Document Type
Article
Abstract
Contrary to theoretical arguments that suggest a positive association between investment in IT and improved financial performance, some empirical evidences suggested that no statistical association between IT spending and financial performance. This phenomenon is known as the “IT productivity paradox” Dos Santos et al. [21] argued that non-innovative technologies are not likely to improve a firm’s market value or financial performance. Automatic teller machines (ATMs) are one of the well-known and non-innovative representatives of IT investment. By examining the relationship between ATMs investment and financial measures, we find that ATMs investments improve financial performance and lower cost rates, but no consistent conclusion on the measures of growth. Contrary to Dos Santos et al. [21] which argued that non-innovative technologies are not likely to improve a firm’s market value or financial performance. The empirical results show that the phenomenon of “IT productivity paradox” does not come out in this case. The non-innovative technologies do not always result in productivity paradox.
Recommended Citation
Hung, Chia-Sheng, "Does the Non-innovative IT Explain the “Productivity Paradox”?" (2007). ICEB 2007 Proceedings (Taipei, Taiwan). 29.
https://aisel.aisnet.org/iceb2007/29