Big data investment, skills, and firm value

Management Science

Volumn 60, Issue 6, 2014, Pages 1452-1469

  Tambe, Prasanna ^a  

^a NEW YORK UNIVERSITY   (United States)

Author keywords

Big data; Business analytics; Economics of is; Hadoop; Information systems; It policy and management; It productivity; It value; It workforce; Management of it human resources; Strategic management of it; Technical skills

Indexed keywords

COMMERCE; ECONOMICS; EMPLOYMENT; INDUSTRY; INFORMATION SYSTEMS; INFORMATION TECHNOLOGY; INVESTMENTS; PRODUCTIVITY; QUERY LANGUAGES;

BUSINESS ANALYTICS; ECONOMICS OF IS; HADOOP; IT POLICY AND MANAGEMENTS; IT PRODUCTIVITY; IT VALUE; IT WORKFORCE; MANAGEMENT OF IT HUMAN RESOURCES; STRATEGIC MANAGEMENT; TECHNICAL SKILLS;

BIG DATA;

EID: 84902290714     PISSN: 00251909     EISSN: 15265501     Source Type: Journal    
DOI: 10.1287/mnsc.2014.1899     Document Type: Article

References (65)

1. Agarwal R, Ferratt T (2001) Crafting an HR strategy to meet the need for IT workers. Comm. ACM 44(7):58-64.
2. Amir R (2005) Supermodularity and complementarity in economics: An elementary survey. Southern Econom. J. 71(3):636-660.
3. Ang S, Slaughter S, Ng K (2002) Human capital and institutional determinants of information technology compensation: Modeling multilevel and cross-level interactions. Management Sci. 48(11):1427-1445.
4. Aral S, Brynjolfsson E, Wu DJ (2006) Which came first, IT or productivity? Twenty-Seventh Internat. Conf. Inform. Systems, Milwaukee.
5. Arora A, Gambardella A (1990) Complementarity and external linkages: The strategies of the large firms in biotechnology. J. Indust. Econom. 38(4):361-379.
6. Athey S, Stern S (1998) An empirical framework for testing theories about complementarity in organizational design. Discussion Paper w6600, National Bureau of Economic Research, Cambridge, MA.
7. Attewell P (1992) Technology diffusion and organizational learning: The case of business computing. Organ. Sci. 3(1):1-19.
8. Bapna R, Langer N, Mehra A, Gopal R, Gupta A (2013) Human capital investments and employee performance: An analysis of IT services industry. Management Sci. 59(3):641-658.
9. Barua A, Mani D, Mukherjee R (2012) Measuring the business impacts of effective data. White paper, Sybase, Dublin, CA.
10. Bertolucci J (2012) Big data's "Wild West" period stars Hadoop. InformationWeek (September 4), http://www.informationweek.com/big-data/big- data-analytics/big-datas-wild-west-period-stars-hadoop/d/d-id/1106099?.
11. Bloom N, Sadun R, Van Reenen J (2012) Americans do IT better: US multinationals and the productivity miracle. Amer. Econom. Rev. 102(1):167-201.
12. Borjas G, Freeman R, Katz L (1996) Searching for the effect of immigration on the labor market. Amer. Econom. Rev. 86(2):246-251.
13. Bresnahan TF, Brynjolfsson E, Hitt LM (2002) Information technology, workplace organization, and labor demand: Firm-level evidence. Quart. J. Econom. 117(1):339-376.
14. Brynjolfsson E, Hitt LM (1995) Information technology as a factor of production: The role of differences among firms. Econom. Innovation New Tech. 3(3-4):183-200.
15. Brynjolfsson E, Hitt L (1996) Paradox lost? Firm-level evidence on the returns to information systems spending. Management Sci. 42(4):541-558.
16. Brynjolfsson E, Hitt LM (2000) Beyond computation: Information technology, organizational transformation and business performance. J. Econom. Perspect. 14(4):23-48.
17. Brynjolfsson E, Hitt LM (2003) Computing productivity: Firm-level evidence. Rev. Econom. Statist. 85(4):793-808.
