Productivity Paradox Research Articles

Protectionism or let go? Evidence from IT investment in Chinese manufacturing firms

ABSTRACT From a global perspective, economic and trade disputes between countries are gradually increasing. Under the influence of the COVID-19 epidemic and war, the competition among the countries has become more intense. Lower trade barrier for economic cooperation or trade protection is becoming a concerned topic for governments and researchers around the world. This study uses the IT investment data from Chinese manufacturing enterprises from 2015 to 2022 to test the impact of international competition on technological development under environmental heterogeneity. The research results show that the external environment has an important impact on the technology performance of enterprises. After the COVID-19 epidemic, the IT investment performance of enterprises shows a “productivity paradox” situation. Further research shows that reducing tariffs and introducing international competition will be conducive to the development and utilization of IT by enterprises, which is supported in different market environments. This study verified that lowering trade barriers and introducing international competition to achieve win–win cooperation is still an important method for economic and firm development.

How does data factor utilization stimulate corporate total factor productivity: A discussion of the productivity paradox

Stimulating total factor productivity through the utilization of data factors is a crucial concern for companies operating in the digital era. This study employs data from A-share listed firms from 2011 to 2022 to examine the impact and mechanisms of data utilization on corporate total factor productivity. The findings reveal that effective data utilization can significantly improve corporate total factor productivity, but no evidence supports the productivity dilemma. The stimulating effects are achieved by alleviating investment inefficiency and resource redundancy. Further analysis verifies that firms` financial performance and life cycle can lead to heterogeneous effects. Specifically, the positive impact is more pronounced in firms with lower operational performance and in periods of maturity and recession.

Development and Evaluation of Training Scenarios for the Use of Immersive Assistance Systems

Emerging assistance systems are designed to enable operators to perform tasks better, faster, and with a lower workload. However, in line with the productivity paradox, the full potential of automation and digitalisation is not being realised. One reason for this is insufficient training. In this study, the statistically significant differences among three different training scenarios on performance, acceptance, workload, and technostress during the execution of immersive measurement tasks are demonstrated. A between-subjects design was applied and analysed using ANOVAs involving 52 participants (with a statistical overall power of 0.92). The ANOVAs were related to three levels of the independent variable: quality training, manipulated as minimal, personal, and optimised training. The results show that the quality of training significantly influences immersive assistance systems. Hence, this article deduces tangible design guidelines for training, with consideration of the system-level hardware, operational system, and immersive application. Surprisingly, an appropriate mix of training approaches, rather than detailed, personalised training, appears to be more effective than e-learning or ‘getting started’ tools for immersive systems. In contrast to most studies in the related work, our article is not about learning with AR applications but about training scenarios for the use of immersive systems.

Fertilizer use and agricultural practices in the paradox of maize crop production and environmental sustainability

The enduring existence of pollution presents a substantial danger to human health, natural systems, and social welfare. Human activities mostly generate greenhouse gas emissions, namely carbon dioxide, which negatively impacts the environment. This study used annual datasets to examine the association between maize crop production, maize yield, fertilizer consumption, agricultural land use, and environmental quality in China. In order to identify the positive and negative shocks with the assessment of short- and long-run dynamics, the study used an asymmetric Nonlinear Autoregressive Distributed Lag (NARDL) approach. A Robust Least Squares method was also used to locate the parameters nexus in order to assess the series' robustness. Results from the long-run interaction indicate that the maize crop production and agricultural land use has a positive impact on CO2 emissions with probability values of (0.000), (0.000), and (0.001), (0.780), respectively, via both positive and negative interruptions. Additionally, maize yield exposed a detrimental effect on environmental quality. Results of the robust least squares analysis showed that maize crop production, fertilizer consumption, and agricultural land use had a positive influence on environmental quality, with probability values of (0.000), (0.004), and (0.949), respectively. However, there is an unfavourable relationship between variable maize yields and CO2 emissions. China should play a significant role in seeking to reduce carbon dioxide emissions and adopt the beneficial policies necessary to ensure the environment's long-term sustainability, since these emissions are now a rising issue around the world.

