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Original Articles

Complementarities of human capital and information technology: small businesses, emerging economy context and the strategic role of firm resources

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Pages 639-653
Published online: 22 Jun 2011

How information technology (IT) may complement other key firm resources such as human capital is a question that has drawn increasing attention from scholars and practitioners. Answers to this question are crucial for small businesses in today’s environment. These businesses face a growing demand for IT usage at the same time that they typically can count only on limited resources. This has become a common situation that is particularly critical for small businesses operating in developing countries with emerging economies. We develop propositions and test them with a dataset of service small businesses in an emerging economy. We find that the use of IT services is positively related to firm productivity and that this relationship is positively moderated by entrepreneurs’ management education. Our findings indicate that firm productivity is associated with a combination of human and technology resources.

Acknowledgements

An earlier version of this study was presented at the 2008 meeting of the Academy of Management, Anaheim, CA. We thank the audience in this presentation and anonymous referees for helpful comments.

 

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