Profitability and information technology capital intensity on the insurance industry
Proceedings of the Twenty-First Annual Hawaii International Conference on Applications Track
Information technology and economic reorganizational
ICIS '89 Proceedings of the tenth international conference on Information Systems
An evaluative framework for research on the performance effects of information technology investment
ICIS '89 Proceedings of the tenth international conference on Information Systems
A microeconomic approach to the measurement of information technology value
Journal of Management Information Systems
Evaluation of strategic investments in information technology
Communications of the ACM
The productivity paradox of information technology
Communications of the ACM
Strategic information technology management: Perspectives on organizational growth and competitive advantage
Banking on information technology: converting IT spending into firm performance
Strategic information technology management
Shaping the future: business design through information technology
Shaping the future: business design through information technology
International dimensions of the productivity paradox
Communications of the ACM
An integrative research approach to assess the business value of information technology
Measuring information technology investment payoff
A read map for IS/IT evaluation
Measuring information technology investment payoff
Measuring information technology investment payoff
The Business Value of Computers: An Executive's Guide
The Business Value of Computers: An Executive's Guide
Corporation of the 1990s: Information Technology and Organizational Transformation
Corporation of the 1990s: Information Technology and Organizational Transformation
Information technology spending and the value of the firm: the case of Mexican banks
Creating business value with information technology
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This chapter examines the relationship between IT expenditure and bank profitability, efficiency, productivity, and performance for Mexican banks. The principal research method is correlation analysis between IT expenditure and four bank performance indices: a profitability index that combines bank profits, income, operational cost, and financial cost; a performance index that includes credit and bank income market share; a productivity index consisting of the number of employees, branches, and managers; and an efficiency index that includes banks' operational cost and income. The unit of analysis is the firm. The data are from the 18 banks comprising the Mexican banking industry from 1982-1992. when Mexico's banks were owned by the federal government. The study's interpretations are supported by interviews with four bank CIOs and a CEO, in office during the period. The main findings are that bank IT expenditure ratio is positively correlated to bank performance and productivity indices, whereas IT expenditure is not correlated with bank efficiency or profitability indices. There are fluctuations in the strength of correlation during the 11-year period, which are explained. The chapter results not only reject the productivity paradox but also provide insights to explain the paradox and IT contribution to the firm performance.