Productivity Paradox in Africa: Does Digitalization Foster Labor Productivity in African Economies?

AbstractHow the advancement of information and communications technologies (ICT) and digitalization affect labor productivity is subject of an ongoing debate. While parts of the literature find the expected positive effects, other studies have found no effect, resulting in the so-called productiviy paradox. As most of the studies have focused on economically advanced economies such as OECD countries, evidence for less developed economies has been sparse. We use a digitalization composite index from a balanced panel of 40 Sub-Saharan African (SSA) economies, using data from 2006 to 2021, to assess the effect of digitalization on aggregate labor productivity in SSA economies. We employ generalized least squares (GLS) and system generalized methods of moments (GMM) methods to capture the effects of digitalization on labor productivity levels in agriculture, manufacturing, and service sectors. Our results show a weak association between digitalization and overall labor productivity. However, when sectors are analyzed separately, digitalization has a positive effect on labor productivity in agriculture and manufacturing sectors, whereas we find evidence for the productivity paradox in the service sector, with even a negative effect of digitalization on labor productivity.

HOSPITAL INFORMATION SYSTEM

Abstract:- hospital information system (his) has evolved as an integration system of order entry systems, an administrative system, and departmental subsystems within a hospital. It has become more and more necessary for every health care staff in a hospital to use a computer terminal at almost everyday’s works. Under this circumstances, his is expected to provide the staffs with various, world-wide information for decision making and better communication environment which can be used just on the terminals for everyday’s works. The implementation of the hospital information system contributes to the hospital informationization construction and is an important part of China’s medical system reform. Informatization construction has been carried out in hospitals across the country, but high investment does not necessarily lead to outstanding performance results, and there is a paradox of IT productivity. This paper analyzes the influence mechanism of the hospital information system on doctors’ work performance from two aspects: personal perception of system and individual self-efficacy. Empirical studies have found that doctors’ perception of usefulness, perception system customization and self-efficacy have a significant positive impact on doctors’ job performance during the use of information systems. This article will deepen and enrich the understanding of hospital information system performance theory, which will help further research on information system performance in the future.

The paradox of production: Surface water supply drives agricultural productivity but not prosperity in California’s San Joaquin Valley

The paradox of production: Surface water supply drives agricultural productivity but not prosperity in California’s San Joaquin Valley

Research on the Key Paths of Enterprise Integration of Domestic and Foreign Trade from the Perspective of Knowledge Transfer

The issue of inefficient industry innovation caused by the segmentation of domestic and foreign trade markets has been prominent, leading to a long-standing "productivity paradox" between domestic and foreign trade. "Constructing a new pattern of integration of domestic and foreign trade with the domestic cycle as the main body and the mutual promotion of domestic and international cycles" is a strategic deployment of the Party Central Committee and the State Council. This paper investigates the problems and intrinsic mechanisms faced in the process of enterprise integration of domestic and foreign trade from the perspective of knowledge transfer. It clarifies that the primary task of integrating domestic and foreign trade is to solve the problem of inefficient knowledge transfer between domestic and foreign trade. At the same time, the study shows that: On the one hand, by constructing a horizontal system of knowledge transfer between domestic and foreign trade, it is possible to effectively enable foreign trade enterprises to enjoy the dividends of unified large market reforms, better integrate resources and standards with the domestic trade market, and promote the transfer of knowledge achievements of foreign trade enterprises to the domestic market. On the other hand, through vertical industrial ecological knowledge embedding, it can promote domestic enterprises to leverage the advantages of domestic consumption scale, integrate technology, channels, and platform resources, achieve knowledge embedding of enterprises in the vertical ecological chain of industries, and ultimately achieve the goal of integrated development of domestic and foreign trade.

