• KSII Transactions on Internet and Information Systems (TIIS)
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• v.9 no.1
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• pp.466-482
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• 2015

IT is the key enabler of digital economy. Appropriate usage of IT can provide a strategic competitive advantage to a firm in a dynamic competitive environment. However, there has been a continuing debate on whether IT can actually enhance the productivity of firms. This concept is called IT productivity paradox. In this study, we analyzed the causality among appropriate indicators to demonstrate the real impact of IT on productivity. The 12,100 sample data from 2011 were used for analysis. As expected, the results indicated that mobile device usage, website adoption, e-commerce, open source, cloud computing, and green computing positively influence IT productivity. This unprecedented large-scale analysis can provide clarification regarding the ambiguous causal mechanism between IT usage and productivity.

• Journal of Korea Technology Innovation Society
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• v.6 no.3
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• pp.328-344
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• 2003

This paper is aimed at analyzing the effect of Information Technology (IT) investment on the output growth and Total Factor Productivity (TFP) of Korean stock industry. Data on 24 stock firms for the eleven years (1991-2001) are used for the analysis. It is identified that there are both direct and indirect impacts of IT investment of the Korean stock industry on output growth. The total effect on output growth is 1.34 percentage point per year, which divided into a direct effect of investment in IT on the output growth is 1.97 and an indirect effect on the TFP is -0.63 percentage points per year. Results show that IT investment cannot contribute to increased stock industry productivity. Therefore, the Korean stock industry has not benefited from increased investment on IT in increasing productivity, implying the so-called productivity paradox has existed during the period.

• Journal of Agricultural Extension & Community Development
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• v.17 no.4
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• pp.933-955
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• 2010

Researchers have different views on impact of information system use on productivity. The differences are fueled by 'the productivity paradox' insisted by Brynjofsson(1993). This paper intend to quantitate impacts of information system and to test the productivity paradox of using the information system. Restricted Maximumlikelihood Estimation(RMLE) method is applied on data from 81 farms adopting Pigplan system. The results find positive productivity improvement with information systems in swine farm. Adopting Pigplan system increases 0.52 in PSY(pigs per sow per year) and 0.087 in sow turnover. When it comes to region and farm size, region has impact on both PSY and sow turnover, while farm size does not. This result infers that local cooperatives, regardless of farm size, differentiate the impacts of the information system, implying that the ability to utilize information systems should be improved in organizational level.

• Journal of Korea Technology Innovation Society
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• v.9 no.3
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• pp.606-625
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• 2006

This Study is to show the impact of IT capital stock accumulation on the total factor productivity in 9 industries during 1980 through 2000. We construct the If capital stock using input and output table provided by Bank of Korea (2000). Using sequence testing methodologies, we investigate the nonstationary characteristics of the relevant data and test the cointegration relationship between total factor productivity and IT capital stock. Over the past two decades, IT capital stock contributed between 0.19 to 0.07 percentage point per IT capital stock on total factor productivity. Our empirical results, therefore, do not support Solow's IT paradox in using the long period panel data case in Korea.

• International Commerce and Information Review
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• v.14 no.2
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• pp.271-293
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• 2012

As service industry became more important, many of studies have been done on the role of service. Such studies has been researched focusing on the relationship between the service intensity in the economy and a country's productivity. Baumal(1967) suggested that service growth in economy would bring about decrease in productivity. However, the economy of developed countries encounter with the productivity growth as their economy grows, which phenomenon called Baumol's paradox. Oulton (1999, 2001) find out the reason of Baumol's paradox in a forward and backward chain effects. So, this paper is aimed at verifying the theory of Oulton (1999, 2001) for 13 OECD countries using panel data analysis. We find out that the intermediate knowledge-intensive service inputs cause a multifactor productivity growth.

