This paper proposes a theory of information leverage to explain the enabling role of IT in enhancing processperformancewithintheinformationprocessingparadigm. Thebasiccontentionisthatameasure of IT value can best be ascertained at the site of its application - the organizational process. A set of eight propositions provides the theoretical framework within which the design and use of IT and its impact on perfonnance may be studied. The central construct of the theory is information use rather than technology use. Information may be leveraged in feedback and feedforward modes and the specific information leverage pattern in the process is contingent on the level of state and motivational uncertainties faced by the process. The paper views IT as a lever of infonnation and the extent of its impact on performance is the extent of the fit between the designhse of IT and the information leverage needs. The bottom line is that the appropriateness of the design and use of IT determines process perfonna~icewhich in turn may affect organizational perfor- mance.
Tinaikar, Ranjit and Cooper, Gary, "Information Leverage Theory: A Process Level Approach to Understanding the IT-Performance Linkage" (1994). ICIS 1994 Proceedings. 34.