Data Envelopment Analysis Journal > Vol 2 > Issue 2

New Information Technology Implementation and Workplace Productivity

Soonchul Hyun, Haskayne School of Business, University of Calgary, Canada,
Suggested Citation
Soonchul Hyun (2017), "New Information Technology Implementation and Workplace Productivity", Data Envelopment Analysis Journal: Vol. 2: No. 2, pp 113-139.

Published: 27 Sep 2017
© 2017 S. Hyun
Performance measurement,  Productivity measurement and analysis,  Technology Management and Strategy
Workplace productivityNew IT implementationOrganizational streamliningComplementarityTwo-stage DEA

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In this article:
1. Introduction
2. Background and Hypotheses
3. Data and Variable Measurement
4. Estimation Model
5. Empirical Results
6. Conclusion


In this study, I apply two-stage data envelopment analysis (DEA) to investigate the short-term effects of new information technology (IT) on workplace productivity. I use data from Statistics Canada to estimate workplace operating efficiency based on a variety of labor inputs and non-labor operating costs. In the second stage, I relate operating efficiency to new IT implementation and organizational streamlining. I find that the beneficial effects of new IT occur relatively quickly, but that organizational streamlining has an initial disruptive effect before beneficial effects are realized. I also find evidence of complementarity between new IT and organizational streamlining.