18. Brynjolfsson E, McAfee A (2011) The big data boom is the innovation story of our time. The Atlantic (November 21), http://www.theatlantic.com/business/ archive/2011/11/the-big-data-boom-is-the-innovation-story-of-our-time/248215/.
19. Brynjolfsson E, Milgrom P (2013) Complementarity in organizations. Gibbons R, Roberts J, eds. The Handbook of Organizational Economics, Vol. 11 (Princeton University Press, Princeton, NJ), 11-55.
20. Brynjolfsson E, Hitt L, Kim H (2011) Strength in numbers: How does data-driven decision making affect firm performance? Working paper, Massachusetts Institute of Technology, Cambridge.
21. Card D (1990) The impact of the Mariel boatlift on the Miami labor market. Indust. Labor Relations Rev. 43(2):245-257.
22. Cassiman B, Veugelers R (2006) In search of complementarity in innovation strategy: Internal R&D and external knowledge acquisition. Management Sci. 52(1):68-82.
23. Chang YB, Gurbaxani V (2012) The impact of IT-related spillovers on long-run productivity: An empirical analysis. Inform. Systems Res. 23(3):868-886.
24. Cheng Z, Nault B (2007) Industry level supplier-driven IT spillovers. Management Sci. 53(8):1199-1216.
25. Cheng Z, Nault BR (2012) Relative industry concentration and customer-driven IT spillovers. Inform. Systems Res. 23(2):340-355.
26. Desmet K, Rossi-Hansberg E (2009) Spatial growth and industry age. J. Econom. Theory 144:2477-2502.
27. Dewan S, Kraemer K (2000) Information technology and productivity: Evidence from country-level data. Management Sci. 46(4):548-562.
28. Dewan S, Min C (1997) The substitution of information technology for other factors of production: A firm-level analysis. Management Sci. 43(12):1660-1675.
29. Dewan S, Ganley D, Kraemer KL (2010) Complementarities in the diffusion of personal computers and the Internet: Implications for the global digital divide. Inform. Systems Res. 21(4):925-940.
30. Dumbill E (2012) What is Apache Hadoop? O'Reilly (February 2), http://strata.oreilly.com/2012/02/what-is-apache-hadoop.html.
31. Fichman RG, Kemerer CF (1997) The assimilation of software process innovations: An organizational learning perspective. Management Sci. 43(10):1345-1363.
32. Forman C (2005) The corporate digital divide: Determinants of Internet adoption. Management Sci. 51(4):641-654.
33. Forman C, Goldfarb A, Greenstein S (2012) The Internet and local wages: A puzzle. Amer. Econom. Rev. 102(1):556-575.
34. Freeland C (2012) In big data, potential for big division. New York Times (January 12), http://www.nytimes.com/2012/01/13/us/13iht-letter13.html.
35. Glanz J (2013) Is big data an economic big dud? New York Times (August 17), http://www.nytimes.com/2013/08/18/sunday-review/is-big-data-an-economic- big-dud.html?pagewanted=all&-r=1&.
36. Greenstein S, Nagle F (2014) Digital dark matter and the economic contribution of Apache. Res. Policy 43(4):623-631.
37. Griliches Z (1992) The search for R&D spillovers. Scandinavian J. Econom. 94(Supplement):29-47.
38. Groenfeldt T (2012) Morgan Stanley takes on big data with Hadoop. Forbes (May 30), http://www.forbes.com/sites/tomgroenfeldt/2012/05/30/morgan-stanley- takes-on-big-data-with-hadoop/.
39. Harris D (2012) Netflix analyzes a lot of data about your viewing habits. Gigaom (June 14), http://gigaom.com/2012/06/14/netflix-analyzes-a-lot-of-data- about-your-viewing-habits/.
40. Harris D (2013) If you're disappointed with big data, you're not paying attention. GigaOm (May 28), http://gigaom.com/2013/05/28/if-youre-disappointed- with-big-data-youre-not-paying-attention/.
41. Henschen D (2012) Why Sears is going all-in on Hadoop. InformationWeek (October 24), http://www.informationweek.com/it-leadership/why-sears-is-going- all-in-on-hadoop/d/d-id/1107038?.
