Abstract
This study examines the impact of information technology (IT) spillovers from suppliers and customers on an industry's technical efficiency and evaluates how such impact is moderated by its IT intensity and supply chain relationships. We employ a two-stage stochastic production frontier approach to estimate the relationship between IT spillovers and technical efficiency in U.S. industries. The findings show that the benefits from suppliers' and customers' IT spillovers in improving technical efficiency are greater in more IT-intensive industries, in industries that are more dependent on suppliers or customers in their production, and in industries that are more concentrated than their suppliers.
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