The decision-making paradigm of organizational design
Management Science
Modeling coordination in organizations and markets
Management Science
A microeconomic approach to the measurement of information technology value
Journal of Management Information Systems
Recent applications of economic theory in Information Technology research
Decision Support Systems
The productivity paradox of information technology
Communications of the ACM
The interdisciplinary study of coordination
ACM Computing Surveys (CSUR)
Journal of Management Information Systems
Productivity and information technology: the elusive connection
Management Science
Modelling the business process to derive organisational requirements for information technology
ACM SIGOIS Bulletin - Special issue: business process reengineering
The Business Value of Computers: An Executive's Guide
The Business Value of Computers: An Executive's Guide
Designing Complex Organizations
Designing Complex Organizations
The Marketing Information Revolution
The Marketing Information Revolution
Hi-index | 0.00 |
We know from the information processing perspective within the theory of organizations that IT can reduce coordination costs by increasing an organization's information processing capacity. Purpose of this paper is to empirically examine the relationship between greater investments in information technology and lower coordination costs on firm-level data. Two high-level measures of coordination costs are defined based on the information processing perspective within the theory of organizations. Our hypothesis that greater IT investments should be correlated with lower coordination costs is tested with both measures on longitudinal data from a cross-sectional sample of 18 large Italian companies over an 8-year period between 1988 and 1995. Results on this sample seem to support our hypothesis by showing a significant and negative correlation both aggregately and on sub-samples of data clustered by industry.