A Microeconomic Approach to the Measurement of Information Technology Value.

Author List: Alpar, Paul; Kim, Moshe;
Journal of Management Information Systems, 1990, Volume 7, Issue 2, Page 55-69.
The problem of measuring the impact of information technology on economic performance at the business unit or enterprise level is receiving increased attention. We develop a methodology based on the microeconomic theory of production and apply the model to data from the banking industry. In addition, we compare our methodology to approaches based on key ratios of information technology deployment. Both procedures are applied to the same set of data. The results show that reasoning about information technology value based on key ratios may be misleading, especially when the figures are only osculated for a cross-section of data.
Keywords: key ratios of firm performance and information technology deployment; Measurement of information technology value; production in commercial and retail banking; translog cost function
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#271 0.241 technology investments investment information firm firms profitability value performance impact data higher evidence diversification industry payoff return findings decisions greater
#143 0.204 value business benefits technology based economic creation related intangible cocreation assessing financial improved key economics assess question created create understanding
#263 0.133 instrument measurement factor analysis measuring measures dimensions validity based instruments construct measure conceptualization sample reliability development develop responses assess use
#67 0.107 production manufacturing marketing information performance systems level impact plant model monitor does strategies 500 unit present fortune integrated sales plants
#294 0.084 development systems methodology methodologies information framework approach approaches paper analysis use presented applied assumptions based proposed described examines basis proposes
#200 0.061 banking bank multilevel banks level individual implementation analysis resistance financial suggests modeling group large bank's services levels national data early