Table AI.

Definition and measurement of variables

NameDefinitionMeasurement
REFERProject case reference-ability1-5 (negative, disappointed, positive, satisfied, and promoter) assigned for firm i in year 2001
EXTENDSoftware license extension1 if firm i has extended the license by repeat purchasing the same enterprise system application as of 2001
LABOREmployeesThe number of employees for firm i in year t and 2001
SALESSalesNet sales for firm i in year t and 2001
ORGOrganizational restructuring0 or 1 if firm i used organizational restructuring consulting services for enterprise systems implementation in year t
CUSTAdaptive customization0 or 1 if firm i purchased annual membership service to customize the software in year t
KCSCapital intensityCapital’s cost share in relative to Labor’s cost share for firm i in year t and 2001
VSVertical scope[Total value added - (Net income + Income taxes)/[Net sales-(Net income + Income taxes] in year t and 2001
MFPMulti-factor productivityValue-added, total-factor or multi-factor productivity
DURATIONEnterprise system vendor and client firm historyMonths from the year of first enterprise system implementation with ITSTAR to 2001 regardless of co-specialization
MERGAQMerger and acquisition activityTransaction merger and acquisition value, scaled by operating income
MANUFACTManufacturing industries1 for manufacturing industries
SICIndustry group4-digit SIC codes
INTRA_ISWithin-firm enterprise systems solutions1 if firm i has purchased within-firm APS solutions designed for internal activities
INTER_ISBetween-firm enterprise systems solutions1 if firm i has purchased between-firm APS solutions designed for external transactions
ADIAdvertising intensityAdvertising intensity (%) for firm i in year t and 2001
Advertising expenditures/Net sales in year t and 2001
ABROADForeign location1 if implemented at foreign location
ACCOUNTAccount type1-3 client firm’s account type

Note:

Yearly financial measures (LABOR, SALES, KCS, VS, MFP, MERGAQ, and ADI) are converted to 2001 dollar values

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