Small Business Economics

, Volume 39, Issue 1, pp 99–117 | Cite as

The productivity payoff of information technology in multimarket SMEs

  • Francesco D. SandulliEmail author
  • José Fernández-Menéndez
  • Antonio Rodríguez-Duarte
  • José Ignacio López-Sánchez


This paper examines the effects of information technology (IT) adoption on the productivity of multimarket small and medium-sized enterprises (SMEs). The main hypothesis is that IT usage increases efficiency to a higher degree in diversified and internationalized firms compared with single-market SMEs. This hypothesis is tested using a large sample of more than 2,000 Spanish SMEs. Overall, intensive use of IT in operations processes is found to be associated with substantial increases in productivity of firms following both related and unrelated diversification. Also, exporting firms with more intensive use of IT have higher productivity. These results are consistent with previous theoretical arguments on the relationship between IT and efficiency of firms and open future research directions related to the role played by IT in the management control systems of both diversified and exporting firms.


Productivity paradox Performance Diversification Internationalization Small and medium-sized enterprises Information technology 

JEL Classifications

O30 M15 L25 L26 


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Copyright information

© Springer Science+Business Media, LLC. 2010

Authors and Affiliations

  • Francesco D. Sandulli
    • 1
    Email author
  • José Fernández-Menéndez
    • 1
  • Antonio Rodríguez-Duarte
    • 1
  • José Ignacio López-Sánchez
    • 1
  1. 1.Departamento de Organización de Empresas, Facultad de Ciencias Económicas y EmpresarialesUniversidad Complutense de Madrid MadridSpain

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