Information Technology and High Performance Workplace Practices: Evidence on Their Incidence from Upstate New York Establishments

Abstract Purpose To examine the nature and the determinants of the incidence and diffusion of a range of new technologies. Design/methodology/approach We collected new survey data in 2001 for medium sized establishments in upstate and central New York. Findings Our econometric findings suggest that the use of new technologies tends to be more extensive in firms in which greater use is made of flexible work practices and flexible compensation practices and when skill levels are high. We find that the use of IT, the intranet, and computer literacy training is greater when the average tenure of managers is low, which might reflect a greater comfort with new technologies by younger managers. Larger establishments tend to use the Internet more extensively, which may reflect the cost of setting up Internet billing and purchasing systems, and an intranet communication system. Managerial tenure does not affect the use of the Internet in general perhaps because these might be operations that are less central to the activities of more senior managers. Also, we find mixed evidence for our digital divide hypothesis that predicts that the use of new technologies would be greatest in metropolitan areas and least in rural locations. Research limitations/implications We recognize it is potentially risky to draw inferences from a relatively small survey. Originality/value Some findings mesh with those contained in earlier studies (e.g., Black & Lynch, 2004) though, importantly, now finding emerge when a broader range of new technologies is being considered.