To compete in the current marketplace, organizations must improve the performance of their operations. Productivity measures have provided the basis for determining performance (Chew 1988). Information technology (IT) is undergoing increasingly critical examination regarding the value of its contribution to the organization’s mission (Brynjolfsson and Hitt 1996, Brynjolfsson 1993, Drucker 1991, Panko 1991). Although a clear increase in productivity from the use of IT has not been found, organizations still turn to IT to improve their performance. This "productivity paradox" has long puzzled both researchers and practitioners. Because organizations continue to implement new IT, we must conclude either that firms are implementing IT without gaining benefits or that some of the contributions IT makes have not been adequately measured.
Lomerson, William and Renwick, Janet, "Performance Analysis in Information Technology: Identifying Product and Service Contributions" (1998). AMCIS 1998 Proceedings. 296.