Do training and development practices help in overcoming the “IT productivity paradox”? ICT investments and Labor Productivity
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2021-07-26
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en
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The goal of this research was to check what the influence of ICT investments would be on labor productivity and to check how this relationship would be influenced by training and development practices. This in order to contribute to the already existing debate within the literature about the proposed relationship between the variables. Within the literature, some researchers say that there is no relationship between investing in ICT and labor productivity and some who do say this relationship exists. To test this a quantitative analysis was conducted, based on data from the EMS (2018). The contribution of this research is twofold. First, no significant effect was found between ICT investments and labor productivity,
indicating that investing in ICT will not lead to an increase in labor productivity. Second, no significant effect was found on training and development practices on the relation between ICT investments and labor productivity. This indicates that training and development practices in combination with ICT investments do not result in higher labor productivity. An additional analysis showed that organizational innovation did result in a significant effect on labor productivity, and therefore, by implementing organizational innovation labor productivity will increase.
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Faculteit der Managementwetenschappen