INFORMATION TECHNOLOGY INVESTMENT AND MANUFACTURING WORKER PRODUCTIVITY

In 1987, Nobel laureate Robert So low cynically commented about the ubiquity of computers except in the productivity statistics. Since then, economists and management researchers have debated over whether IT matters in improving firm performance and the economy. For years, IT effects have been examined from largely three streams: macro perspective (the entire economy), micro perspective (firm) and a middle ground approach (industry). Industry level studies, however, appear to be less clear than those studies at macro- or micro- levels. This study examines the association of IT investment with manufacturing worker productivity at the industry level using a panel dataset of 322 six-digit NAICS industries over the period 2002-2008. Results show that IT investment has contributed to the improvement of manufacturing worker productivity across several measures.