Ourprojectisdesignedtoinvestigatetheimpactsof informationtechnology(IT)investmentson“intermediate”performance variables as opposed to aggregate fm level measures (such as market s h m and profitability). Given the reported potential of IT to streamline administrative processes in organizations, our first objective is to contrast the impacts of IT investments on labor and administrativeproductivity. Further, we observe that none of the empirical studies to date have examined the relationship between IT investments and the utilization of a firm’s resources such as inventory and assets. Resource utilizationmevicsarereferredtoasactivityratios. Giventheincreasingattentiontotheprocessreengineeringphenomenon, it appears that the link between key activity measures and IT investments needs to be investigated. Hence, the second objective of our study is to assess the impact of IT investments on activity ratios.