035$
Munich Personal RePEc Archive
Technical Systems, Organisation Forms
and Social Implications: Statistical
Analysis of the Firm Survey (Second
Interim Report)
Schienstock, Gerd, Bechmann, Gotard, Flecker, Joerg, Huws,
Ursula, Van Hootegem, Geert, Mirabile, Maria Luisa, Moniz,
Anto´nio and O` Siochru, Sean
University of Tampere, UNL-FCT, ITAS-FZK, FORBA,
HIVA, IES, Nexus
December 1999
Online at http://mpra.ub.uni-muenchen.de/5883/
MPRA Paper No. 5883, posted 22. November 2007 / 15:07

Information Society, Work and
the Generation of New Forms of Social Exclusion
Technical Systems, Organisation Forms and Social Implications
Second Interim Report
(Statistical Analysis of the Firm Survey)
Tampere, Finland
December 1999
Gerd Schienstock (Co-ordinator) (WRC)
Gotthard Bechmann (ITAS)
Jörg Flecker (FORBA)
Ursula Huws (IES)
Geert Van Hootegem (HIVA)
Maria Luisa Mirabile (IRES)
António Brandão Moniz (FCT-UNL)
Seàn Ò Siochru (NEXUS)

TABLE OF CONTENTS
PREFACE
1. Introduction............................................................................................................................... 1
2. Description of the Sample ............................................................................................................ 4
2.1. Collection of data...................................................................................................... 5
2.2. Dimensions of sample companies ................................................................................. 7
3. Technological practices .............................................................................................................. 24
3.1. ICT applications ......................................................................................................24
3.1.1 The computer hardware technology......................................................................24
3.1.2 Software applications for office tasks .....................................................................31
3.1.3 Software applications at production stages .............................................................36
3.1.4 Communication technology .................................................................................42
3.1.5 Information and communication systems ...............................................................53
3.1.6 Intensity and modernity of ICT use.......................................................................61
3.1.7 A functional perspective......................................................................................64
3.1.8 Summary of the regional differences in ICT application ...........................................72
3.2. The organisational dimension ....................................................................................73
3.2.1 Some general trends ...........................................................................................73
3.2.2 Internal and external organisational changes ...........................................................78
3.2.3 Different modes of organisation............................................................................81
3.2.4 Technology system and organisation models ..........................................................86
3.2.5 Call centres........................................................................................................89
4. The Process of Introducing ICTs.................................................................................................. 92
4.1. Barriers in introducing ICTs ......................................................................................92
4.2. Subcontracting the implementation and development of ICTs .......................................98
4.3. Involvement in introducing ICTs................................................................................99
5. Social consequences of the use of modern ICTs ........................................................................... 102
5.1. Changes in the importance of skills and competencies ................................................102
5.2. Teleworkers ..........................................................................................................112
5.3. Employment change ..............................................................................................117
6. Managers' statements concerning the social consequences of
modern ICTs ........................................................................................................... 126
7. Conclusions ........................................................................................................................... 133
References ………………………………………………………………………………………………………… ..... 135
APPENDICES

LIST OF FIGURES
Figure 2.1. Type of products or services of company by region ............................................................. 9
Figure 2.2. Company's most important achieving criterion by region .................................................... 10
Figure 2.3. Company's market position by region.............................................................................. 11
Figure 2.4. Location of customers by region ..................................................................................... 13
Figure 2.5. Type of customers by region .......................................................................................... 14
Figure 2.6. Workforce age by region ............................................................................................... 15
Figure 2.7. Education level of workforce by region ............................................................................ 16
Figure 2.8. Workforce age and educational level by region.................................................................. 17
Figure 2.9. Share of male employees by region ................................................................................. 18
Figure 3.1. Applied computer system by region ................................................................................ 26
Figure 3.2. Applied computer systems by industrial sector .................................................................. 27
Figure 3.3. Applied computer systems by company size ..................................................................... 27
Figure 3.4. External data communication by region............................................................................ 28
Figure 3.5. External datacommunication by sector ............................................................................. 29
Figure 3.6. External data communication by company size.................................................................. 29
Figure 3.7. Office tasks carried out using software applications by region .............................................. 31
Figure 3.8. Office tasks carried out using software applications by sector............................................... 32
Figure 3.9. Number of tasks carried out using software applications by sector ........................................ 33
Figure 3.10. Number of tasks carried out using software applications by company size ............................ 33
Figure 3.11. Share of workforce applying office automation by region.................................................. 35
Figure 3.12. Share of workforce applying office automation by sector .................................................. 35
Figure 3.13. Average applicable and automated production stages by firm size, industrial sector and
region ....................................................................................................................... 37
Figure 3.14. Automation of applicable production stages by region...................................................... 38
Figure 3.15. Automation of applicable production stages by sector ...................................................... 39
Figure 3.16. Automation of production stages by company size........................................................... 40
Figure 3.17. Technical integration between computer-supported production stages by region................... 41
Figure 3.18. Technical integration between computer-supported production stages by company size ......... 41
Figure 3.19. Technical integration between computer-supported production stages by
computer infrastructure ............................................................................................... 42
Figure 3.20. Application of communication technology by region........................................................ 43
Figure 3.21. Application of communication technology by sector ........................................................ 44
Figure 3.22. Application of communication technology by company size .............................................. 45
Figure 3.23. Share of users of e-mailing systems in companies by region ............................................... 46
Figure 3.24. Users of workflow management systems in companies by region ........................................ 47
Figure 3.25. Users of e-mailing systems in companies by sector ........................................................... 48
Figure 3.26. EDI partners of companies by region ............................................................................. 49
Figure 3.27. EDI partners of companies by sector.............................................................................. 50
Figure 3.28. Internet use of companies by region .............................................................................. 51
Figure 3.29. Purposes of companies’ websites by region ..................................................................... 52
Figure 3.30. Purposes of companies’ websites by sector...................................................................... 53

Figure 3.31. ICT systems by region................................................................................................. 58
Figure 3.32. ICT systems by sectors ................................................................................................ 59
Figure 3.33. ICT systems according to company's most important achieving criterion ............................. 61
Figure 3.34. Intensity and modernity of ICT use by region ................................................................. 62
Figure 3.35. Intensity and modernity of ICT use by company size........................................................ 63
Figure 3.36. Intensity and modernity of ICT use by industrial sector .................................................... 64
Figure 3.37. Importance of ICT functions in implementation of ICTs ................................................... 66
Figure 3.38. Importance of ICT functions: as a tool/automation technology/control device/feedback
mechanism by region................................................................................................... 67
Figure 3.39. Importance of ICT functions: as organisation/network technology by region ........................ 68
Figure 3.40. Importance of ICT functions: as a tool/automation technology/control device/feedback
mechanism by sector................................................................................................... 69
Figure 3.41. Importance of ICT functions: as organisation/network technology by sector ........................ 70
Figure 3.42. High importance of co-ordination and communication function and control function
by region................................................................................................................... 72
Figure 3.43. Share of organisational restructured companies and average number of
organisational changes by region.................................................................................... 77
Figure 3.44. Introduction of different organisational changes by number of changes in company .............. 78
Figure 3.45. Organisational changes by region .................................................................................. 79
Figure 3.46. Organisational changes by industry................................................................................ 80
Figure 3.47. Organisational changes by company size......................................................................... 80
Figure 3.48. Organisation forms by region ....................................................................................... 83
Figure 3.49. Organisation forms by sector........................................................................................ 84
Figure 3.50. Organisation forms by company's most important achieving criterion ................................. 85
Figure 3.51. Companies' ICT system by organisation forms ................................................................ 87
Figure 3.52. Companies' ICT system by internal and external organisational changes .............................. 88
Figure 3.53. Organisational changes by intensity and modernity of ICT use ........................................... 89
Figure 3.54. Call centres by region.................................................................................................. 90
Figure 3.55. Call centres by industry ............................................................................................... 90
Figure 3.56. Call centres by company size ........................................................................................ 91
Figure 4.1. Importance of different barriers in introducing ICTs........................................................... 93
Figure 4.2. Importance of technical problems in introducing ICTs by region .......................................... 94
Figure 4.3. Importance of non-technical problems in introducing ICTs by region.................................... 95
Figure 4.4. Importance of technical problems in introducing ICTs by sector .......................................... 96
Figure 4.5. Importance of non-technical problems in introducing ICTs by sector .................................... 97
Figure 4.6. Subcontracting implementation and development of ICTs to ICT service providers by region ... 98
Figure 4.7. Subcontracting implementation and development of ICTs to service providers by
size of company.......................................................................................................... 99
Figure 4.8. Involvement of users in process of implementing and developing ICT systems by region ........ 100
Figure 4.9. Involvement of users in implementation and development of ICT by size of company ........... 100
Figure 4.10. Involvement of union representatives in process of implementing and developing
ICT system by region ................................................................................................ 101
Figure 5.1. Skills by region........................................................................................................... 104
Figure 5.2. Skills by industry ........................................................................................................ 106

