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Measuring Organizational Capital in the New Economy

Author

Listed:
  • Black, Sandra E.

    (Columbia University)

  • Lynch, Lisa M.

    (Brandeis University)

Abstract
A growing body of literature over the past decade suggests that a firm’s organizational structure/capital can contribute in significant ways to the productive capacity of a firm. But, as with other intangible assets, there is no consensus definition of what this organizational capital is, how to measure it, or how to best quantify its contribution to output (either current or future). We try to address this gap in the literature by proposing a definition of organizational capital based on recent empirical work on the impact of organizational capital on firm productivity and workers’ wages. We then discuss in detail how organizational capital has been measured and the measurement issues that face those trying to understand the extent of organizational capital in an economy.

Suggested Citation

  • Black, Sandra E. & Lynch, Lisa M., 2005. "Measuring Organizational Capital in the New Economy," IZA Discussion Papers 1524, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1524
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    References listed on IDEAS

    as
    1. Sandra E. Black & Lisa M. Lynch, 2004. "What's driving the new economy?: the benefits of workplace innovation," Economic Journal, Royal Economic Society, vol. 114(493), pages 97-116, February.
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    11. Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
    12. Eve Caroli & John Van Reenen, 2001. "Skill-Biased Organizational Change? Evidence from A Panel of British and French Establishments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1449-1492.
    13. Sandra E. Black & Lisa Lynch & Anya Krivelyova, 2003. "How Workers Fare When Employers Innovate," NBER Working Papers 9569, National Bureau of Economic Research, Inc.
    14. Peter Cappelli & William H. Carter, 2000. "Computers, Work Organization, and Wage Outcomes," NBER Working Papers 7987, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    human capital; productivity;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • D2 - Microeconomics - - Production and Organizations

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