Article at a glance:
Many economists have long argued that good management, rather than more computing power, is the key to higher productivity. A new study of 100 manufacturing companies in the United States, the United Kingdom, Germany, and France shows that IT expenditures have little impact on productivity unless they are accompanied by improved management practices.
The take-away
Companies can significantly boost their productivity by improving their management practices, with or without an increase in IT spending.
This article includes the following exhibits:
- Exhibit: Good management's effect on total factor productivity