The productivity paradox in carbon‐intensive companies: How eco‐innovation affects corporate environmental and financial performance

AbstractEmpirical studies analyzing the relationship between strategies to reduce greenhouse gas (GHG) emissions and firms' environmental and financial performance often fail to find significant effects when firms invest in innovative green technologies. Indeed, as efficiency and productivity gains of new technologies can often be reaped only after a certain time gap, cross‐sectional studies are bound to ignore the time component, thus becoming subject to the productivity paradox. Employing an integrative approach, drawing on eco‐efficiency theory, productivity paradox, and innovation diffusion principles, this longitudinal study observes companies with high GHG emissions during and after the first two European Union Emission Trading Scheme (EU ETS) trading periods (2005–2019). It analyzes (1) the dynamics of carbon reduction practices over time, (2) the impact of GHG reduction strategies on environmental performance, (3) the positive effect of GHG‐related efficiency improvements on firm performance, while considering (4) the moderating effect of GHG emissions type on the latter relationship.

The paradox of research and development productivity and firm growth: Empirical evidence from publicly listed firms in the United Kingdom

AbstractThis research aims to investigate the intricate association between research and development (R&D) productivity, specifically assessed through Total Factor Productivity (TFP), and various dimensions of firm growth. Our analysis provides a comprehensive examination of different aspects of growth, including sales, productivity, and employment growth. In addition, we investigate the role of R&D investment in conjunction with R&D productivity to provide clear insights into this multifaceted relationship. Although conventional wisdom suggests a positive relationship between R&D and firm growth, our empirical exploration reveals a more intricate reality. Using 164 non‐financial firms listed on the FTSE 350, our findings indicate that while R&D indeed contributes significantly to firm growth, the nature of this influence is contingent upon the specific dimension of growth under consideration and the adopted empirical models. For example, our baseline model shows a positive relationship between R&D productivity and sales and productivity growth. However, this result does not hold for employment growth. This study makes a substantial contribution to the existing body of research on R&D by illuminating the indirect intricacies of this relationship, offering practical insights for both scholars and industry professionals navigating the complex landscape of R&D‐induced growth within the economic milieu.

How does digital transformation promote total factor productivity? Strategy, technology, and application

AbstractTo examine the productivity paradox in the digital era, we explore the impact of digital transformation (DT) on total factor productivity (TFP). Based on a large sample of Chinese manufacturing firms, this study conducts a machine learning approach to examine the effects of DT on TFP at the strategy, technology, and application levels. The results indicate that blockchain, DT strategy, cloud computing, artificial intelligence, DT application, and big data, in ascending order of importance, positively affect TFP. Overall, this study enriches DT literature by verifying the impact of DT indexes on TFP and helps companies make decisions when undertaking DT implementation.

Unraveling the impact of digital transformation on green innovation through microdata and machine learning

How to use digitalization to support the green transformation of organizations has drawn much attention based on the rapid development of digitalization. However, digital transformation (DT) may be hindered by the “IT productivity paradox.” Exploring the influence of DT on green innovation, we analyze panel data encompassing A-share listed companies in Shanghai and Shenzhen spanning the period from 2010 to 2018. It tests the DT's non-linear impact, employing a random-forest and mediation effect models. The results reveal that (i) DT can promote green innovation; (ii) regarding heterogeneity, the promotion effect is mainly manifested in enterprises in non-state-owned and highly competitive industries; (iii) based on mechanism testing, DT relies on two routes to encourage green innovation: improving environmental information disclosure and reducing environmental uncertainty; and (iv) random-forest analysis shows that DT exhibits an inverted U-shaped non-linear effect on green innovation, including the “IT productivity paradox.” This study enhances the existing discourse on DT and green innovation by furnishing empirical substantiation for the non-linear influence exerted by DT on green innovation. Furthermore, it imparts insights into the mechanisms and contextual limitations governing this association.

Impact of IT governance mechanisms on IT-enabled dynamic capabilities to achieve firm performance: role of moderators

