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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/14215
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| Title: | MANAGEMENT STRATEGY, INVESTMENT IN IT, AND PRODUCTIVITY |
| Authors: | Laudon, Kenneth C.
Marr, Kenneth L.
Sessions, David |
| Issue Date: | Jun-1995 |
| Publisher: | Stern School of Business, New York University |
| Series/Report no.: | IS-95-07 |
| Abstract: | Previous literature on IT and productivity does not take into account
different organizational goals and different management strategies for
achieving these goals. But productivity and ROI relationships can easily
differ as organizational goals and management strategies differ.
Therefore, we argue, it is no longer appropriate to ask, "Does IT
lead to productivity enhancement." or "Is the ROI on IT
investments large or small or nonexistent? The better question is under
what conditions of organizational climate and management choice does IT
enhanced productivity result. To illustrate the powerful effect of
organizational goals and management strategy on IT-productivity
relationships, we examine the twenty year history of two of the largest
IT users in the world: the Internal Revenue Service and the Social
Security Administration. And we find that these two very similar
agencies experienced very different results from massive investments in
IT despite sharing a similar production function. There is nothing in
micro economics however to explain the different strategies pursed by
these managers. Instead we must turn to political and sociological
models of organizations to understand the social construction of
productivity results. |
| URI: | http://hdl.handle.net/2451/14215 |
| Appears in Collections: | IOMS: Information Systems Working Papers
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