The more firms invest in IT, the higher their productivity. Discuss this statement by explaining the three reasons why IT boosts productivity.

      

The more firms invest in IT, the higher their productivity. Discuss this statement by explaining the three reasons why IT boosts productivity.

  

Answers


Faith
Information technology automates tasks and has widespread complementary effects. This allow firms to restructure and re-engineer their processes
Information technology new equipment innovations are relatively easy to use which enables them to be incorporated into various sectors of the firm.
Information technology has spill over effects. This can be realized by increasing users of a user network. Adding a new member to the network makes the current members better off.
Faimus answered the question on February 3, 2018 at 13:21


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