Information Intensity And Impact Of IT Investments On Productivity: An Industry Level Perspective

Topics:
Information Technology Strategy
Tags:
Industry,
Information Technology,
IT Investment,
Management,
Performance,
Strategy
Source:
Florida Atlantic University

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Overview: Does it pay to invest in IT? Research over the last two decades has resulted in mixed findings. While many studies have shown a positive and significant relationship between IT (Information Technology) investments and firm productivity and performance measures, the question of causality remains: Do higher IT investments contribute to better performance or does better performance contribute to higher IT investments? This paper examines this issue using explicit causal models and industry level data. The results suggest that there is a significantly positive correlation as well as a significantly positive causal relationship between IT investments and productivity. IT investments do contribute to productivity in most of the industries in our sample.

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Format: PDF | Size: 51KB | Date: Jun 2003 | Pages: 13

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