Information Technology and company Performance

6 Feb

I Came across this article which I feel offers great insight for managers to help them understand why Information technology measurement is so important, this article is called
“Information Technology and Organizational Performance An Integrative Model of IT Business Value” and is written by NIGEL MELVILLE, KENNETH L. KRAEMER AND
VIJAY GURBAXANI, I found it on a website citeseerx.ist.psu.edu/viewdoc/download?doi…1… – United States”
It Cleary states that there is a clear importance of researchers ,managers and policy makers on the way information technology can benefit a company’s performance, a certain degree of uncertainty lies about what we know and don’t know. The authors of this article have completed a review and came up with the association between information technology and organisational performance and how there are differences in how companies see key elements and there interrelationships.
They then go onto building a Model of IT business value based in a resource based veiw of the firm, this model goes onto integrate the different strands of research into a single framework. From this they then look at how other researchers have modelled IT business value, they concluded that the locus of IT business value generation is the company that has invested in and deployed IT resources, they go on to call this the “focal firm”, But the point that I found to be most interesting in terms of the use managers will get from this is that they have looked at external factors also and how they play a major role in shaping the extent to which IT business value can be generated. They seem to focus in on one area in particular and that is the area of competitive environment- this will include industry and characteristics and trading partners, also they used the macro environment, from this the researchers then derived a integrative model of IT business value that is made up of three domains 1.focal firm,2. Competitive enviromnet 3.macro environment, they then used a resource based view between each of the 3 mention above and how they shape the relationship between IT and Organisation performance see model below-

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2 Responses to “Information Technology and company Performance”

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