Coordination costs on firm size and productivity

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Reference no: EM132120192

The Impact of IT–Coordination Costs on Firm Size,and Productivity: Transaction Cost Perspective

Jengchung V. Chen, Bo-chiuan Su, and Timothy M. Hiele.

for this article please answer the question but must be read the paper after that answer the question?

Discuss the following based on the paper.

1. IT spending is critical to coordination costs, which in turn influence firm size as well as firm productivity. It is noteworthy that coordination costs are a fundamental link between IT spending and firm size, as well as between IT spending and firm productivity.

2. IT is becoming an important tool for business operations, which lead to increased revenues and profits, and simultaneously reduce the number of employees in a firm.

3. IT spending reduces both firm size and coordination costs, but fails to show any effect on firm productivity.

4. IT spending in IPI firms can only be transmitted through a reduction in coordination costs, which increases firm productivity

Reference no: EM132120192

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