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An Integrative Model of Information Systems Spending Growth

Author

Listed:
  • Vijay Gurbaxani

    (Graduate School of Management, University of California, Irvine, California 92717)

  • Haim Mendelson

    (Graduate School of Business, Stanford University, Stanford, California 94305)

Abstract

This paper develops a model of the growth of information systems expenditures in the United States. The model incorporates two major factors that influence the rate and pattern of spending growth—the diffusion of technological innovation and the effect of price on the demand for computing. Traditional studies have focused on the role of innovation while ignoring the effects of price on the growth process. We show that while information systems expenses initially grew following an S-curve, more recent growth has converged to an exponential pattern. These patterns are consistent with our integrative price-adjusted S-curve growth model.

Suggested Citation

  • Vijay Gurbaxani & Haim Mendelson, 1990. "An Integrative Model of Information Systems Spending Growth," Information Systems Research, INFORMS, vol. 1(1), pages 23-46, March.
    • Handle: RePEc:inm:orisre:v:1:y:1990:i:1:p:23-46
    DOI: 10.1287/isre.1.1.23
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    Citations

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    Cited by:

    1. Sanjeev Dewan & Kenneth L. Kraemer, 2000. "Information Technology and Productivity: Evidence from Country-Level Data," Management Science, INFORMS, vol. 46(4), pages 548-562, April.
    2. Vijay Gurbaxani & Nigel Melville & Kenneth Kraemer, 2000. "The Production of Information Services: A Firm-Level Analysis of Information Systems Budgets," Information Systems Research, INFORMS, vol. 11(2), pages 159-176, June.
    3. Jan Svanberg & Tohid Ardeshiri & Isak Samsten & Peter Öhman & Presha E. Neidermeyer & Tarek Rana & Natalia Semenova & Mats Danielson, 2022. "Corporate governance performance ratings with machine learning," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 29(1), pages 50-68, January.
    4. Eric Shih & Kenneth L. Kraemer & Jason Dedrick, 2007. "Research Note: Determinants of Country-Level Investment in Information Technology," Management Science, INFORMS, vol. 53(3), pages 521-528, March.
    5. Sun, Bing & Yang, Xueting & Zhong, Shen & Tian, Shengnan & Liang, Tian, 2024. "How do technology convergence and expansibility affect information technology diffusion? Evidence from the internet of things technology in China," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    6. Aslan Lotfi & Zhengrui Jiang & Ali Lotfi & Dipak C. Jain, 2023. "Estimating Life Cycle Sales of Technology Products with Frequent Repeat Purchases: A Fractional Calculus-Based Approach," Information Systems Research, INFORMS, vol. 34(2), pages 409-422, June.
    7. Brynjolfsson, Erik. & Hitt, Lorin M. & Massachusetts Institute of Technology. Industrial Performance Center., 1994. "Computers and economic growth : firm-level evidence," Working papers 3714-94. CISR WP ; no. 27, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    8. Meade, Nigel & Islam, Towhidul, 2015. "Forecasting in telecommunications and ICT—A review," International Journal of Forecasting, Elsevier, vol. 31(4), pages 1105-1126.

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