Figure 5.3. Skills clusters by region................................................................................................ 108
Figure 5.4. Skills cluster by amount of company personnel................................................................ 109
Figure 5.5. Skills cluster by ICT system.......................................................................................... 110
Figure 5.6. Skills cluster by organisation forms ................................................................................ 111
Figure 5.7. Skills cluster by organisational changes ........................................................................... 112
Figure 5.8. Types of telework by region ......................................................................................... 113
Figure 5.9. Telework by industrial sector........................................................................................ 114
Figure 5.10. Telework by ICT system............................................................................................ 115
Figure 5.11. Telework by organisation forms .................................................................................. 116
Figure 5.12. Teleworkers by gender, age, qualifications, working time and work relationship.................. 117
Figure 5.13. Employment change by company size .......................................................................... 118
Figure 5.14. Change in employment by sector ................................................................................ 119
Figure 5.15. Change of employment by region ............................................................................... 120
Figure 5.16. Employment change by ICT system............................................................................. 121
Figure 5.17. Employment change by organisation forms ................................................................... 122
Figure 5.18. Employment change by use of telework ....................................................................... 123
Figure 5.19. ICT-related employment change in different departments or functions.............................. 124
Figure 5.20. ICT-related employment growth by types of affected workers ......................................... 125
Figure 5.21. ICT-related employment reduction by types of affected workers ...................................... 125
Figure 6.1. Evaluation of statements .............................................................................................. 128

LIST OF TABLES
Table 2.1. Data collection methods and response rates ......................................................................... 5
Table 2.2. Number of cases by region, size, and sector......................................................................... 5
Table 2.3. Background information on companies ............................................................................. 19
Table 3.1. Technical systems.......................................................................................................... 30
Table 3.2. Tasks carried out regularly by using software applications by number of tasks.......................... 34
Table 3.3. Computer-supported stages of production process.............................................................. 36
Table 3.4. ICT typology based on organisational functionalities............................................................ 55
Table 3.5. Communication technology ............................................................................................ 56
Table 3.6. ICT systems.................................................................................................................. 57
Table 3.7. Type of ICT system....................................................................................................... 58
Table 3.8. Alternative perspectives on information and communication technology ................................ 64
Table 3.9. ICT metaphors and functions .......................................................................................... 65
Table 3.10. Control function and intensity and modernity of ICT use................................................... 71
Table 3.11. Co-ordination and communication function and intensity and modernity of ICT use .............. 71
Table 3.12. Number of organisational changes.................................................................................. 76
Table 3.13. Organisation forms...................................................................................................... 81
Table 3.14. Distribution of organisation forms in data ........................................................................ 82
Table 3.15. Linkages of organisation forms and technical systems ........................................................ 86
Table 6.1. Major deviations in evaluation of statements by region ...................................................... 131

1. INTRODUCTION
This is the second interim report of the research project "Information Society, Work and the
Generation of New Forms of Social Exclusion" (SOWING). It is based on a firm survey
conducted in the eight regions participating in the research project — Flanders (Belgium), Lazio
(Italy), Niederösterreich (Austria), Portugal, the Republic of Ireland, the Stuttgart area
(Germany), the Tampere region (Finland) and the West London area (U.K.). The aim of this
report is to present a broad overview of the collected data. In general, only simple statistical
methods have been applied. The report focuses on a regional comparison; however, the data
have also been analysed by firm size, measured by quantity of staff, and industrial sector. It
should be seen as a first step in the data analysis; it may also give some hints for a more strategic
analysis of the survey data.
The aim of the next step is to produce a more comprehensive report. Therefore, the
continuation of the data analysis will be based on more advanced statistical methods (factor
analysis and cluster analysis) and new, more complex variables will thereby be created.
The results of the firm survey will be used to provide information about the case studies. One
could argue that the survey analysis generates hypotheses of relationships between the key
variables, which can be tested in the case studies. Together with the regional/national profile
report, the firm survey can help in giving preliminary answers to the question of whether there is
one European way into the information society or whether various regions follow their own path
into it.
A major part of the report deals with the concept of technological practices. First, we will
present the technological dimension. We will discuss and use different concepts of ICT
applications in the report. Next, we will deal with the organisational dimension of technological
practices and analyse how the technological and organisational dimensions are related. Finally,
we will focus on the social consequences of technological practices, and pay particular attention
to the exclusion aspect.

5Table 2.2. Number of cases by region, size and sector
Flanders Lazio Nieder-
österreich
Portugal Republic of
Ireland
Stuttgart
area
Tampere
region
West
London area
Total
Region
Size
Sector 20–
49
50+ 20–
49
50+ 20–
49
50+ 20–
49
50+ 20–
49
50+ 20–
49
50+ 20–
49
50+ 20–
49
50+ 20–
49
50+ Total
1. Light
manu-
facturing
9 6 10 6 7 7 1 7 1 12 9 5 12 11 2 49 56 105
2. Heavy
manu-
facturing
9 6 19 19 7 8 15 14 10 8 7 8 13 21 10 8 90 92 182
3. Other
manu-
facturing
9 9 10 6 7 6 5 11 6 12 4 5 4 5 10 6 55 60 115
4. Con-
struction 9 4 3 1 7 7 5 12 7 10 5 4 3 1 39 39 78
5. Sales,
hotel,
etc.
5 8 3 1 8 7 11 5 8 10 6 8 5 3 9 11 55 53 108
6. Trans-
port &
finance
6 5 5 11 7 7 1 13 3 8 6 8 5 5 9 11 42 68 110
7. Busi-
ness
services
9 6 1 5 7 8 12 5 2 3 9 8 6 1 13 7 59 43 102
Total
1.–7. 56 44 51 49 50 50 45 55 35 65 48 52 50 50 54 46 389 411 800

