Professor and Chairman, Information Systems and Management Sciences Department, College of Business Administration, University of Texas, Arlington; Director, Center for Information Technologies Management
This paper examines the changes engendered when moving from a structured to an object-oriented systems development approach and reconciles the differing views concerning whether this represents an evolutionary or revolutionary change. Author co-citation analysis is used to elucidate the ideational and conceptual relationships between the two approaches. The difference in conceptual distance at the analysis and design level compared to that at the programming level is explained using Henderson's framework for organizational change. The conceptual shift during analysis and design is considered architectural, whereas for programming it is deemed merely incremental. The managerial implications of these findings are discussed and suggestions for improving the likelihood of success in the adoption of object-oriented systems development methods are provided.
There have been several attempts in the past to assess the impact of information technology on firm performance that have yielded conflicting results. Researchers have been unable to conclude that IT spending by an organization results in increases in key performance indicators. Two major recent studies have attempted to address the issue by putting greater emphasis on the theoretical underpinnings of the solution to the problem, although they chose different theoretical frameworks. The present study extends that work to yield a framework that shows the relationship between firm performance and both IT and corporate investments. The data used to validate the framework exceeds that used in previous analyses in both quality and quantity, thereby permitting appropriate statistical analyses. A large database consisting of over 2,000 observations of 624 firms was constructed, using data provided by the International Data Corporation, Standard & Poor's Compustat, and Moody's. This allowed the authors to pose the following research questions: (a) Can the relationship between sets of investment measures and firm performance be demonstrated (as opposed to individual measures)? (b) How are IT investments related to a firm's market value, market share, sales, and assets? and (c) Is there a difference in the effect of computer capital and noncomputer capital?