ICT, Innovation and Productivity: Evidence from Eastern European Manufacturing Firms

Main motivation behind this study is to evaluate relations between ICT, management practices, innovation, human capital and organizational changes in sample of manufacturing enterprises from Eastern European countries. Using data from Management, Organization and Innovation (MOI) Survey 2009 for a representative sample of 444 firms from Bulgaria, Poland, Romania, Serbia and Ukraine and using ordinary least squares and structural equation modelling econometric techniques we examined direct and indirect determinants of labour productivity. Main finding that have emerged from the study is that cost for employees is the main determinant of labour productivity. In addition, the casual relationship between ICT and its complementarities and productivity, has been established indirectly. Mainly, by the enterprise workers ICT use. The results of the investigation bridge the gap of insufficient academic research about Eastern European countries extend existing research on firm-level labour productivity determinants and enable to compare the results at the international framework.