Financial impact of information processing
Journal of Management Information Systems
Journal of Management Information Systems
Recent applications of economic theory in Information Technology research
Decision Support Systems
The demand for information technology capital: an empirical analysis
Decision Support Systems
The productivity paradox of information technology
Communications of the ACM
Assessing the impact of information technology on labor productivity: a field study
Decision Support Systems - Special issue: economics of information systems
Information technology impact on process output and quality
Management Science - Special issue: Frontier research on information systems and economics
The substitution of information technology for other factors of production: a Firm Level Analysis
Management Science - Special issue: Frontier research on information systems and economics
Information Technology Effects on Firm Performance As Measured by Tobin's Q
Management Science
Information and Management
The Business Value of Computers: An Executive's Guide
The Business Value of Computers: An Executive's Guide
Information Technology and Productivity: Evidence from Country-Level Data
Management Science
Measuring DEA efficiency in internet companies
Decision Support Systems
Information Technology and Management
Expert Systems with Applications: An International Journal
Exploring IT Governance in Theory and Practice in a Large Multi-National Organisation in Australia
Information Systems Management
Information Resources Management Journal
International Journal of IT/Business Alignment and Governance
The impact of XBRL adoption in PR China
Decision Support Systems
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The business value of information technology (IT) is an extremely important but highly controversial issue that has sparked a great deal of research during the past two decades. Closely related to the issue are the productivity paradox of information systems and the substitutability of IT stock for both traditional capital and labor. Numerous studies have been undertaken to either explain or dispel the paradox. This paper represents one significant extension to previous work and is a further effort to jointly investigate the business value issue, the paradox, and the potential of the substitution between IT capital and ordinary capital and labor, by estimating the IT business value in terms of the impact of IT on technical efficiency, based on the constant elasticity of substitution (known as CES) stochastic production frontier model, at three levels: firm, industry, and sector. The major findings include: the relationship between technical efficiency and IT investment is not robust with respect to the specifications of production frontiers; the productivity paradox is still existent, inconsistent with conventional wisdom, IT has substantial impacts on the five parameters associated with the CES production process; IT stock, traditional capital, and traditional labor are not pairwise substitutable; IT stock appears to be as important as capital, but it is not possible to use IT stock to replace the role of labor entirely; decreasing returns to scale are found irrespective of the levels of IT investments, and technical efficiency tends to decrease as IT investments increase; the industry-level analysis suggests that IT capital is more important for the services industries than for the manufacturing industries; and the sector analysis seems to indicate that the services sector is just slightly less technically efficient than the manufacturing sector.