Modularity and Productivity Assessing the Impact of Digital Technology In the U. S. Telecommunications Industry

摘要

Thsi article investigates the impact of digital technology diffusion on the productivity of firms making up the local operating sector of the U. S. telecommunications industry for the years 1991 to 1993. Diffusion of digital technology is measured as the extent of line digitalization that has taken place, with digitalization expected to enable firms to reap significant operating efficiencies. While the diffusion of this particular technology in the local operating company sector has been relatively low, it is found that, after controlling for the effects of a number of other covariates also likely to affect firm-level performance, the spread of digital technology within the U. S. local telephone network plays a significant and positive role in impacting productive efficiency of the firms making up the network.