Abstract
This study represents one of the first attempts at disaggregating the heterogeneous IT capital category into its salient constituents and examining their respective contributions to the value of the firm. Specifically, we focus on three hardware categories: mainframe computers, minicomputers, and microcomputers. Rather than simply reflecting different technological characteristics, these categories of computers also reflect the different kinds of applications that typically run on these systems. Moreover, we explicitly take into account the degree to which a company’s employees are networked, since connectivity is likely to affect the payoff. We use new data on the capital stock of these categories of systems as well as the level of computer networking at the firm level for a nearly balanced panel of large firms spanning the eight year period 1987 to 1984, representing more than 3,600 observations.
Recommended Citation
Gurbaxani, Vijay; Melville, Nigel; and Kraemer, Kenneth, "Disaggregating the Return on Investment to IT Capital" (1998). ICIS 1998 Proceedings. 41.
https://aisel.aisnet.org/icis1998/41