ON THE STATE-OF-THE-ART: METHODS FOR EVALUATING THE PERFORMANCE EFFECTS OF INVESTMENTS IN INFORMATION TECHNOLOGY

Abstract

IT creates impacts at several levels in the firm and often indirectly contributes to firm profitability. The problem IS researchers face is identifying robust methods that give reliable results. This paper reports on state-of-the-art methods in IT value research, reviews eleven major empirical studies and suggests three fundamental classes of considerations for conducting successful IT value research. To illustrate methodological advance, new results are presented from two recently completed IT value studies in financial services and manufacturing. The paper concludes by suggesting untapped theory bases that have the most to offer IT value research.