Applied multivariate statistical analysis
Applied multivariate statistical analysis
A microeconomic approach to the measurement of information technology value
Journal of Management Information Systems
Productivity of Information Systems in the Healthcare Industry
Information Systems Research
Advanced topics in global information management
An examination of the trade-off between internal and external IT capabilities
The Journal of Strategic Information Systems
Information Technology as an Enabler of Growth in Firms: An Empirical Assessment
Journal of Management Information Systems
Journal of Management Information Systems
Building a Common Understanding of Critical Success Factors for an ERP Project Implementation
Proceedings of the 2008 conference on Collaborative Decision Making: Perspectives and Challenges
Evaluating decision making performance in the GDSS environment using data envelopment analysis
Decision Support Systems
An empirical study of IT as a factor of production: The case of Net-enabled IT assets
Information Systems Frontiers
Organizational Culture and E-Government Performance: An Empirical Study
International Journal of Electronic Government Research
Thirst for Business Value of Information Technology
International Journal of Technology Diffusion
A Lag Effect of IT Investment on Firm Performance
Information Resources Management Journal
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The influence of IT investments on organizational performance is revisited. Bounded rationality, organizational controls, and political forces may constrain optimal selection of inputs and appropriate substitution between inputs. For example, firms may not be able to attain an optimal level of IT by substituting IT for labor (for reasons such as pressure from the labor union). Besides estimating a link between IT investments and firm output, this paper presents a study of the link between IT investment levels and the efficiency of processes.Nonparametric and parametric techniques were applied to financial data on hospitals collected over a period of eighteen years. We found that cost and technical and allocative efficiencies are statistically significant in the production framework. We also found that hospitals that were characterized by high technical efficiency also used a greater amount of IT capital than firms that exhibited low technical efficiency. A group of hospitals exhibiting high technical efficiency also exhibited low allocative efficiency, indicating that, while processes may have been efficient, resource allocation and budgeting between various categories of capital and labor have not been efficient. Our results also differ from previously published results because we find that IT labor had a negative contribution to productivity and that non-IT capital had a greater contribution to productivity than IT capital.