Use Of Information Network And Organizational Productivity: Firm-Level Evidence In Korea

This paper studies the relationship between the use of various information networks and organizational productivity in Korean firms. To this end, first. the current firm-level usage panems of information networks are explained in the following network categories: (1) LAN (Local Area Network). (2) inter- and intra-firm networks, (3) various types of inter-firm networks, and (4) the Internet and intranet, Second, by deriving TFP (Total Factor Roductivity) from the baseline production function, which augments lT stock into otherwise standard one, the impact of various information networks is investigated. The results show that LAN, the Intemet and intranet have significant impacts on fm-level TFP, while inter-firm network does not. Also, the productivity of firm using the Internet is 8.5 percent higher than the firms using only LAN, and the productivity of firms using intranet is 43.6 percent higher than the firms using just the Internet.