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INTRODUCTION
Adoption of Information and Communications Technology (ICT) can affect the performance of fi rms in a variety of ways, including faster processing of information and products, the facilitation of changes in business practices and improved internal organisation and management. Indeed, much of the recent research on developed countries in this area has emphasised less the adoption decision per se than what adoption facilitates. In particular, ICT is widely viewed as enabling changes in business and other processes that in turn can generate improvements in performance. It has been argued that the wide variations observed in the estimates of the contribution of ICT to output and productivity are, at least partly, due to differences in co-investments (including those in organizational change) and associated changes in business and other processes. Thus, ICT investment directly affects production processes and permits other productivity enhancing changes, such as customisation, thereby modifying the overall business strategy of the ICT adopting fi rm.
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