42. Hitt LM, Wu DJ, Zhou X (2002) Investment in enterprise resource planning: Business impact and productivity measures. J. Management Inform. Systems 19(1):71-98.
43. Huselid M (1995) The impact of human resource management practices on turnover, productivity, and corporate financial performance. Acad. Management J. 38(3):635-672.
44. Ichniowski C, Shaw K, Prennushi G (1997) The effects of human resource management practices on productivity: A study of steel finishing lines. Amer. Econom. Rev. 87(3):291-313.
45. Jaffe A (1986) Technological opportunity and spillovers of R&D: Evidence from firms' patents, profits, and market value. Amer. Econom. Rev. 76(5):984-1001.
46. Laursen K, Foss NJ (2003) New human resource management practices, complementarities and the impact on innovation performance. Cambridge J. Econom. 27(2):243-263.
47. Levina N, Xin M (2007) Comparing IT workers' compensation across country contexts: Demographic and institutional factors. Inform. Systems Res. 18(2):193-210.
48. Lichtenberg F (1995) The output contributions of computer equipment and personnel. A firm-level analysis. Econom. Innovation New Tech. 3(3-4):201-218.
49. McKinsey Global Institute (2011) Big data: The next frontier for innovation, competition, and productivity. Report, McKinsey Global Institute, New York.
50. Melville N, Kraemer K, Gurbaxani V (2004) Review: Information technology and organizational performance: An integrative model of IT business value. MIS Quart. 28(2):283-322.
51. Mendelson H (2000) Organizational architecture and success in the information technology industry. Management Sci. 46(4):513-529.
52. Milgrom P, Roberts J (1990) The economics of modern manufacturing: Technology, strategy, and organization. Amer. Econom. Rev. 80(3):511-528.
53. Milgrom P, Roberts J (1994) Complementarities and systems: Understanding Japanese economic organization. Estudios Economicos 9(1):3-42.
54. Mohnen P, Röller LH (2005) Complementarities in innovation policy. Eur. Econom. Rev. 49(6):1431-1450.
55. Porter M, Stern S (2001) Location matters. Sloan Management Rev. 42(4):28-36.
56. Provost F, Fawcett T (2013) Data science and its relationship to big data and data-driven decision making. Big Data 1(1):51-59.
57. Provost F, Kolluri V (1999) A survey of methods for scaling up inductive algorithms. Data Mining and Knowledge Discovery 3(2):131-169.
58. Rooney B (2012) Big data's big problem: Little talent. Wall Street Journal (April 29), http://online.wsj.com/news/articles/SB10 001424052702304723304577365700368073674?mg=reno64-wsj.
59. Saxenian A (1996) Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Harvard University Press, Cambridge, MA).
60. Schaal D (2011) Orbitz CEO plans to revolutionize hotel sort-Holy Hadoop. Tnooz (November 18), http://www.tnooz.com/2011/11/18/news/orbitz-ceo-plans-to- revolutionize-hotel-sort-holy-hadoop/.
61. Tambe P, Hitt LM (2012) The productivity of information technology investments: New evidence from IT labor data. Inform. Systems Res. 23(3-part-1):599-617.
62. Tambe P, Hitt L (2014) Job hopping, information technology spillovers, and productivity growth. Management Sci. 60(2):338-355.
63. Tambe P, Hitt LM, Brynjolfsson E (2012) The extroverted firm: How external information practices affect innovation and productivity. Management Sci. 58(5):843-859.
64. Thibodeau P (2012) Grad schools add big-data degrees. Computerworld (October 8), http://www.computerworld.com/s/article/9232106/Grad-schools-add- big-data-degrees.
65. Thier D (2012) An estimated 83 million Facebook profiles are fake. Forbes (August 2), http://www.forbes.com/sites/davidthier/2012/08/02/83-million- estimated-facebook-profiles-are-fake/.