Information Technology And The Productivity Paradox: Getting The Questions Right

1995 ◽  
Vol 3 (3-4) ◽  
pp. 177-182 ◽  
Author(s):  
Ernst R. Berndt ◽  
Thomas W. Malone
Keyword(s):  
Information Technology ◽  
Productivity Paradox

scholarly journals Information technology (IT) productivity paradox in the 21st century

2015 ◽  
Vol 64 (4) ◽  
pp. 457-478 ◽  
Author(s):  
Mahmood Hajli ◽  
Julian M. Sims ◽  
Valisher Ibragimov
Keyword(s):  
Information Technology ◽  
Factor Productivity ◽  
It Investment ◽  
Firm Level ◽  
High Positive Correlation ◽  
Content Type ◽  
Positive Effects ◽  
Productivity Paradox ◽  
It Productivity Paradox ◽  
It Productivity

Purpose – Since the 1970s productivity growth in most economies slowed, while information and communication technology expenditures increased: the “information technology (IT) productivity paradox.” Some researchers reported an end to the paradox, but this is most likely due to IT industry growth approaching the Year 2000 phenomenon. The purpose of this paper is to update IT productivity paradox research. Design/methodology/approach – For comparability this research replicates methods employed by previous studies but employs a two-level approach: first macroeconomic indicators; second labor and multi-factor productivity. Findings – Findings suggest IT investment has high positive correlation with gross domestic product growth, but not labor or multi-factor productivity. This ambiguity suggests the paradox is still poorly understood. Research limitations/implications – The findings are not conclusive; the authors cannot confirm or reject the existence of the productivity paradox. The global recession and banking crisis makes it prudent to wait until recovery before analyzing data from that period. Practical implications – Lack of convincing evidence supporting positive effects from IT investment suggests some firms benefit from IT investment, but not others, and that IT investment has questionable returns. Social implications – Firm level studies might find IT investment benefits some firms, but lack of convincing macroeconomic level evidence of positive effects of IT investment suggests the paradox still exists. Originality/value – This research updates the IT productivity paradox demonstrating the phenomenon is still poorly understood and thus worthy of further study, questioning the benefits of IT investment for industry and national economies.

The productivity paradox of information technology: The Ghanaian bank–level evidence

2022 ◽  
Author(s):  
Isaac Boadi ◽  
John Kwaku Mensah Mawutor ◽  
Modupeola Adefunso Dzorka ◽  
Thompson Aneyire Kubaje
Keyword(s):  
Information Technology ◽  
Productivity Paradox

Information Technology Spending and the Value of the Firm

2011 ◽  
pp. 146-165
Author(s):  
Carlos J. Navarrete ◽  
James B. Pick
Keyword(s):  
Information Technology ◽  
Federal Government ◽  
Commercial Banks ◽  
Banking Industry ◽  
Positive Impact ◽  
The Real ◽  
Market Values ◽  
Productivity Paradox ◽  
Monetary Value ◽  
The Relationship

This paper analyzes the relationship between IT expenditure and the monetary value of organizations. Based on the case of the Mexican banking industry from 1982–1992, the paper’s hypotheses test the relationship between IT expenditure and the real and perceived market values of banks. Correlations are performed between annual IT expenditures for a 10 year period —when Mexico’s commercial banks were owned by the federal government— and bank selling prices, when the industry divestiture took place in 1992. The main findings are that IT spending has a positive impact on the value of the firm, when the value of the firm reflects the change of ownership or the control of the firm. Second, firms spending more on IT do not tend to reach higher selling prices. Other findings are presented. The model and its results are discussed in terms of the literature about value of investment and the productivity paradox.

Business Value of Information Technology

2014 ◽  
pp. 82-90
Author(s):  
Jorge A. Romero
Keyword(s):  
Information Technology ◽  
Value Of Information ◽  
Business Value ◽  
Timely Manner ◽  
Productivity Paradox ◽  
Different Types

This chapter begins with a discussion of the business value of information technology and then goes on to discuss productivity paradox studies and the different types of benefits of information technology, including operational, tactical, and strategic. It also discusses when to intensify competition or leverage advantages in a timely manner.

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