7The sample was equally distributed by size and sector in the cases of Niederösterreich and Flanders.
Manufacturing companies are over–represented in the samples of Lazio, Portugal, the Republic of
Ireland and the Tampere region, and service companies in the West London data. By industrial
sectors, the construction industry lacks more cases than others. Also, business service and light
manufacturing companies are under–represented in the data. Most probably, these under– and
over–representations reflect the varying industrial structures of the different regions.
2.2. Dimensions of sample companies
In the questionnaire (Appendix 1), we asked for background information about the companies,
such as the company's type and location, type of its products, its most important achieving criteria,
the market it operates on, its customers, and the characteristics of the company's labour force.
Company type
Concerning the company type, we differentiated between fully independent companies, parent
companies, companies independent in a group, and branch establishments. Fully independent
companies are the most common ones in all regions, but they can be found particularly in
Niederösterreich (76%), the Stuttgart area (63%) and Lazio (57%). About 27% of all the
companies are independent in a group and they are more typical in Flanders (36%), the West
London area (32%), the Republic of Ireland (32%) and Lazio (30%) than elsewhere. There are
only few parent companies in our sample (about 7%). Branch establishments (15% of all the
companies) are more frequent in the Tampere region and in the West London area (28% and
24%).
The dominant company type varies according to the industrial sectors. Fully independent companies
are the most common types in the construction industry (71%). Also, in light manufacturing
industry, more than half of the companies (51%) are fully independent. The greatest share of
independent companies in a group can be found in heavy manufacturing (36%), in the sales &
hotel industry (35%), and in the group of other manufacturing industries (32%). Branch
establishments are the most common in business services (19%) and in the transport & finance
sector (18%). Parent companies are exceptional in all sectors. Most of the small companies are
fully independent companies, while among the larger companies the share is much smaller (36%).

8Company's location
In all regions, most of the companies are located in urban areas, particularly in the Tampere region
(71%), in Lazio (70%) and, of course, in the West London area (100%). In Portugal and in
Flanders, approximately one third of the companies are situated in mixed areas. The largest share of
the companies located in rural area can be found in Niederösterreich (24%).
Companies in all service sectors are typically located in urban areas (more than 70%), which in the
manufacturing sectors is less frequently the case. For example, in light manufacturing industry, only
half of the companies are situated in urban areas. In general, manufacturing companies are more
commonly located in mixed areas. In the light manufacturing sector, instead, companies are fairly
commonly located in rural areas (30%). If we look at firm size, no significant differences
concerning the location of companies can be found.
Years the company has been operating at current address
Most of the companies have been operating at their current addresses for quite a long time; half of
the companies for over 20 years. Only the West London area is an exception; almost 60% of the
companies have been operating at the same addresses for less than 10 years. In general, companies
in the manufacturing sectors have been operating at their current addresses longer than companies
in the service sectors. In the construction sector, as many as 66% of all companies have been
operating at the same addresses for over 20 years. In the business services sector, their share is only
21%. In addition, more than half of these companies have been operating at the same location for
less than 10 years. Large companies, as expected, have been operating at the same addresses
slightly longer than small companies. Altogether 73% of large companies and 65% of small
companies have been operating at their current addresses for over 10 years.
The type of products or services of the company
We differentiated between three types of products or services that the companies produce: standard
products or services, variant products or services, and products or services specified by customers.
Most typically, the products or services provided by the company are specified by customers
(48%), whereas only few companies produce standard products or services. Figure 2.1. indicates

9that in the Tampere region (55%), Niederösterreich (54%), Flanders (53%) and Portugal (52%),
half of the companies produce products or services that are customer-specified. On the other hand,
the share of companies producing variants (45%) is the greatest in the Stuttgart area. The greatest
share of companies with standardised products or services can be found in Lazio (26%), the
Republic of Ireland (23%) and Niederösterreich (20%), while in Flanders (8%), the Tampere
region (10%) and the Stuttgart area (11%), only few companies provide this type of products or
services.
Figure 2.1. Type of products or services of company by region
2 = 27.6 (df = 14) p=0.016*
Business services (63%) and the construction industry (58%) represent the industries in which
customer-specified products or services dominate. The opposite is true for the sales & hotel
industry; in this sector, only 27% of all companies provide customer-specified services, while 28%
of the companies offer standard services. Thus, variants are typical in the sales & hotel industry
(45%) and light manufacturing (45%) as well as in the transport & finance industry (41%). In
general, there are no big differences regarding the type of products or services between service and
manufacturing industries, however. We can find only small differences in the type of products or
services when we look at the size of the companies. More than half of the small companies (54%)

10
produce customer-specified products; this share is slightly smaller when we look at the larger
companies (44%).
Company's most important achieving criteria
Quality, productivity, delivery period, flexibility, and innovation are the key criteria which
companies aim at achieving (Figure 2.2.). In our sample, quality was most often regarded as the
key competition criterion. It is especially important for companies in Niederösterreich (66%), the
West London area (65%), and Flanders (63%), while for companies in the Tampere region it
seems to be less important (38%). On the other hand, productivity is still defined as a relevant
criterion for competitiveness by a larger share of companies in the Tampere region (27%), Lazio
(21%) and the Republic of Ireland (17%). Quite a big number of companies in the Stuttgart area
(26%) and the Tampere region (21%) also regard flexibility as a relevant achieving criterion. In all
regions, the share of companies regarding the delivery period and innovation as a key competition
criterion is rather small.
Figure 2.2. Company's most important achieving criterion by region
2 = 87.6 (df = 28) p= 0.000***
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Niederösterreich
West London
Flanders
Lazio
Portugal
Ireland
Stuttgart
Tampere
Total
Quality Productivity Delivery period Flexibility Innovation

11
Particularly for light manufacturing (71%), quality is the most important achieving criterion, while
it is the least important for companies in business services (41%). On the other hand, flexibility
(23%) and innovation (24%) are also important criteria for companies in the business services
sector. Productivity is most often regarded as an important achieving criterion by companies in
heavy manufacturing industries (18%). Concerning the dominating achieving criteria, companies of
different size do not differ significantly.
Position on the widest operated market
As Figure 2.3. shows, more than half of all the companies operate on the international market
(59%). However, the majority of them are only minor players on the international level. Still, 21%
of all companies have a rather strong position on the international market by being among the five
largest either on the European or on the global market. Approximately a tenth of the companies
operates only on the regional market and 30% only on the national market where the majority of
companies (18% of all the companies) seem to be minor players.
Figure 2.3. Company's market position by region
1) In the Irish questionnaire, the whole Republic of Ireland was considered a region.
2 = 175.0 (df = 28) p = 0.000***
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Portugal
West London
Lazio
Flanders
Tampere
Stuttgart
Niederösterreich
Ireland 1)
Total
regional level minor on national marketmajor on national market
minor internationally significant internationally

12
Nearly 80% of the Portuguese companies (78%) and about two thirds of the firms in the West
London area (65%) operate on the international market. As many as 41% of companies in the
West London area have a significant role on the international level, whereas over half of the
companies in the Republic of Ireland (54%) and Niederösterreich (52%) operate only on the
national market. The Central European firms’ market areas also equal to their own region (in
Niederösterreich 19% and especially in the Stuttgart area 29%) more commonly than those of the
other firms.
In general, companies from manufacturing sectors are very often present on the international
market (61%–81%), while companies in the construction industry are in the weakest position on
international markets (24%). Most typically, construction companies play a minor role on the
national market (37%). Larger companies, as expected, are more active on international market
than smaller ones.
Location of customers
Above we discussed the companies’ widest market areas. Next, we will deal with the location of the
majority of their customers (Figure 2.4). In the Stuttgart area (59%) and Niederösterreich (50%),
the share of companies with customers predominantly in the region is quite large. On the contrary,
only about one fourth of all companies in the West London area mostly co–operate with regional
customers; here the most relevant area is the national economy. The majority of customers of as
many as 15% of all companies in West London is located outside the EU. Customers in the EU
countries are quite important for companies in Portugal (28%), the Republic of Ireland (24%),
Flanders (17%), and the Tampere region (16%).

