A hybrid performance measure system for e-business investments in high-tech manufacturing: An empirical study

  • Authors:

  • Ing-Long Wu;Jian-Liang Chen

  • Affiliations:

  • Department of Information Management, National Chung Cheng University, 168 University Road, Ming-Hsiung, Chia-Yi, Taiwan;Department of Information Management, National Chung Cheng University, 168 University Road, Ming-Hsiung, Chia-Yi, Taiwan

  • Venue:
  • Information and Management
  • Year:
  • 2006

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Abstract

For over a decade, empirical studies on the organizational performance of IT investment have been far from conclusive, and one major issue that has led to an ongoing debate is whether inadequate methods are applied in measuring IT values. Traditional measures have primarily been financial: return on investment and return on sales. Researchers have suggested a need to use other measures, although there has been little agreement on which precisely to use. Moreover, empirical studies showed limitations in using only a single organization-level measure, whereas a more complete assessment could involve measures from several levels. In addition, benefits from IT investments are normally realized over time. This study used an integrative assessment framework with a three-level structure of organizational hierarchy: corporate strategies, manufacturing decisions, and operational activities, along with a time-lag effect. Different levels of performance measures were examined over different time periods. The framework was verified by survey data. Our results indicated that time tag had positive impact on the performance measures of corporate strategies and that they were significantly correlated with operational activities.