Technology Use, Organisational Flexibility and Innovation : Evidence for Germany


Hempell, Thomas ; Zwick, Thomas


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URL: http://ub-madoc.bib.uni-mannheim.de/1131
URN: urn:nbn:de:bsz:180-madoc-11315
Document Type: Working paper
Year of publication: 2005
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L23 L22 O31 ,
Subject headings (SWD): Deutschland , Informationstechnik , Kommunikationstechnik , Innovation , Flexibilität
Abstract: This paper investigates to what extent the usage of information and communication technology (ICT) fosters innovation activities by facilitating more flexible organisational structures in firms. We distinguish between functional flexibility (the ability of workers to co-operate and take decentralised decisions) and numerical flexibility (the reduction of fixed costs, mainly due to outsourcing business processes). Our results from a large and representative data set of firms in Germany show that ICT use is associated with an increase in both types of flexibility but the implications for innovation activities differ. Functional flexibility is strongly positively associated with product innovations. In contrast, numerical flexibility allows firms to 'buy' innovations in the short run, but reduces innovative capacity in the longer run.
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