The Role of Collective Learning in Ict Adoption and Use

The purpose of this study is to examine the relationship between information and communication technology (ICT) use and firms' performance, as well as the role played by collective learning in this relationship.Following a summary of the main conceptual approaches of economic theory with regard to the impact of ICT use on firms' performance, four testable hypotheses are formulated.A database containing data on 183 firms located in three Italian territorial contexts (Milan, Piacenza, and Sicily) is used to test these hypotheses.The sample comprises firms from the food and textile sectors, as well as the mechanical and high-tech sectors. Analysis of the data indicates that ICT adoption depends mostly on intra-firm characteristics and internal learning processes. Strategic ICT use, however, depends on collective learning processes (local knowledge cumulated during the time).Surprisingly, small firms are more inclined than larger firms to engage in ICT adoption, although large firms are more capable of strategically exploiting ICTs.Finally, strategic ICT use explains firm's performance, particularly among firms characterized by high levels of organizational flexibility, innovative attitude, and exploitation of local knowledge. (SAA)