The article argues that IT continues to have strategic relevance for companies because it en-ables innovation. A conceptual link between the adoption of IT and innovation is established. This conceptual link allows a market-based, economic explanation for variations in IT payoffs among firms:...

How do new and foreign firms achieve superior productivity? Do they conduct more and better R&D? Or do they distinguish themselves through computerization and organizational capital? We investigate the determinants of and returns to several types of investment, using a panel of over 40,000...