Reexamining the impact of information technology investment on productivity using regression tree and multivariate adaptive regression splines (MARS)

  • Authors:
  • Myung Ko;Kweku-Muata Osei-Bryson

  • Affiliations:
  • Department of Information Systems and Technology Management, College of Business, The University of Texas at San Antonio, San Antonio, USA 78249;Department of Information Systems and The Information Systems Research Institute, Virginia Commonwealth University, Richmond, USA 23284

  • Venue:
  • Information Technology and Management
  • Year:
  • 2008

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Abstract

As health care costs increased significantly in the 1990s, investments in information technology (IT) in the health care industry have also increased continuously in order to improve the quality of patient care and to respond to government pressure to reduce costs. Several studies have investigated the impact of IT on productivity with mixed conclusions. In this paper, we revisit this issue and re-examine the impact of investments in IT on hospital productivity using two data mining techniques, which allowed us to explore interactions between the input variables as well as conditional impacts. The results of our study indicated that the relationship between IT investment and productivity is very complex. We found that the impact of IT investment is not uniform and the rate of IT impact varies contingent on the amounts invested in the IT Stock, Non-IT Labor, Non-IT Capital, and possibly time.