14
of the companies in Niederösterreich have mainly individual customers, who are quite important for
companies in the West London area (31%) and in the Republic of Ireland (26%) as well. Public
administration is not very significant as a customer for any region.
Figure 2.5. Type of customers by region
2 = 23.7 (df = 14), p =0.050*
In all sectors, with the exception of the sales & hotel industry in which individual customers
dominate, customers are mainly companies. However, in the transport & finance sector as well as in
the construction industry, more than 30% of all companies have predominantly individual
customers. In general, however, industry and services do not differ very much concerning the
dominant type of their customers. Differences in size of company concerning the dominant type of
companies' customers are not statistically significant.
Age of the companies' workforce
The regions differ from each other quite considerably regarding the age of the workforce (Figure
2.6.). Typically, the majority of the workers within companies are under 40; this is particularly true
for companies in Niederösterreich (75%), the West London area (72%) and the Republic of
Ireland (71%). In addition to this, the companies in West London area and the Republic of Ireland
have remarkably often a lot of young employees. On the other hand, only one third of all the
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Niederösterreich
West London
Ireland
Tampere
Stuttgart
Lazio
Flanders
Portugal
Total
Mainly individual customersMainly companies Mainly public administration

20
Half of the companies offer customer specified products/services and around one third offers
variants (in Niederösterreich only 26%). In the Republic of Ireland, the share of specified
products/services is considerably smaller (23%). In addition, the Stuttgart area is exceptional,
because companies producing variants are most typical (45%) there. Furthermore, standard
products are fairly common in Lazio (26%).
Quality is clearly the most important achieving criterion, even though there are major differences
between regions. Niederösterreich and the West London area differ somewhat, since in these
regions as many as about two thirds of the companies regard quality as the uppermost criterion. In
the Tampere region, the same share is only 39%. Compared to other regions, productivity is quite
a common criterion in Tampere (26%); at the same time, only 1% of the companies in
Niederösterreich is of the same opinion. The importance of delivery period differs only little
between regions. In the Stuttgart area and the Tampere region, companies consider flexibility fairly
often as the most important achieving criterion (26% and 21%).
In almost every region a bigger part of the companies are minor players on the international market
by their market positions. Portugal is exceptional because there the share is as great as 61%. The
regional market is very important to the companies in the Stuttgart area(29%). Being a minor
player on the national market is fairly common to the companies in Niederösterreich (28%).
Companies in the Republic of Ireland are most typically major players on their national market
(35%). There are many companies in the West London area that play a significant role on the
international market (41%).
On average, half of the companies have been operating at their current addresses for more than 20
years. The share is exceptionally large in Niederösterreich (74%) and in the Stuttgart area (66%)
and, at the same time, relatively small in Portugal (31%) and in the West London area (19%).
Fewer companies than on average in Niederösterreich (4%) and in the Stuttgart area (4%) have
been operating at their current addresses for less than 5 years. The West London area is remarkably
different because the same share is as great as 34% there.
Most companies are fully independent companies (47%), but their share is substantially greater in
Niederösterreich (76%) and in the Stuttgart area (63%). In Portugal, companies are mainly
independent in a group (56%). Branch establishments are the most common in the Tampere region

26
Figure 3.1. Applied computer system by region
2=63.7 (df=28) p=0.000***
As can been seen in Figure 3.2., a single computer system is most commonly used in construction
industry (57%), and multi-systems in other manufacturing (63%) and heavy manufacturing
(60%). Companies in construction industry rely only on stand-alone PCs most often (21%). The
PC system is frequently applied in light (14%) and heavy manufacturing (13%) as well. The
mainframe with terminals possibly added with stand-alone PCs is most widely used in light
manufacturing (18%), in the sales, hotel & restaurant sector (17%), and in transport & finance
(11%). LANs, instead, are most common in business services and other manufacturing. They can
be found in over 80% of the companies in these sectors.
Company size also affects the type of ICT systems applied (Figure 3.3.). Over half of the small
firms (53%) use only one computer system, while two-thirds of the larger companies apply a multi-
system, which is most commonly LANs added with other system(s) (57%). The isolated stand-
alone PC system is applied in 20% of the small firms and only in 5% of large companies.
0 % 20 % 40 % 60 % 80 % 100 %
Portugal
Lazio
Stuttgart
Ireland
Niederösterreich
West London
Tampere
Flanders
Total
PCs
mainframe
LAN
mainframe + PCs
LAN +

28
We further analysed whether the applied computer technology is connected only locally in a
company establishment if at all, whether connectivity exists between separate establishments of a
company, or whether the company is connected to the outside world. Overall, 9% of the
companies lack any connection outside the particular establishment, 17% have inter-establishment
links and 73% have external connections.
Figure 3.4. indicates that the establishments that are technically isolated can most often be found in
companies in Niederösterreich (33%), while the share is only 4% among companies in the
Tampere region. Also, a great majority of the firms in this region have data communication links
with external third parties (91%).
Figure 3.4. External data communication by region
2=51.1, df=14, p=0.000***
Data communication among company establishments is most common in companies in the business
service sector (93%). As many as 86% of these companies have data communication linkages with
external parties outside the company (Figure 3.5.). On the other hand, in only 60% of the
companies in the energy & construction sector and 65% of the firms in the sales & hotel sector
establishments are externally connected. In nearly a quarter of the small companies and a tenth of
the large companies, single establishments lack any external data communication link (Figure 3.6.).
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Tampere
Stuttgart
Ireland
Portugal
West London
Lazio
Flanders
Niederösterreich
Total
No or local Between establishmentsExternal

29
Compared to the 69% of the small firms, a total of 77% of the large companies have the link
outside the other establishment of the company.
Figure 3.5. External datacommunication by sector
2=54.8, df=12, p=0.000***
Figure 3.6. External data communication by company size
2=30.7, df=2, p=0.000***
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
20-49
50+
Total
No or local Betw een establishmentsExternal
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
business services
light manufact.
heavy manufact.
transport&finance
other manufact.
sales, hotel, etc.
construction
Total
No or local Between establishmentsExternal

30
Based on what has been discussed so far, we can distinguish between the following ICT systems
(Table 3.1.). More than 93% of all companies use network technologies, which in 73% of the
cases include external connectivity, and in 9% of the cases links between the establishments of the
company. More than half of the companies (55%) applying stand-alone PCs only do not have any
electronic data connection at all.
Table 3.1. Technical systems
Technical system Frequency Percentage Cumulative
percentage
— Only PC with no connection 53 7 7
— Mainframe and terminals (+ PC)
with only local connection
14 2 9
— LAN with only local connections 70 9 18
Subtotal A: ICT system with only local
connections (no connection between
other establishment of the company or
externally)
137 18
— Only PC between establishments
connected
3 0 18
— Mainframe (+ PC) between
establishments connected
11 1 19
— LAN between establishments
connected
59 8 27
Subtotal B: ICT systems with connection
to other establishments of the company
73 9
Subtotal A+B: ICT systems with no
external connectivity
210 27
— Only PC with external connectivity 40 5 32
— Mainframe (+ PC) with external
connectivity
51 7 39
— LAN with external connectivity 479 61 100
Subtotal C: ICT systems with external
connectivity
570 73
Total 780 100 100

35
Figure 3.11. Share of workforce applying office automation by region
2=70.2, df=21, p=0.000***
Figure 3.12. Share of workforce applying office automation by sector
2=118.3, df=18, p=0.000***
0 % 20 % 40 % 60 % 80 % 100 %
business services
transport&finance
heavy manufact.
sales, hotel, etc.
other manufact.
construction
light manufact.
Total
1-10%
11-30%
31-80%
81-100%
0 % 20 % 40 % 60 % 80 % 100 %
Portugal
Stuttgart
Lazio
Ireland
West London
Flanders
Tampere
Niederösterreich
Total
1-10%
11-30%
31-80%
81-100%

