The Incidence of Investment in Information Technologies on the Innovative Productivity of Service Firms

Abstract

The study analyzes the impact of investment in Information Technology (IT) on the innovative productivity of service companies, focusing on a short-term approach. Five study variables are identified: investment in IT, investment in training, administrative practices, investment in knowledge management and innovative productivity. It is confirmed that investment in IT has a positive impact on the productivity of service companies in the short term, and that knowledge management plays a crucial role as a moderating variable in this relationship. The results indicate that there is a moderation of the knowledge management variable in relation to information technologies and innovative productivity in the short term. The importance of investment in research and development is highlighted as a significant differentiating factor in the services sector in developing countries. The research also reveals that it is important to integrate information technologies with administrative practices in order to generate efficient internal processes that help companies be more productive and competitive.