The Rapid Adoption of Data-Driven Decision-Making

Author(s)
Brynjolfsson, Erik; McElheran, Kristina
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Abstract
We provide a systematic empirical study of the diffusion and adoption patterns of data-driven decision making (DDD) in the U.S. Using data collected by the Census Bureau for a large representative sample of manufacturing plants, we find that DDD rates nearly tripled (11%-30%) between 2005 and 2010. This rapid diffusion, along with results from a companion paper, are consistent with case-based evidence that DDD tends to be productivity-enhancing. Yet certain plants are significantly more likely to adopt than others. Key correlates of adoption are size, presence of potential complements such as information technology and educated workers, and firm learning.
Date issued
2016-05
URI
http://hdl.handle.net/1721.1/108650
Department
Sloan School of Management
Journal
American Economic Review
Publisher
American Economic Association
Citation
Brynjolfsson, Erik and McElheran, Kristina. “The Rapid Adoption of Data-Driven Decision-Making.” American Economic Review 106, no. 5 (May 2016): 133–139. © 2016 American Economic Association
Version: Final published version
ISSN
0002-8282
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