Several studies support the positive link between information technology capability and firm performance, including Bharadwaj (2000) and Santhanam and Hartono (2003), which appeared in MIS Quarterly. We conducted a study to see if this link is still statistically significant. It is now over a decade since the first study was published, during which several significant developments in the IT industry have taken place. Unlike the 1990s, when proprietary information systems prevailed, the 2000s are characterized by more standardized and homogeneous information systems and with the rapid adoption of ERP and web technologies. Thus, we attempted to reexamine the link between IT capability and firm performance with data from the 2000s. Surprisingly, the results of our current analysis showed no significant link between IT capability and firm performance. Contrary to earlier studies, IT leader firms in our study didn’t show better financial performance than control firms. We discuss several possible causes for the change in findings and present an in-depth comparison in business performance between the two groups—IT leader and control—over a period extending from 1991 to 2007.
Executive information systems (EIS) are now successfully providing computer support for senior executives in a growing number of organizations. Previous attempts to support senior executives are discussed with a focus on why these attempts failed and what was learned that should be incorporated in future efforts. An EIS development framework is presented that includes a structural perspective of the elements and their interaction, the development process, and the dialog between the user and the system. Survey data from 50 firms having an EIS are presented and discussed in the context of the development framework. While most of the findings confirm conventional EIS wisdom, others are somewhat surprising, such as the significant role that in formation systems management often plays in initiating the development of an EIS or serving as its operational sponsor. The findings lead to additional suggestions for EIS research opportunities, as well as predictions about the future nature of EIS.