38
The following figures include only manufacturing companies. Automation of the production process
in manufacturing is the most advanced in Portugal and in the Stuttgart area (Figure 3.14.).
Companies in Lazio and Niederösterreich are clearly lagging behind in the overall application of
automation; in transport and warehouse management they are among the top users.
Figure 3.14. Automation of applicable production stages by region
2 counted on frequencies of applying/not applying companies by region:
Design of products, 2=28.9, df=7, p=0.000***
Planning and preparation, 2=19.6 , df=7 , p=0.006**
Treatment of products, 2=21.4 , df=7 , p=0.003**
Process control, 2=18.0 , df=7 , p=0.012*
Transport or warehouse management, 2=9.9, df=7, p=0.0193
Maintenance planning or quality management, 2=49.3, df=7, p=0.000***
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 %
Design of products
Planning and
preparation of
production
Treatment of products
Process control
Transport and
warehouse
management
Maintenance planning
and quality
management
Flanders
Lazio
Niederösterreich
Portugal
Ireland
Stuttgart
Tampere
West London
Total

39
According to the industrial sectors (Figure 3.15.), automation varies significantly only in the design
and treatment stages of products and in the process control stage. Automation is applied the most
comprehensively in the other manufacturing sector. It is the least advanced in companies in the
energy & construction industry. Large companies automate more of the applicable production
stages than small companies (Figure 3.16.).
Figure 3.15. Automation of applicable production stages by sector
2 counted on frequencies of applying/not applying companies by sector:
Design of products, 2=27.1, df=3, p=0.000***
Planning and preparation, 2=5.0, df=3, p=0.169
Treatment of products, 2=20.6, df=3, p=0.000***
Process control, 2=10.7, df=3, p=0.013*
Transport or warehouse management, 2=3.9, df=3, p=0.276
Maintenance planning or quality management, 2=3.0, df=3, p=0.385
0 % 20 % 40 % 60 % 80 % 100 %
Design of products
Planning and preparation of production
Treatment of products
Process control
Transport and w arehouse management
Maintenance planning and quality
management
light manufact.
heavy manufact.
other manufact.
construction
Total
L

41
Figure 3.17. Technical integration between computer-supported production stages by
region
2=27.9, df=7, p=0.000***
Figure 3.18. Technical integration between computer-supported production stages by
company size
2=17.4, df=1, p=0.000***
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Total
Lazio
Flanders
Ireland
Tampere
West London
Niederösterreich
Portugal
Stuttgart
Yes No
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Total
20-49
50+
Yes No

43
Figure 3.20. Application of communication technology by region
2 counted on frequencies of applying /not applying companies by region:
Internet access, 2=10.2, df=7, p=0.175
Electronic mail systems, 2=40.9, df=7, p=0.000***
EDI, 2=12.8, df=7, p=0.076
Workflow management systems, 2=65.3, df=7, p=0.000***
Telephone meeting systems, 2=53.9, df=7, p=0.000***
Video conferencing systems, 2=30.9, df=7, p=0.000***
As we can see in Figure 3.21., industries differ considerably in their adoption of communication
technology. In general, communication technologies, especially the e-mail and telephone meeting
systems, are used more often in the service sectors than in the manufacturing sectors. Business
services and other manufacturing sectors seem to be the most advanced sectors in applying
communication technology. It is also used relatively often in transport & finance and in heavy
manufacturing.
0 % 20 % 40 % 60 % 80 % 100 %
Internet access
E-mail systems
EDI
Workflow
management
systems
Telephone meeting
systems
Video conferencing
systems
Flanders
Lazio
Niederösterreich
Portugal
Ireland
Stuttgart
Tampere
West London
Total

44
Figure 3.21. Application of communication technology by sector
2 counted on frequencies of applying/not applying companies by sector:
Internet access, 2=23.7, df=6, p=0.001***
Electronic mail systems 2=38.2, df=6, p=0.000***
EDI, 2=8.1, df=6, p=0.232
Workflow management systems, 2=14.7, df=6, p=0.022*
Telephone meeting systems, 2=30.5, df=6, p=0.000***
Video conferencing systems, 2=14.9, df=6, p=0.021*
Large companies apply all the above-mentioned communication technologies more frequently
(Figure 3.22.). However, significant differences can only be found in the use of telephone meeting
technology, video conference systems, workflow management systems, and e-mail systems.
0 % 20 % 40 % 60 % 80 % 100 %
Internet access
E-mail
EDI
Workflow
management
Telephone meeting
Video conferencing
Light manufact.
Heavy manufact.
Other manufact.
Construction
Sales, hotel, etc.
Transport & finance
Business services
Total

45
Figure 3.22. Application of communication technology by company size
2 counted on frequencies of applying/not applying companies by company size:
Internet access, 2=0.7, df=1, p=0.399
Electronic mail systems, 2=9.1, df=1, p=0.003**
EDI, 2=2.9, df=1, p=0.090
Workflow management systems, 2=7.4, df=1, p=0.006**
Telephone meeting systems, 2=19.3, df=1, p=0.000***
Video conferencing systems, 2=15.0, df=1, p=0.000***
In most of the companies, only a minority of employees actually uses communication technologies.
If the company applies the communication system, 42% of the workforce on average use workflow
management systems, 39% the electronic mail systems, 11% telephone meeting systems and 3%
video conferencing systems. There are, however, great differences. In every fourth company, less
than 10% of all employees in the company use the e-mail, workflow management technology, and
telephone conference systems. On the other hand, the number of companies in which all
employees use the three technologies is also relatively big. This is the case with the e-mail in 17%
of the companies, with workflow management systems in 12% and with telephone conference
systems in 7%.
Figure 3.23. shows that the most extensive use of the electronic mailing systems among employees
can be found in the West London area and Portugal5. On the other hand, companies in
Niederösterreich seem to reduce the use of the e-mail to a small number of employees only.
Regional differences concerning the application of workflow management systems were not
0 % 20 % 40 % 60 % 80 % 100 %
Internet access
E-mail systems
EDI
Workflow management
systems
Telephone meeting
systems
V ideo conferencing
systems
20-49
50+
Total

47
Figure 3.24. Users of workflow management systems in companies by region
2=20.5, df=21, p=0.489
The application of the e-mail systems is the most widespread in business services (Figure 3.25.).
More than three quarters of the employees use the e-mail in over 60% of these companies. In small
companies the use of the e-mail is less widespread than in large companies. Somewhat surprisingly,
the share of the workforce using workflow management systems in small companies is bigger than in
larger companies.
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
West London
Tampere
Stuttgart
Lazio
Flanders
Ireland
Niederösterreich
Portugal
Total
1-10% 11-30% 31-70% 71-100%

50
Figure 3.27. EDI partners of companies by sector
Customers, 2=13.0, df=6, p=0.042*
Suppliers, 2=22.3, df=6, p=0.001***
Banks, 2=11.0, df=6, p=0.090
Public organisations, 2=10.1, df=6, p=0.122
Companies use the Internet most often for electronic mailing (89%) and surfing (79%). About a
quarter of all companies use the Internet for banking, giving orders to suppliers or accessing aid
databases. The use of the Internet does not differ significantly by company size or sector, but there
are regional differences (see Figure 3.28.). Surfing on the Internet is more common in the
companies in the Stuttgart area, the Republic of Ireland and Niederösterreich. Net banking is most
applied in the Tampere region and Niederösterreich. Instead, companies in Portugal and in the
Stuttgart area use paid databases on the web, and the Internet e-mail is very often applied in the
firms in Portugal, the West London and Stuttgart areas.
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 %
Customers
Suppliers
Banks
Public
organisations
Light manufact.
Heavy manufact.
Other manufact.
Construction
Sales, hotel, etc.
Transport&finance
Business services
Total

