Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
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Does R&D Mediate the Impact of ICT on Productivity through Knowledge Transfer?

  • Christina Y. Jeong (Carlson School of Management, University of Minnesota) ;
  • Sang-Yong Tom Lee (School of Business, Hanyang University)
  • Received : 2022.01.31
  • Accepted : 2022.07.19
  • Published : 2022.12.31
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Abstract

The information and communication technology (ICT) value creation process is inherently unobservable. In addition to the direct effect of ICT on productivity, some information or knowledge can create value through other knowledge activities. In this paper, we study the impact of ICT on productivity through R&D. We tested the mediating effect of R&D between ICT and productivity using panel data from 47 US industries from 1987 to 2013 from the Bureau of Labor Statistics. The results show that R&D partially mediates ICT and productivity. That is, ICT directly increases productivity, and some of its effects can be realized through R&D. Recipients who acquire knowledge through ICT have to interpret codified ideas and apply them to practice. The increased absorptive capacity that can be developed through R&D improves interpretation ability, allowing employees to share more complex ideas. Thus, ICT helps people to effectively communicate, but some information and knowledge can be realized and applied through R&D knowledge activities. This is the first study empirically examining the process of ICT value creation through R&D. It also provides practical guidelines for knowledge management, such as making decisions about ICT and R&D investments that are better done concurrently rather than individually to maximize their impact on productivity.

Keywords

Acknowledgement

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2020S1A3A2A02093277).

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