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EU KLEMS Project

EU KLEMS Working Paper Series

No. 29

Kangasniemi, Mari and Catherine Robinson (2008) The impact of organisational change on productivity. Sectoral evidence from the UK, 1995-2005, (August 2008)


Investment in ICT has been slow to exhibit productivity gains and increasingly it is argued that modern organisational arrangements are crucial in unlocking productivity gains from general purpose technologies such as ICT. The relationship between organisational change, the labour market and technology is complex. In this paper, we explore in greater detail these relationships, specifically the impact that organisational change has on productivity, using EUKLEMS augmented with additional data on training and other workplace practices and structures from the Labour Force Survey and the Community Innovation Survey for the UK. Our findings show very little evidence of our chosen measures of organisational change affecting productivity at the industry level, with the exception of advanced workplace practices. We find also weak evidence that in higher skilled industries, organisational change is more positively associated with productivity gains.

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This project is funded by the European Commission, Research Directorate General as part of the 6th Framework Programme, Priority 8, "Policy Support and Anticipating Scientific and Technological Needs".

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Last changed on: August 13 2008