Information technology infrastructure, organizational process redesign, and business value: An empirical analysis

Authors:
Ronald Ramirez;Nigel Melville;Edward Lawler
Affiliations:
Business School, University of Colorado Denver, United States;Stephen M. Ross School of Business, University of Michigan, Ann Arbor, United States;Marshall School of Business, University of Southern California, United States
Venue:
Decision Support Systems
Year:
2010

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Abstract

We extend current research examining synergies between information technology, process redesign, and firm performance in three ways: analyze a firm's entire IT and BPR portfolio, examine production and market value performance implications, and conduct analysis using a unique dataset of 228 firms between 1996 and 1999. We find a contingent association between IT, process redesign, and performance. The interaction of IT and BPR portfolios is positively associated with firm productivity and market value. However, we find mixed evidence of a difference in these impacts across different types of BPR. Insights for business investment in IT and process redesign are discussed.