51
Figure 3.28. Internet use of companies by region
Surfing, 2=44.7, df=7, p=0.000***
Banking, 2=44.0, df=7, p=0.000***
Paid databases, 2=33.0, df=7, p=0.000***
E-mail, 2=28.1, df=7, p=0.000***
Order with suppliers, 2=3.3, df=7, p=0.855
Telephony, 2=7.4, df=7, p=0.389
Video conferencing, 2=9.9, df=7, p=0.193
A total of 57% of all firms provide an Internet website. Company websites are quite rare in
Niederösterreich, where only a third of the companies have one. Instead, about half of the firms in
the West London area, the Republic of Ireland and Flanders, about two thirds of the companies in
the Stuttgart area, Lazio and Portugal, and 73% of companies in the Tampere region have their
own websites.
Companies mainly provide their websites for marketing (82%) and press release purposes (37%).
It is used less for customer orders (29%), recruitment announcements (27%), or after-sales
services (22%). The purpose of the website varies significantly by industrial sector and region of
company.
As we can see in Figure 3.29., companies in the West London area are the most intensive providers
of websites for every purpose mentioned in the questionnaire. Also, the companies in the Stuttgart
0 % 20 % 40 % 60 % 80 % 100 %
Surfing
Banking
Paid databases
E-mail
Orders with
suppliers
Telephony
Video conferencing
Flanders
Lazio
Niederösterreich
Portugal
Ireland
Stuttgart
Tampere
West London
Total

52
area provide more versatile information on their websites than companies in other regions. Press
releases are also more often placed on the webpages in Flanders and marketing announcements in
Niederösterreich and Portugal. The websites are provided the least in Flanders and the Republic of
Ireland.
Figure 3.29. Purposes of companies’ websites by region
Press releases, 2=59.8, df=7, p=0.000***
Marketing, 2=40.9, df=7, p=0.000***
Customer orders, 2=13.5, df=7, p=0.062
After-sale services, 2=36.0, df=7, p=0.000***
Recruitment, 2=44.5, df=7, p=0.000***
By industrial sectors (Figure 3.30.), press releases are more often offered on the Internet by
business services and light manufacturing companies. Marketing is the most common reason for
having a website in other manufacturing companies and in the sales, hotel & restaurants sector. The
transport & finance sector is the leading provider of customer orders on the Internet, and all the
service sectors provide after-sales services on the Internet more than the manufacturing sectors.
Companies in the business service sector recruit new employees through the Internet twice as often
as companies in other sectors.
0 % 20 % 40 % 60 % 80 % 100 %
Press releases
offered on w ebsite
Marketing offered
on w ebsite
Customer orders
offered on w ebsite
After-sales
services offered on
w ebsite
Recruitment offered
on w ebsite
Flanders
Lazio
Niederösterreich
Portugal
Republic of Ireland
Stuttgart
Tampere
West London
Total

53
Figure 3.30. Purposes of companies’ websites by sector
Press releases, 2=30.1, df=6, p=0.000***
Marketing, 2=9.5, df=6, p=0.146
Customer orders, 2=12.6, df=6, p=0.049*
After-sale services, 2=15.0, df=6, p=0.020*
Recruitment, 2=71.0, df=6, p=0.000***
3.1.5 Information and communication systems
So far, we have dealt with the two technology strands of ICT separately. Next, we will analyse ICT
systems, integrating both strands. Brousseau and Rallet (1998: 247) have developed a typology of
modern ICTs focusing on the co-ordination dimension of organisations. Taking up the distinction
between core technologies and integrating technologies, the authors differentiate between
computers as information management tools that are in use in companies, and the type of
transmission and switching capacities that are used to link these tools. They further divide
information management tools, as we did earlier, into terminals and computing systems. The
function of the terminals is to code and decode information, they represent interfaces between
users and a system (the mainframe) that transmits or processes information. Computing systems, on
the other hand, automatically process information.
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 %
100
%
Press releases offered
on website
Marketing offered on
website
Customer orders
offered on website
After-sales services
offered on website
Recruitment offered on
website
Light manufact.
Heavy manufact.
Other manufact.
Construction
Sales, hotel, etc.
Transport&finance
Business services
Total

55
Table 3.4. ICT typology based on organisational functionalities (Brousseau and Rallet 1998: 247)
Isolated computer system
information management tools computing system to automate or support local decision
processes
transmission and switching
capacities
automated information management tools are not linked by
automated and de-materialised communication capacities
consequences these systems are not used in synergy to support, automate,
or integrate decisions on the collective level
Telecommunication systems
information management tools only terminals, no computing systems that automatically
process information
transmission and switching
capacities
communication is automated
consequences interactions are not bound and structured, content of the
message is managed by human beings; the system supports
both natural language communication and formal
communication; the aim is to accelerate information flows and
decrease information costs
Telematic systems
information management tools automated information management systems in all parts of an
organisation
transmission and switching
capacities
integration of information management tools through a
telecommunication system that enables automated exchange
of information and to process it in synergy, support and
automation of co-ordination
consequences automation of decision-making; process integration at the
organisational level; results are communicated to human
beings

57
Table 3.6. ICT systems
Computer technology Telecommunica-
tion without e-mail
Telecommunica-
tion including
e-mail
Telematics (EDI) Total
PC with no connection 50 (3) 53 (7%)
Mainframe with terminals -
local
13 1 14 (2%)
LAN - local 56 11 3 70 (9%)
Subtotal A: Computer
technology with no connectivity
119 15 3 137 (18%)
PC connected between
establishment
1 2 3 (0%)
Mainframe with terminals
Connected between
establishment
3 5 3 11 (1%)
LAN connected between
establishment
10 31 18 59 (8%)
Subtotal B: Computer
technology with internal
connectivity only
14 38 21 73 (9%)
Subtotal A + B: Computer
technology with no external
connectivity
133 53 24 210 (27%)
PC with external connectivity 3 23 14 40 (5%)
Mainframe with terminals
externally connected
13 14 24 51 (7%)
LAN with external connectivity 28 215 236 479 (61%)
Subtotal C: Computer
technology with external
connectivity
44 252 274 570 (73%)
Total 177 305 298 780 (100%)
About three out of four companies are externally connected. Nearly half of them have an EDI
system, which means that information exchange takes place without human interference. The other
companies have telecommunications systems in which people are still involved in the interpretation
of messages. A total of 27% of all ICT systems can be characterised as isolated systems if the

58
company as a whole is chosen as a reference point. If we go down to the individual workplace, only
18% of all ICT systems can be characterised as isolated computer systems (Table 3.7.).
Table 3.7. Type of ICT system
Percentage
Isolated ICT system on the work place level 18%
Isolated ICT system on the company level 9%
Telecommunication system 32%
Telematic system 35%
Do regions differ concerning the type of ICT system applied in companies? Figure 3.31. gives an
overview:
Figure 3.31. ICT systems by region
2=65.8, df=21, p=0.000***
As we can see in Figure 3.32., there are only few companies in the Tampere region (4%) and in
the Stuttgart area (12%) that have applied only isolated computer systems with no technical
connection either within the company or with the outside world. In Niederösterreich, on the other
hand, we can find the biggest share of companies with no technical connection to the outside world
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Tampere
Stuttgart
Ireland
Portugal
West London
Lazio
Flanders
Niederösterreich
Total
isolated on work place levelisolated on company leveltelecommunicationtelematics

61
Figure 3.33. ICT systems according to company's most important achieving criterion
2=13.2, df=12, p=0.353
3.1.6 Intensity and modernity of ICT use
We also analysed the intensity and modernity of ICT use. Based on a cluster analysis6, we
differentiated between the following dimensions: “low use of ICTs”, “traditional use of ICTs” and
“advanced use of ICTs”. Traditional use of ICTs is characterised by high office automation and high
production automation, while automation of communication is low. Advanced use of ICTs includes
also high automation of communication.
About a third of all companies in the overall sample make little use of ICTs. Approximately 50%
of companies use modern ICTs in an advanced way, while 1/5 of all companies uses ICTs mainly
for office, and if applicable, for production automation.

