Impact of information technology investment: An empirical assessment

Assessing the impact of information technology (IT) investment on organizational performance has been found to be problematic. Past studies of relationships between information technology investment and organizational performance has generally produced mixed, inconclusive, and even confusing results...

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Bibliographic Details
Published in:Accounting, management, and information technologies management, and information technologies, 1993, Vol.3 (1), p.23-32
Main Authors: Mahmood, Mo Adam, Mann, Gary J.
Format: Article
Language:English
Subjects:
Information technology
IT business value
Organizational performance
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Summary:Assessing the impact of information technology (IT) investment on organizational performance has been found to be problematic. Past studies of relationships between information technology investment and organizational performance has generally produced mixed, inconclusive, and even confusing results. The research described here attempts to demonstrate the impact of IT investment by investigating relationships between sets of IT investment measures and organizational performance measures. The results reveal positive and significant relationships between certain of the IT investment measures and organizational performance measures used in the study, indicating that organizations with greater levels of IT investment also had higher performance, as measured by return on investment, return on sales, sales per employee, sales by total assets, and market value to book value.
ISSN:0959-8022
1873-7595
DOI:10.1016/0959-8022(93)90007-S