PurposeAlthough information technology (IT) governance and IT capability have been extensively examined, the impact of IT governance mechanisms on IT-enabled dynamic capability (ITDC) with moderators has received less attention. This study investigates how the impact of IT governance mechanisms on firm performance is achieved through an ITDC through the moderating role of IT governance decentralization and a turbulent environment.Design/methodology/approachThis study extends from the traditional view of IT capabilities and integrates dynamic capability theory to propose that IT governance is vital for the ITDC. Path analysis, hierarchical regression analysis and moderation analysis were performed using partial least squares (Smart PLS 3.0) as the data analysis methods. This study empirically tests the proposed mediated moderation model by using data collected from 254 firms in China to test the hypotheses.FindingsSignificant and impactful relationships are found in the model that includes turbulent environment moderating effects. Contrary to expectations, IT governance decentralization is also significant but not very strong.Research limitations/implicationsThis study’s findings have implications for investigating IT governance, IT-enabled capabilities and moderators. Accordingly, this study has implications for board and executive management to capitalize on dynamic IT capability, to keep pace with the challenges and turbulent conditions associated with business needs and for the productivity paradox in the context of Chinese firms.Originality/valueThis country-specific research study theoretically contributes to the IT governance, dynamic capabilities and turbulent environment in the information systems literature and proposes many practical guides to the board and executive management of companies in the Chinese context.

Can Spatial Agglomeration Promote Exports? The Evidence from China’s Wood-Processing Industry

Wood processing products can be used as a substitute for some high carbon emission materials, thus contributing significantly to climate change mitigation. China has significant importance in guaranteeing a stable global supply of wood products. However, China has experienced a decline in wood product exports recently, which could affect the world’s progress toward sustainable development. This study focuses on the spatial agglomeration of China’s wood-processing industry and explores the potential of integrating spatial agglomeration to address the diminishing export growth. We found that the spatial agglomeration of China’s wood-processing industry generally increased rapidly between 1999 and 2004, but decreased after 2004. The centroid of China’s wood-processing is shifting from the northeastern region toward the eastern coastal areas. The industry is more concentrated in the north–south direction and slightly dispersed in the east–west direction. Most sub-sectors of China’s wood-processing industry operate at the primary agglomeration level, indicating significant potential for improvement and further development. The empirical results unveil the substantial positive influence of spatial agglomeration on exports within China’s wood-processing industry, indicating the prospects for enhancing exports through the deliberate exploitation of agglomeration effects. The results advocate the view that spatial agglomeration acts as an essential accelerator for export growth and firms’ international competitiveness. Therefore, spatial agglomeration can alleviate the export constraints of China’s wood-processing industry. The results also show that exports are hampered by increased enterprise productivity. The ‘productivity paradox’ phenomenon has also surfaced in low-tech industries, like the wood-processing industry, as a result of issues with transaction costs, the development path, and policy orientation. Therefore, we should strategically leverage the spatial agglomeration effect, especially in the western region, and guide the moderate competition of enterprises to enhance the competitiveness of low-tech enterprises. China’s wood-processing industry can provide advanced experience and lessons for other countries regarding industrial cluster allocation and sustainable development models.

A SYSTEMATIC LITERATURE REVIEW ON IMPACT OF HYBRID WORK CULTURE ON EMPLOYEE JOB ENGAGEMENT AND PRODUCTIVITY - A STUDY OF IT PROFESSIONALS IN KARNATAKA

Purpose: This study aims to comprehensively investigate the Impact of Hybrid Work Culture on Employee Job Engagement and Productivity, with a specific focus on IT professionals in Karnataka. As organizations increasingly adopt hybrid work models, understanding the nuanced effects on the workforce becomes imperative. The research seeks to assess the levels of job engagement among IT professionals within this hybrid framework, examining how the flexible arrangement influences their commitment, motivation, and overall involvement in work-related tasks. Additionally, the study aims to measure productivity metrics, investigating whether the combination of remote and in-office work enhances or impedes IT professionals ability to deliver high-quality output. By delving into the intricate dynamics of the hybrid work model, the research also intends to identify challenges faced by IT professionals and propose practical solutions, contributing valuable insights to both academic literature and organizational strategies. Ultimately, the findings aspire to guide organizations and policymakers in shaping effective hybrid work policies that optimize employee engagement, productivity, and overall well-being in the unique context of Karnatakas IT sector. Finding / Results:Organizations transitioning to hybrid work models aim to enhance employee engagement through factors like culture, recognition, and reinvented appraisal systems. The positive characteristics of remote work challenge traditional norms, posing a management struggle to define the new normal. Employee retention remains crucial for long-term success, and digital transformation plays a significant role in accelerating work-life balance. The hybrid models impact on productivity is inconclusive, yet the appeal lies in offering flexibility, happiness, and efficiency. Challenges and opportunities arise, emphasizing the need for effective leadership, digital tools, and a focus on employee well-being in navigating the evolving landscape of work. Originality/ Value: This research provides in-depth insights into hybrid work models, emphasizing digital tools, leadership, and employee well-being. It tackles job satisfaction, productivity paradox, and turnover intention, offering valuable perspectives for post-pandemic work strategies. The study contributes to informed decision-making on optimizing hybrid work structures, addressing challenges, and leveraging opportunities in the evolving workplace landscape. Paper type : Systematic Review Paper KEYWORDS: Hybrid Work Culture, Employee Job Engagement, Productivity, IT Professionals and Workforce Dynamics

