Abstract
IT productivity paradox is one of the biggest debates in the IS literature. Even though, recent studies have identified the theoretical and methodological errors that cause this paradox, we still don’t fully understand how IT investment influences overall firm performance. This paper presents an empirical study that examines the influences of IT investment on firm performance. More importantly, this study investigates the impact of IT governance and knowledge sharing on IT investment and firm performance relationship. The paper builds on (1) resource-based view, (2) knowledge-based view, and (3) contingency theory. The findings confirm the influences of IT investment on firm performance and the time lag in this relationship. Moreover, findings of this study suggest that the interaction of IT investment and IT governance has positive and significant impact on firm performance.
Recommended Citation
Turedi, Serdar and Zhu, Hongwei, "Business Value of IT: Revisiting Productivity Paradox through Three Theoretical Lenses and Empirical Evidence" (2012). AMCIS 2012 Proceedings. 18.
https://aisel.aisnet.org/amcis2012/proceedings/StrategicUseIT/18
Business Value of IT: Revisiting Productivity Paradox through Three Theoretical Lenses and Empirical Evidence
IT productivity paradox is one of the biggest debates in the IS literature. Even though, recent studies have identified the theoretical and methodological errors that cause this paradox, we still don’t fully understand how IT investment influences overall firm performance. This paper presents an empirical study that examines the influences of IT investment on firm performance. More importantly, this study investigates the impact of IT governance and knowledge sharing on IT investment and firm performance relationship. The paper builds on (1) resource-based view, (2) knowledge-based view, and (3) contingency theory. The findings confirm the influences of IT investment on firm performance and the time lag in this relationship. Moreover, findings of this study suggest that the interaction of IT investment and IT governance has positive and significant impact on firm performance.