Comparative Analysis of IT Management and Productivity between Japanese and U.S. Firms

This compares the use of IT at the firm level and its management practices between Japanese and U.S. firms, based on an analysis using data from the "International Comparative Survey of Firms' IT Strategies." According to our principal component analysis for characterizing the firm-level pattern of enterprise computing, three factors are identified: (1) overall IT-use intensity, (2) the degree of using information systems, and (3) the degree of using mission critical systems for the back office. In general, Japanese firms display high overall IT-use intensity, while the degree of informational system use is low. It is also found that the degree of informational systems and of using mission critical systems for the back office, instead of overall IT intensity is correlated with the total factor productivity (TFP) level of a firm, regardless of its nationality.