The Impact of IT–Coordination Costs on Firm Size and Productivity: Transaction Cost Perspective
Please answer the followings questions:
Discuss the following based on the paper and upload your document before next class.
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