The Digital Business Ecosystem
Show Less

The Digital Business Ecosystem

Edited by Angelo Corallo, Giuseppina Passiante and Andrea Prencipe

By bringing together elements of a radical new approach to the firm based on a biological metaphor of the ecosystem, this unique book extends the limits of existing theories traditionally used to investigate business networks.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 11: Enabling the Flexible Enterprise – RFID and Smart Devices

Robert Laubacher


11. Enabling the flexible enterprise – RFID and smart devices Robert Laubacher INTRODUCTION During the 1980s, in the aftermath of the personal computer revolution, businesses substantially increased their investments in information technology (IT). Economists and management researchers expected that these higher levels of investment would lead to increases in economy-wide productivity and firm-level performance. But early studies found that IT investment was not associated with significant productivity gains. In the late 1980s, Nobel laureate Robert Solow characterized this puzzling development with a quip: ‘You can see the computer age everywhere but in the productivity statistics’ (Solow 1987). With the rise of the World Wide Web in the 1990s, business investment in IT continued to boom. Yet researchers continued to struggle in their efforts to show a link between IT spending and performance. Starting in the mid-1990s, MIT researchers Eric Brynjolfsson and Lorin Hitt produced a series of papers that examined data on both IT spending and organizational practices from a very large number of firms. Because their sample was substantially larger than the ones examined by prior researchers, Brynjolfsson and Hitt were able to demonstrate that IT had a significant impact on performance. But their work also showed that information technology alone, in the absence of changes in organizational practice, did not have much impact. It was only when firms combined these two factors in tandem that they enjoyed major increases in both profitability and stock market valuation (Brynjolfsson and Hitt 2000). Labour productivity in the US,...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.