• Knowledge Management Research
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• v.17 no.1
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• pp.49-72
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• 2016

Extant research on firm innovation productivity is limited in measuring the innovation productivity, in which they measured firm innovation productivity by using either inputs or outputs of innovation. The present study complemented the extant research by employing Data Envelopment Analysis (DEA) approach to measure firm innovation productivity. Furthermore, this paper examined the effects of firms' external knowledge search, as one of open innovation practices, on firm innovation productivity, for open innovation activities are regarded as an influencing factor on firm innovation productivity in the previous literatures. Using the data of the Korean Innovation Survey (KIS) of manufacturing industries conducted in 2008, this study developed hypotheses in which we considered not only two dimensions of external knowledge search (breadth and depth) but also two subtypes of external knowledge search (market-driven and science-driven). The results found that searching deeply and market-driven search are positively related to firm innovation productivity, but science-driven search is somewhat negatively related to firm innovation productivity. Furthermore, market-driven search can mitigate the negative effect of science-driven search on innovation productivity.

• Journal of the Korean Operations Research and Management Science Society
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• v.30 no.4
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• pp.15-25
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• 2005

As implied by the terms of IT productivity Paradox, measuring the Information technology contribution to economic performance has been one of the challenging issues to both policy makers and business professionals. As such, diverse attempts with sophisticate analyses have been reported in the literature to analyze the effect of IT contributions. In this paper, we follow Growth Accounting Method to measure the IT contribution effect to manufacturing firm's economic performance in Korea. Various regression methods and statistical analyses are applied with fourteen years of industry Panel data. Using the Cobb-Douglas function, time lag analysis is made to understand IT effect to economic growth. Instead of capturing data from individual firm, industry level data from the National Statistics Bureau is used for IT capital, non-IT capital, and so on. Statistical analysis following the panel unit test and Panel co-integration test was performed to reveal the exact effect of IT contribution to economic performance. Empirical testing results for non-stationary nature of IT investment effect are reported as well as IT contribution to manufacturing industry's economic performance.

• Journal of Korean Society for Quality Management
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• v.31 no.4
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• pp.203-218
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• 2003

The ongoing debate over IT productivity has revealed paradoxical effects of IT. This study proposes that IT business value is paradoxical structured. IT impacts are not easy to generalize according to one perspective or paradigm. This study assumes multiplicity in the phenomenon of IT value and explores effects of these multiple interpretations. The study seeks to understand organizational performance. Hypotheses are developed to test the relationship between competing interpretations of IT value and organizational performance. The purpose of this study is to determine whether or not senior managers perceive IT value on the basis of divergent managerial value frames.

• Journal of Information Technology Application
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• v.3 no.2
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• pp.25-48
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• 2001

This Study intends to Investigate the economic impact of information technology investment. Six countries in OECD are selected and analyzed to understand the empirical relationship between informatization level and productivity Correlation test and regression analysis are executed, using macro data concerning informatization index, total factor productivity and real output per worker hour The impact of informatization level on productivity is characterized by the time lag effect which is used to explain the productivity paradox in precedent studies. Empirical analysis shows that the higher informatization level and information intensity, the lower time lag effect. The result indicates that IT investment has characteristic as sunk cost and the economic impact is appeared after a certain period of time.

• International Area Studies Review
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• v.15 no.2
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• pp.125-150
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• 2011

As the economy grows, there is a concern that the economic development causes a productivity reduction because of the service intensive growth. However, the economy of developed countries encounter with the productivity growth as their economy grows, which phenomenon called Baumol's paradox. Oulton (1999, 2001) find out the reason of Baumol's paradox in a forward and backward chain effects. So, this paper is aimed at verifying the theory of Oulton (1999, 2001). Moreover, we test the difference effect between a consumer service and producer service input using a dummy variable. We use the Input-Output Table (1990, 1995, 2000, 2005) that is offered by the Bank of Korea to accomplish the purpose of our research that is represented above. We find out that the Korea's intermediate producer service inputs cause a multifactor productivity growth. That result is matched with the Oulton (1999, 2001)'s theory. But, the intermediate consumer service inputs don't have a significant effect on a multifactor productivity. The result of verifying the effect of intermediate producer service inputs among industries shows that the effects on manufacture industries are less than other industries.