Measuring organization capital in Japan: an empirical assessment using firm-level data

Miyagawa, Tsutomu and Kim, YoungGak (2007) Measuring organization capital in Japan: an empirical assessment using firm-level data. CEPDP (817). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 9780853280453

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Abstract

Globalization and the ICT revolution of the 1990s have forced many firms to reorganize in order to survive in a more competitive market. There are several approaches that can be used to assess the measurement of organization capital since it is unobservable. Using an optimizing firm model and assuming that a firm holds multiple assets as suggested by Yang and Brynjolfsson (2001) and Cummins (2005), we examined whether organization capital is accumulated with investment in several types of assets. In contrast to Cummins’s (2005) results, we found that the accumulation of organization capital is associated with investment in R&D assets and marketing assets. Using these results and following Basu, Fernald, Oulton, and Srinivasan (2003), we measured the contribution of organization capital to the conventional TFP growth. The estimation results implied that the growth of organization capital did not have significant effects on productivity growth.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2007 the authors
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HD Industries. Land use. Labor
JEL classification:	L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification and Scope, Age, Profit, and Sales L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L21 - Business Objectives of the Firm
Date Deposited:	19 Jul 2008 13:22
Last Modified:	13 Sep 2024 20:03
URI:	http://eprints.lse.ac.uk/id/eprint/19696

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