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Abstract:
This paper analyzes the relationship between investment in information and communication technologies (ICT), non-ICT-investment, labor productivity and workplace reorganization. Firms are assumed to reorganize workplaces if the productivity gains arising from workplace reorganization exceed the associated reorganization costs. Two different types of organizational change are considered: enhancement of group-work and the flattening of hierarchies. Empirical evidence is provided for a sample of 411 firms from the German business-related services sector.

A simultaneous econometric model for labor productivity and firms' decision to reorganize workplaces shows that changes in human resources practises do not significantly affect firms' output elasticities with respect to information and communication technologies, non-ICT-capital and labor. We also do not find significant differences in firms' returns to scale. The point estimates of the individual output elasticities and of the control variables for observable firm heterogeneity are, however, generally larger if workplace reorganization is realized. We therefore apply Kernel density estimation technique to demonstrate that the entire labor productivity distribution shifts out to the right if workplace reorganization takes place, indicating that workplace reorganization induces a significant increase in labor productivity. Significant differences in the productivity of ICT-capital and non-ICT-capital cannot be found.

workplace reorganization, ICT-investment, labor productivity, endogenous switching regression model, Kernel density estimation

Abstract:
Although in its infancy, one promising application of Internet technology for firms is so-called Internet commerce or electronic commerce. This paper analyses the determinants of B2B (business-to-business) adoption borrowing from the literature on the adoption of new technologies and considering factors like firm size, corporate status, human capital and international competitive situation. An ordered probit model is applied to a data set containing about 3,000 enterprises from the German manufacturing industry and the German services sector in the year 2000. We find positive and significant effects of firm size, the share of highly qualified employees and the export share. An IT-intensive production process enhances the probability of a broad use of B2B e-commerce. An important influence on the use of B2B is the bandwagon effect, implying that firms are more likely to use this new Internet application if others within the same industry likewise do it. We find no significant effects of firm age and of the fact that a firm belongs to a group of companies as measures of a firm's flexibility and financial power.

Abstract:
We implement an endogeneous switching-regression model for labour productivity and firms' decision to use business-to-business (B2B) e-commerce. Our approach allows B2B usage to affect any parameter of the labour productivity equation and to properly take account of strategic complementarities between the input factors and B2B usage. Empirical evidence from 1,394 German firms shows that firms using B2B e-commerce have a significantly higher output elasticity with respect to ICT-investment and produce significantly more efficiently than firms that do not use B2B. Firms' labour productivity is enhanced by using B2B.

Business-to-business e-commerce, labour productivity, endogenous switching regression model, survey data

Abstract:
The paper provides empirical evidence for the question whether firms' ITenabled labour productivity is affected by the age structure of the workforce. We apply a production function approach with heterogenous labour to firmlevel data from German manufacturing and services industries. We find that workers older than 49 are not significantly less productive than prime age workers, whereas workers younger than 30 are significantly less productive than prime age workers. Older workers using a computer are significantly more productive than older non-computer users. The positive and significant relationship between labour productivity and IT intensity is not affected by the proportion of older workers.

labour productivity, information technology, older workers