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E-business and labour productivity in manufacturing and services

Growing case evidence suggests that integration of business processes through computer networks, with organisational and human capital investments, promotes gains in labour productivity (Brynolffson and Yang, 1999). The concept of a firm with integrated systems linking production, distribution, procurement and sales functions making operations more efficient is supported by international case studies. Automatic processing and sharing of such information may help improve labour productivity if the technology is applied appropriately