Society, several research grants including a three-year grant and a two-year grant (co-sponsored by National Sun Yat-sen University in Taiwan) from the Chiang Ching-Kuo Foundation for International Scholarly Exchange (USA) and grants from the Pacific Cultural Foundation, and an Excellent Scholar/Sustained Achievement Award from The State University of New York at Buffalo.
Copyright:
Copyright 2012 Elsevier B.V., All rights reserved.
PY - 2012/12
Y1 - 2012/12
N2 - As integrated supply chains, ubiquitous computing, and mobile applications have become the backbone for conducting business nowadays, the economic significance of information technology (IT) is self-evident. In this paper, we study IT value from an unconventional perspective: the production of IT capital goods. Using the true fixed-effects model of translog stochastic production frontier, we evaluate the performance of IT industries for 19 Organization of Economic Cooperation and Development (OECD) countries over the period of 2000 to 2009. We examine the productivity growth of these IT industries based on the Malmquist index and further analyze these productivity patterns through technological change and efficiency change. Overall, these IT industries are found to enjoy greater productivity growth than other industries when compared with previous findings. Our results show that technological progress is the main driver of productivity growth for the IT industry, efficiency change has a negligible effect, and each country's IT industry exhibits a distinctive performance profile. Policy implications are drawn from our results and related issues are identified for future research. We also highlight the advance of research methodology used in the study that can account for measurement errors, random fluctuations, and unobserved heterogeneity commonly encountered in empirical information systems research.
AB - As integrated supply chains, ubiquitous computing, and mobile applications have become the backbone for conducting business nowadays, the economic significance of information technology (IT) is self-evident. In this paper, we study IT value from an unconventional perspective: the production of IT capital goods. Using the true fixed-effects model of translog stochastic production frontier, we evaluate the performance of IT industries for 19 Organization of Economic Cooperation and Development (OECD) countries over the period of 2000 to 2009. We examine the productivity growth of these IT industries based on the Malmquist index and further analyze these productivity patterns through technological change and efficiency change. Overall, these IT industries are found to enjoy greater productivity growth than other industries when compared with previous findings. Our results show that technological progress is the main driver of productivity growth for the IT industry, efficiency change has a negligible effect, and each country's IT industry exhibits a distinctive performance profile. Policy implications are drawn from our results and related issues are identified for future research. We also highlight the advance of research methodology used in the study that can account for measurement errors, random fluctuations, and unobserved heterogeneity commonly encountered in empirical information systems research.
KW - Industry analysis
KW - Information technology capital goods
KW - Malmquist productivity index
KW - Technical efficiency
KW - Technological progress
KW - Translog stochastic frontier
KW - True fixed-effects model
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U2 - 10.1016/j.dss.2012.05.003
DO - 10.1016/j.dss.2012.05.003
M3 - Article
AN - SCOPUS:84868636780
SN - 0167-9236
VL - 54
SP - 173
EP - 184
JO - Decision Support Systems
JF - Decision Support Systems
IS - 1
ER -