Insuring Success: Unpacking the Health Insurance Productivity Paradox

Insuring Success: Unpacking the Health Insurance Productivity Paradox

The complex relationship between precipitation and productivity in drylands

Abstract Drylands provide multiple essential services to human society, and dryland vegetation is one of the foundations of these services. There is a paradox, however, in the vegetation productivity–precipitation relationship in drylands. Although water is the most limiting resource in these systems, a strong relationship between precipitation and productivity does not always occur. Such a paradox affects our understanding of dryland vegetation dynamics and hinders our capacity to predict dryland vegetation responses under future climates. In this perspective, we examine the possible causes of the dryland precipitation–productivity paradox. We argue that the underlying reasons depend on the location and scale of the study. Sometimes multiple factors may interact, resulting in a less significant relationship between vegetation growth and water availability. This means that when we observe a poor correlation between vegetation growth and water availability, there are potentially missing sources of water input or a lack of consideration of other important processes. The paradox could also be related to the inaccurate measurement of vegetation productivity and water availability indicators. Incorporating these complexities into predictive models will help us better understand the complex relationship between water availability and dryland ecosystem processes and improve our ability to predict how these ecosystems will respond to the multiple facets of climate change.

A paradox of the social production of urban space: environmental sustainability and vulnerable territories in Londrina/PR/Brazil

The social production of urban space is marked by the segregationist pattern. This encourages denial of decent housing for a portion of the Brazilian population, which has to seek vulnerable territories (favelas) as a survival strategy. The aim of this article is to present the reality scenario where these vulnerable territories (favelas) are present in the urban space of Londrina/PR, which unfolds in the concern to enter into the paradox between the formal construction environment and these territories, as most of them are located in areas of permanent preservation (APP's), which by precept of the Laws: Forest Code (2012) Environmental Code of Londrina (2012), should be preserved. A qualitative approach was the used methodology in the research, with the theoretical-methodological framework based on Lefebvre (2006) and primary and secondary sources were used to obtain the data. Environmental laws clash with the information obtained in the survey: the existence of 69 vulnerable territories, with 3,160 families (10,867 people, 2017) rising to 3,815 families (12,240 people) in 2020 (LONDRINA, 2021). This reality results in the lack of convergence between the territorial planning policy (PDM) and policies such as: environmental, housing, environmental sanitation (other sectoral policies) that should be integrated in favor of the development of inclusive and socially and environmentally sustainable cities, which could contribute to overcoming the paradox of the social production of space

Innovators, innovation and increasing returns to scale: Solving New Zealand’s productivity paradox

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Peer governance effects of information security breaches

Peers' information security risks may have sent negative signals to the market, thus forcing firms to strengthen their internal control governance. Solow's paradox, however, suggests that when information technology (IT) investment does not reach equilibrium, firms may still blindly increase IT investment while neglecting information security management. Using the unique information security breaches data released by the China National Information Security Vulnerability Database (CNVD), we find that the peers' information security breaches have a governance effect on firm internal control. The underlying mechanism is that peer information security breach increases the cost of proprietary information and reputation maintenance. In addition, we find that the above peer governance effects are more significant in samples with higher agency conflicts, high-tech industries, and higher supply. Further, our further analysis also shows that the peer governance effects of information security breaches positively affect firms' investment efficiency. Overall, our findings verify the peer governance effects of the information security breaches.