Performance Impacts of Information Technology: Is Actual Usage the Missing Link?
AbstractThe relationship between investment in information technology (IT) and its effect on organizational performance continues to interest academics and practitioners. In many cases, due to the nature of the research design employed, this stream of research has been unable to identify the impact of individual technologies on organizational performance. This study posits that the driver of IT impact is not the investment in the technology, but the actual usage of the technology. This proposition is tested in a longitudinal setting of a healthcare system comprising eight hospitals. Monthly data for a three--year period on various financial and nonfinancial measures of hospital performance and technology usage were analyzed. The data analysis provides evidence for the technology usage--performance link after controlling for various external factors. Technology usage was positively and significantly associated with measures of hospital revenue and quality, and this effect occurred after time lags. The analysis was triangulated using three measures of technology usage. The general support for the principal proposition of this paper that "actual usage" may be a key variable in explaining the impact of technology on performance suggests that omission of this variable may be a missing link in IT payoff analyses.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 49 (2003)
Issue (Month): 3 (March)
Information Technology; IT Payoff; IT Usage; Healthcare; Longitudinal Study; Profitability; Quality;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Moez Bellaaj, 2008. "Technologies De L'Information Et Performance Organisationnelle : Différentes Approches D'Évaluation," Post-Print halshs-00522342, HAL.
- Premkumar, G. & Bhattacherjee, Anol, 2008. "Explaining information technology usage: A test of competing models," Omega, Elsevier, vol. 36(1), pages 64-75, February.
- Muhammad Hashim & Asfandyar Yousaf & Muhammad Jehangir & Samiullah Khan & Noor-ul-Hadi, 2012. "The Impact of Management Information System on the Overall Performance and Efficiency of the Workforce of the Accountant General (Peshawar). A Research Base Study," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(2), pages 166-181, April.
- Zand, Fardad & Van Beers, Cees & Van Leeuwen, George, 2011. "Information technology, organizational change and firm productivity: A panel study of complementarity effects and clustering patterns in Manufacturing and Services," MPRA Paper 46469, University Library of Munich, Germany.
- TINA M. Edgar A. Ghossoub, . "Economic Development and the Welfare Costs of Inflation It has been widely observed that the role of money in the ?nancial system varies across developing and advanced countries. While the connections," Working Papers 0034, College of Business, University of Texas at San Antonio.
- Philipp Köllinger, 2005. "Why IT Matters: An Empirical Study of E-Business Usage, Innovation, and Firm Performance," Discussion Papers of DIW Berlin 495, DIW Berlin, German Institute for Economic Research.
- Lechman, Ewa, 2012.
"Technology convergence and digital divides. A country-level evidence for the period 2000-2010,"
41849, University Library of Munich, Germany.
- Ewa Lechman, 2013. "Technology convergence and digital divides. A country-level evidence for the period 2000-2010," GUT FME Working Paper Series A 3, Faculty of Management and Economics, Gdansk University of Technology.
- Son, Minhee & Han, Kyesook, 2011. "Beyond the technology adoption: Technology readiness effects on post-adoption behavior," Journal of Business Research, Elsevier, vol. 64(11), pages 1178-1182.
- Simsek, Zeki & Lubatkin, Michael H. & Veiga, John F. & Dino, Richard N., 2009. "The role of an entrepreneurially alert information system in promoting corporate entrepreneurship," Journal of Business Research, Elsevier, vol. 62(8), pages 810-817, August.
- Fosso Wamba, Samuel & Lefebvre, Louis A. & Bendavid, Ygal & Lefebvre, Élisabeth, 2008. "Exploring the impact of RFID technology and the EPC network on mobile B2B eCommerce: A case study in the retail industry," International Journal of Production Economics, Elsevier, vol. 112(2), pages 614-629, April.
- Marc Bollecker & Wilfrid Azan, 2008. "Les frontières de la recherche en contrôle de gestion : une analyse des cadres théoriques mobilisés," Post-Print halshs-00522395, HAL.
- Fuentelsaz, Lucio & Gómez, Jaime & Palomas, Sergio, 2012. "Production technologies and financial performance: The effect of uneven diffusion among competitors," Research Policy, Elsevier, vol. 41(2), pages 401-413.
- Phillips-Wren, G. & Mora, M. & Forgionne, G.A. & Gupta, J.N.D., 2009. "An integrative evaluation framework for intelligent decision support systems," European Journal of Operational Research, Elsevier, vol. 195(3), pages 642-652, June.
- Li, Gang & Yang, Hongjiao & Sun, Linyan & Sohal, Amrik S., 2009. "The impact of IT implementation on supply chain integration and performance," International Journal of Production Economics, Elsevier, vol. 120(1), pages 125-138, July.
- Huh, Young Eun & Kim, Sang-Hoon, 2008. "Do early adopters upgrade early? Role of post-adoption behavior in the purchase of next-generation products," Journal of Business Research, Elsevier, vol. 61(1), pages 40-46, January.
- Goldfarb, Avi & Prince, Jeff, 2008. "Internet adoption and usage patterns are different: Implications for the digital divide," Information Economics and Policy, Elsevier, vol. 20(1), pages 2-15, March.
- Wong, Christina W.Y. & Lai, Kee-hung & Shang, Kuo-Chung & Lu, Chin-Shan & Leung, T.K.P., 2012. "Green operations and the moderating role of environmental management capability of suppliers on manufacturing firm performance," International Journal of Production Economics, Elsevier, vol. 140(1), pages 283-294.
- Chen, Yueh H. & Lin, Winston T., 2009. "Analyzing the relationships between information technology, inputs substitution and national characteristics based on CES stochastic frontier production models," International Journal of Production Economics, Elsevier, vol. 120(2), pages 552-569, August.
- Danming Lin & Qiang Liang & Zongling Xu & Runtian Li & Weimin Xie, 2008. "Does knowledge management matter for information technology applications in China?," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 489-507, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.