6 The first cluster had a negative score on the three ICT variables used in the analysis, namely the usage of
ICTs in office tasks, production, and communication. This cluster is called ‘low use of ICTs’. The second
cluster had a negative score in communication, but a positive one in office tasks and in production
(‘traditional use of ICTs’). The third cluster had high scores on all the three ICT variables (‘advanced use of
ICTs’).
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Total
Productivity
Delivery period
Quality
Flexibility
Innovation
Isolated on work place levelIsolated on company levelTelecommunicationTelematics

62
As Figure 3.34. points out, about 50% of all companies make little use of modern ICTs in
Flanders. Also, in Lazio, Niederösterreich, and in the Tampere region the share of companies that
do not use ICTs extensively is fairly large (about 40%). Advanced use of modern ICTs is
dominating among companies in Portugal, the Stuttgart area, the Republic of Ireland, and the West
London area. Here more than 50% of all companies use not only automated office and production
tasks but also communication tasks extensively. Advanced use of modern ICTs ranks lowest among
companies in Flanders and Niederösterreich. At the same time, however, traditional use of ICTs is
ranks highest in Niederösterreich.
Figure 3.34. Intensity and modernity of ICT use by region
2=62.1, df=14, p=0.000***
Concerning firm size, the results are as expected (Figure 3.35.). The share of small companies
making only little use of modern ICTs is nearly twice as great as that of larger companies. On the
other hand, a significantly greater number of larger companies (54%) than smaller companies
(41%) make advanced use of ICTs.
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Portugal
Stuttgart
Ireland
West London
Tampere
Lazio
Flanders
Niederösterreich
Total
low use of ICTs traditional use of ICTsadvanced use of ICTs

63
Figure 3.35. Intensity and modernity of ICT use by company size
2=33.2, df=2, p=0.000***
Differences among sectors are significant as well (Figure 3.36.). In heavy manufacturing and
construction, more than 40% of all companies make little use of modern ICTs. On the other hand,
the same share for the transport & finance sector and for business services is only half as big (about
20%). Advanced use of modern ICTs is the highest among companies in business services; here
two out of three companies belong to this category. Also, in the group of other manufacturing
industries and in the transport & finance sector, more than 50% of all companies use modern ICTs
in a more advanced way. Traditional use of ICTs is the most widespread among companies in the
sales & hotel industry.
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
20-49
50+
Total
low use of ICTs traditional use of ICTs advanced use of ICTs

64
Figure 3.36. Intensity and modernity of ICT use by industrial sector
2=53.6, df=12, p=0.000***
3.1.7 A functional perspective
The functional perspective on modern ICTs was discussed in the first interim report. The following
table comprises the various functions of modern ICTs in a schematic way and displays the aim
related to single functions.
Table 3.8. Alternative perspectives on information and communication technology
Metaphor Function Aim
ICTs as a tool support of workers in the
work process
increase quality and rapidity,
improve capability to cope with
complexity
automation
technology
elimination of human labour costs saving
control device monitoring and steering the
work process, controlling the
production environment
avoid technical defects and the
interruption of the production
process, avoid environmental
damages
feedback mechanism support adaptation and
learning processes
innovation
organisation
technology
integration of tasks,
functions and processes
organisational flexibility,
decentralisation of decision-
making
medium, network
technology
creation of technical
connections among people
and with machines
rapid exchange of information
and knowledge
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
business services
transport & finance
other manufact.
heavy manufact.
sales,hotel, etc.
light manufact.
construction
total
low use of ICTs traditional use of ICTs advanced use of ICTs

65
In the questionnaire, the respondents were asked to assess how important the 15 different functions
in introducing ICTs in the company were. According to the ICT metaphor, the functions were the
following:
Table 3.9. ICT metaphors and functions
Metaphor Expressed functions in the questionnaire
improving quality of products/servicesICTs as a tool
speeding-up decision-making
Automation technology reducing personnel costs
controlling production process
controlling worker output
Control device
reducing environmental damages
accelerating innovation processFeedback mechanism
reacting more quickly to market demands
achieving decentralisation in organisation
improving flexible forms of work
organisation
giving workers more autonomy
Organisation technology
improving working conditions
improving co-operation with customers
improving co-operation between
departments
Network technology
improving co-operation with suppliers
Figure 3.37. shows the importance of ICT functions in the implementation of ICTs in general.
Companies in the data mostly aim to use ICTs as network technology, especially to improve co-
operation with customers and departments. It also seems important to them to use ICTs as a tool to
improve the quality of products or services and to react more quickly to the market demands.
Achieving decentralisation or reducing environmental damages by introducing ICTs in the
companies seem to be considered the least important functions.

66
Figure 3.37. Importance of ICT functions in implementation of ICTs
The following figures present the mean7 of the importance of different functions by region and
industrial sector. The functions are divided into two parts by region (Figures 3.38. and 3.39.) and
sector (Figures 3.40. and 3.41.). In Figures 3.38. and 3.40., the functions of ICT as a tool,
automation technology, control device and feedback mechanism are presented. Figures 3.39. and
3.41. show the functions of organisation and network technology. In Portugal, the companies seem
to regard most of the different functions as important more often than in other regions. Companies
in Flanders and the Republic of Ireland also use ICTs as a tool to improve the quality of their
products or services more often than other companies elsewhere. Speeding up the decision-making

7 The values of these function variables were 1="not important", 2="not so important", 3="moderately
important," 4="important", 5="very important".
0 %
10
%
20
%
30
%
40
%
50
%
60
%
70
%
80
%
90
%
100
%
improving co-operation w ith customers
improving co-operation betw een departments
improving quality of products/services
reacting more quickly to market demands
controlling production process
improving co-operation w ith suppliers
speeding-up decision-making
improving w orking conditions
controlling w orker output
accelerating innovation process
improving flexible forms of w ork organisation
reducing personnel costs
giving w orkers more autonomy
reducing environmental damages
achieving decentralisation in organisation
Not important Not so important Moderately importantImportant Very important

71
Table 3.10. Control function and intensity and modernity of ICT use
Low importance
of function
High importance
of function
Total
Low use of ICTs 70
48%
76
52%
146
100%
Traditional use of ICTs 35
44%
45
56%
80
100%
Advanced use of ICTs 139
53%
124
47%
263
100%
Total 244
50%
245
50%
489
100%
Table 3.11. Co-ordination and communication function and intensity and
modernity of ICT use
Low importance
of function
High importance
of function
Total
Low use of ICTs 94
64%
52
36%
146
100%
Traditional use of ICTs 44
55%
36
45%
80
100%
Advanced use of ICTs 106
40%
157
60%
263
100%
Total 244
50%
245
50%
489
100%
The functions do not vary significantly by company size or sector, but regional differences do exist.
Figure 3.42. presents the share of companies in different regions considering both of these
functions as highly important. The regions can be summed up in four different categories. First,
there are the Stuttgart area and Lazio, in which companies do not regard either of these functions
as important, compared to companies in other regions. In the Republic of Ireland, Niederösterreich
and Flanders, over half of the companies regard only the control function as important. The
majority of companies in Portugal and the Tampere region, on the other hand, see only the co-
ordination and communication function as important, whereas in the West London area both
functions are equally considered important.

