Definition and measurement of variables
| Name | Definition | Measurement |
|---|---|---|
| REFER | Project case reference-ability | 1-5 (negative, disappointed, positive, satisfied, and promoter) assigned for firm i in year 2001 |
| EXTEND | Software license extension | 1 if firm i has extended the license by repeat purchasing the same enterprise system application as of 2001 |
| LABOR | Employees | The number of employees for firm i in year t and 2001 |
| SALES | Sales | Net sales for firm i in year t and 2001 |
| ORG | Organizational restructuring | 0 or 1 if firm i used organizational restructuring consulting services for enterprise systems implementation in year t |
| CUST | Adaptive customization | 0 or 1 if firm i purchased annual membership service to customize the software in year t |
| KCS | Capital intensity | Capital’s cost share in relative to Labor’s cost share for firm i in year t and 2001 |
| VS | Vertical scope | [Total value added - (Net income + Income taxes)/[Net sales-(Net income + Income taxes] in year t and 2001 |
| MFP | Multi-factor productivity | Value-added, total-factor or multi-factor productivity |
| DURATION | Enterprise system vendor and client firm history | Months from the year of first enterprise system implementation with ITSTAR to 2001 regardless of co-specialization |
| MERGAQ | Merger and acquisition activity | Transaction merger and acquisition value, scaled by operating income |
| MANUFACT | Manufacturing industries | 1 for manufacturing industries |
| SIC | Industry group | 4-digit SIC codes |
| INTRA_IS | Within-firm enterprise systems solutions | 1 if firm i has purchased within-firm APS solutions designed for internal activities |
| INTER_IS | Between-firm enterprise systems solutions | 1 if firm i has purchased between-firm APS solutions designed for external transactions |
| ADI | Advertising intensity | Advertising intensity (%) for firm i in year t and 2001 Advertising expenditures/Net sales in year t and 2001 |
| ABROAD | Foreign location | 1 if implemented at foreign location |
| ACCOUNT | Account type | 1-3 client firm’s account type |
| Name | Definition | Measurement |
|---|---|---|
| REFER | Project case reference-ability | 1-5 (negative, disappointed, positive, satisfied, and promoter) assigned for firm i in year 2001 |
| EXTEND | Software license extension | 1 if firm i has extended the license by repeat purchasing the same enterprise system application as of 2001 |
| LABOR | Employees | The number of employees for firm i in year |
| SALES | Sales | Net sales for firm i in year |
| ORG | Organizational restructuring | 0 or 1 if firm i used organizational restructuring consulting services for enterprise systems implementation in year |
| CUST | Adaptive customization | 0 or 1 if firm i purchased annual membership service to customize the software in year |
| KCS | Capital intensity | Capital’s cost share in relative to Labor’s cost share for firm i in year |
| VS | Vertical scope | [Total value added - (Net income + Income taxes)/[Net sales-(Net income + Income taxes] in year |
| MFP | Multi-factor productivity | Value-added, total-factor or multi-factor productivity |
| DURATION | Enterprise system vendor and client firm history | Months from the year of first enterprise system implementation with ITSTAR to 2001 regardless of co-specialization |
| MERGAQ | Merger and acquisition activity | Transaction merger and acquisition value, scaled by operating income |
| MANUFACT | Manufacturing industries | 1 for manufacturing industries |
| SIC | Industry group | 4-digit SIC codes |
| INTRA_IS | Within-firm enterprise systems solutions | 1 if firm i has purchased within-firm APS solutions designed for internal activities |
| INTER_IS | Between-firm enterprise systems solutions | 1 if firm i has purchased between-firm APS solutions designed for external transactions |
| ADI | Advertising intensity | Advertising intensity (%) for firm i in year |
| ABROAD | Foreign location | 1 if implemented at foreign location |
| ACCOUNT | Account type | 1-3 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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