How Can ICT linked with Workplace Organization Raise Productivity?

No.241
October 2005
Research Fellow Kazunori Minetaki

1. The diffusion of ICT(Information and Communication Technology) has been shown to increase productivity through responsiveness to changes in workplace organization and human capital. As a general rule, however, overhaul of external relationships between firms, rather than internal corporate reform, has a greater effect on productivity. Specifically, changes in client companies' shares, terminating transactions with previous client companies on the stock-purchasing side, and opening new transactions are effective in increasing productivity.
2. It is conventionally argued that, linked with ICT, productivity can be increased by centralizing decision-making authority, subdividing decision-making authority, or flattening corporate structures. Regarding this view, however, empirical analysis did not provide a clear conclusion to support this claim.
3. Regarding reexamination of the boundaries and limits of job duties, even when integrated with ICT, no effect on increasing productivity can be seen.
4. Though business processes are becoming increasingly "paperless", linked with ICT, this trend alone does not have a significant effect on increasing productivity. If this is combined with responsiveness to human capital, however, an increase in productivity can be confirmed. This effect is particularly strong in regard to increasing the "paperlessness" of external transactions.

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