Technical efficiency analysis of information technology investments: a two-stage empirical investigation

2002 ◽  
Vol 39 (5) ◽  
pp. 391-401 ◽  
Author(s):  
Benjamin B.M. Shao ◽  
Winston T. Lin
Author(s):  
Myung Ko ◽  
Jan Guynes Clark ◽  
Daijin Ko

This article revisits the relationship between IT and productivity, and investigates the impact on information technology (IT) investments. Using the MARS techniques, we show that although IT Stock is the greatest predictor variable for productivity (Value Added), it is only significant as an interaction variable, combined with Non-IT Capital, Non-IT Labor, Industry, or Size.


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