Financial impact of information processing
Journal of Management Information Systems
Statistics: a computer integrated approach
Statistics: a computer integrated approach
A microeconomic approach to the measurement of information technology value
Journal of Management Information Systems
The productivity paradox of information technology
Communications of the ACM
Assessing the impact of information technology on organizational performance
Strategic information technology management
Shaping the future: business design through information technology
Shaping the future: business design through information technology
Does information technology lead to smaller firms?
Management Science
Management Information Systems: Managing Information Technology in the Networked Enterprise
Management Information Systems: Managing Information Technology in the Networked Enterprise
Computer Based Production and Inventory Control
Computer Based Production and Inventory Control
The Business Value of Computers: An Executive's Guide
The Business Value of Computers: An Executive's Guide
HICSS '96 Proceedings of the 29th Hawaii International Conference on System Sciences Volume 4: Organizational Systems and Technology
The impact of enterprise resource planning systems on firm performance
ICIS '00 Proceedings of the twenty first international conference on Information systems
Knowledge worker constraints in the productive use of information technology
ACM SIGCPR Computer Personnel
E-Commerce Infrastructure Success Factors for Small Companies in Developing Economies
Electronic Commerce Research
A Process-Centered IT ROI Analysis with a Case Study
Information Systems Frontiers
Special issue: impacts of information technology investment on organizational performance
Journal of Management Information Systems - Special issue: Impacts of information technology investment on organizational performance
Journal of Management Information Systems - Special issue: Impacts of information technology investment on organizational performance
Information systems outsourcing: a study of pre-event firm characteristics
Journal of Management Information Systems
Information Technology as an Enabler of Growth in Firms: An Empirical Assessment
Journal of Management Information Systems
Knowledge-based strategies: a foundation of a typology
International Journal of Information Technology and Management
Information Technology and Management
Journal of Management Information Systems
Journal of Management Information Systems
Competitive Environment and the Relationship Between IT and Vertical Integration
Information Systems Research
An elusive antecedent of superior firm performance: The knowledge management factor
Decision Support Systems
Journal of Management Information Systems
Cost-Benefit analysis of security investments: methodology and case study
ICCSA'05 Proceedings of the 2005 international conference on Computational Science and Its Applications - Volume Part III
Benchmarking the IT productivity paradox: Recent evidence from the manufacturing sector
Mathematical and Computer Modelling: An International Journal
Hospital information systems: Measuring end user computing satisfaction (EUCS)
Journal of Biomedical Informatics
Evaluating the impact of IT investments on productivity: a causal analysis at industry level
International Journal of Information Management: The Journal for Information Professionals
An Empirical Study of the Casual Relationship Between IT Investment and Firm Performance
Information Resources Management Journal
The Value Relevance of IT Investments on Firm Value in the Financial Services Sector
Information Resources Management Journal
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The performance impacts of information technology (IT) investments in organizations have received considerable attention in recent years. In this research, we investigate the cost factors that are affected by such investments. We analyze a data set containing the information technology budgets of over 400 large and medium-sized U.S. corporations. We find that higher IT investments are associated with lower average production costs, lower average total costs, and higher average overhead costs. We also find that larger companies spend more on information technology as a percentage of their revenues than smaller companies. We do not find any evidence that information technology reduces labor costs in organizations. We explain our findings, which are often counterintuitive but interesting, using basic microeconomic theory of the firm.