76
Table 3.12. Number of organisational changes
Percentage Cumulative percentage
No changes 22% 22%
1 change 18% 40%
2 changes 18% 58%
3 changes 18% 76%
4+ changes 24% 100%
On average, the number of organisational changes was 2,9 in the companies having restructured
their organisation. In larger companies, there had been slightly more changes than in companies
with fewer than 50 employees. According to industrial sectors, there was little variation, except
that companies in the construction industry had experienced fewer and business service sector
companies more numerous changes. But the number of organisational changes in the restructured
companies differed a lot regionally.
In Lazio, Niederösterreich and Flanders, there were fewer companies conducting organisational
restructuring and the number of changes in the restructuring companies was smaller than in other
regions (Figure 3.43.). In the Republic of Ireland and the West London area, instead, the
restructured companies had undergone several changes simultaneously. Over 80% of the
companies in the Stuttgart area, Portugal, and the Tampere region had introduced organisational
changes, but, in addition to this, companies in Portugal, and especially companies in the Tampere
region had restructured their organisations more extensively.

79
If we take both restructuring strategies separately, we can draw the conclusion that companies focus
more on internal than external changes. Companies in the Stuttgart area and in Niederösterreich
seem to represent an exception from this general trend, as they are slightly more inclined in
external restructuring processes. Companies in Flanders, Lazio and Portugal have had more changes
in only internal restructuring than other regions. Modern ICTs seem to be as important for the
restructuring of the internal organisation as for changes in the co-operation forms with external
organisations.
There also seems to be a clear difference in internal and external organisational changes in different
industrial sectors (Figure 3.46.). It is typical of business services to undertake both types of changes
concurrently. Instead, manufacturing companies more commonly than service companies undertake
only internal changes. External changes concentrate more often on companies in the transport &
finance sector. As noted earlier, larger companies have undertaken organisational changes more
often than smaller ones (Figure 3.47.). In addition to this, larger companies concentrate more
often on internal changes or they undertake internal and external changes concurrently. Small firms,
on the other hand, focus more on external changes.
Figure 3.45. Organisational changes by region
2=61.1, df=21, p=0.000***
0 % 20 % 40 % 60 % 80 % 100 %
Total
Lazio
Flanders
Niederösterreich
West London
Portugal
Ireland
Stuttgart
Tampere
No changes Internal External Both

80
Figure 3.46. Organisational changes by industry
2=41.5, df=18, p=0.001***
Figure 3.47. Organisational changes by company size
2=13.7, df=3, p=0.003**
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Total
20-49
50+
No changes Internal External Both
0 % 20 % 40 % 60 % 80 % 100 %
Total
Construction
Sales, hotel, etc.
Heavy manufact.
Other manufact.
Light manufact.
Transport&finance
Business services
No changes Internal External Both

85
operating on the European and global markets. In regionally and nationally oriented companies, on
the other hand, machine bureaucracy is a more widespread organisation form.
Obviously, the market position has some influence on the organisation form introduced by
companies. Two out of three companies operating on local markets only are organised according to
the traditional Fordist principles, whereas the share is just 39% among the companies that are
major players on the international market. In the latter category, we find the operational adhocracy
model rather widespread. The J-model is also more common in companies operating
internationally, regardless of whether they are major or minor players on the market.
How are companies' most important achieving criteria and organisation forms linked? The following
table gives an overview.
Figure 3.50. Organisation forms by company's most important achieving criterion
2=11.4, df=12, p=0.493
Most obvious is the fact that companies striving for innovation apply more flexible organisation
forms, such as the J-model (33%) and operational adhocracy (21%), more often than other
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Delivery period
Productivity
Quality
Flexibility
Innovation
Total
Machine bureaucracyProfessional bureaucracyJ-model Operational adhocracy

86
companies. On the other hand, in the companies that consider productivity and delivery time as
their key achieving criteria, the machine bureaucracy model is the most widespread.
3.2.4 Technology system and organisation models
In what way are the technological systems and the organisation forms linked? One could expect, for
example, that the application rate of telematic systems is higher in machine bureaucracy and in the
J-model, while telecommunication could be found more often in companies organised according to
the professional bureaucracy model. As in adhocracies, there is little need for technically mediated
communication. Therefore, we can expect little use of ICTs for workflow co-ordination.
Table 3.15. Linkages of organisation forms and technical systems
Organisation form Technical system
J-model
Centralised, integrated
Computerisation of components
Telematic systems for vertical co-
ordination
Machine bureaucracy
Centralised, specialised
Telematic systems for horizontal and
vertical co-ordination
Intensive use of other ICTs
Operative adhocracy
Decentralised, integrated
Low use of ICTs to support co-
ordination
Professional bureaucracy
Decentralised, specialised
Computerisation of components
Telecommunications systems to support
mutual adjustments
Such a perfect matching cannot be found in our data set, as Figure 3.51. shows. Actually, the
results indicate trends that are contrary to our expectations. We might speculate that most
companies do not restructure their business organisation in a very systematic and strategic way, as
ICT systems and organisation forms are not suitable in many cases.

88
Figure 3.52. Companies' ICT system by internal and external organisational changes
The intensity and modernity of ICT use and organisational restructuring also seem to be closely
related (Figure 3.53.). Among the companies that did not take or hardly took any measures in
organisational restructuring, the share of low ICTs users is the largest. Concerning all other
categories of organisational renewal: internal restructuring, external restructuring, the concurrent
introduction of both types of changes, the companies dominate that use modern ICTs in a more
advanced way. The share of advanced ICTs users is particularly big among companies that have
undergone both internal and external restructuring.
0 % 20 % 40 % 60 % 80 % 100 %
isolated on w ork
place level
isolated on company
level
telecommunication
telematics
Total
no changes
internal
external
both

91
Not surprisingly, there are differences according to size of company (Figure 3.56.). Almost every
third of larger companies has a call centre, whereas within smaller companies only one fifth of the
companies uses them.
Figure 3.56. Call centres by company size
2 = 12.4 df = 2, p 0.002**
3.2.6 Summary of the regional differences in organisational restructuring
In Table 7 of Appendix 3, we compiled the most obvious regional differences. Internal
organisational changes are widespread among companies in Flanders, Lazio and Portugal. Companies
in Niederösterreich, on the other hand, have introduced fewer internal changes but they have
restructured their relationships with other organisations more often.
Overall, companies in Portugal, the Stuttgart area and the Tampere region have undertaken more
organisational changes than companies elsewhere. Companies in the Stuttgart area have focused
their restructuring strategies on external changes. In the Tampere region, companies have
introduced quite often internal and external changes concurrently.
Companies in the Republic of Ireland cannot be characterised in a specific way with the exception
of having established subcontracting networks more often. In general, companies in the West
London area have introduced fewer organisational changes than elsewhere, but it seems to be more
common to firms in this region to subcontract functions or to relocate their activities and build up
strategic alliances with other companies.
26 %
21 %
31 %
0 % 5 % 10 % 15 % 20 % 25 % 30 % 35 %
Total
Small companies
Big companies