Document Type



Business executives are paying large bills on information technologies every year hoping to stay competitive in the network era. According to the literature, IT paradox still exists. We are not sure the big investments on IT will result in positive returns. An improved event study methodology is proposed to address the suspected causes for the paradox, such as mismeasurement of performance, time lags for gains to show up, mismanagement of IT and redistribution of benefits. Using investment on e-channel as a context, a research model based on long-term event study is proposed to investigate performance gains at different levels.