Infoeconomics

2020 ◽  
pp. 306-326
Keyword(s):  
Cloud Computing ◽  
Big Data ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
Process Management ◽  
Management Model ◽  
Costs And Benefits ◽  
Productivity Paradox ◽  
It Productivity Paradox ◽  
It Productivity

The chapter discusses economics of informing or infoeconomics, which refers to costs and benefits of informing agents and to their contribution to organizational performance. Controversies questioning contributions of IT/IS to productivity (IT productivity paradox) and to competitiveness (IT commodification argument) are discussed. Several methods of assessing costs and benefits of informing agents are proposed. Assessing benefits from IT/IS, data, and knowledge is challenging since their impact is usually not immediately visible. The challenges have become more pressing with the data analytics and big data trends. Several research cases are used to demonstrate relationships between IVO aspects and infoeconomics. It is argued that a business process management model and balanced scorecard methodology are reliable guides for study and management of infoeconomics. The implications of big data and cloud computing on infoeconomics are discussed throughout the chapter.

Infoeconomics

2014 ◽  
pp. 256-275
Keyword(s):  
Organizational Performance ◽  
Balanced Scorecard ◽  
Direct Costs ◽  
Costs And Benefits ◽  
The Balanced Scorecard ◽  
Productivity Paradox ◽  
It Productivity Paradox ◽  
Business Information ◽  
Productivity Gains ◽  
It Productivity

The chapter discusses economics of informing or infoeconomics, which refers to costs and benefits of informing agents and to their contribution to organizational performance. Controversies questioning contributions of IT/IS to productivity (IT productivity paradox) and to competitiveness (IT commodification argument) are discussed. It is argued that new infoeconomic measurement and better management may assist in leveraging productivity gains from the microeconomic to the macroeconomic level. Several methods of assessing costs and benefits of informing agents are proposed. It is further argued that the commodification argument points correctly that IT is no longer scarce but fails to account for a management factor and still prohibitive direct costs. Assessing benefits from IT/IS is quite challenging since these usually have support roles in organizations. The assessment of benefits of data, knowledge, and information is even more challenging since it depends on familiarity and hindsight. Valuing of professional knowledge is particularly important because it mediates in creation of business information. The challenges have become more pressing with the data analytics and big data trends. However, research lags behind. It is further argued that matching costs and benefits of informing agents is usually applied to a particular IS and calculated in some form of financial returns compared with fixed and variable lump costs of IT/IS. The chapter recalls several research cases to demonstrate relationships between IVO aspects and infoeconomics. The infoprocess perspective is characterized as a reliable guide for study and management of infoeconomics. The balanced scorecard methodology suits such an analysis. The point is made on Cloud computing, framing it as a new rental methods of IS services with certain benefits and still partly opaque costs.

Research Issues of the IT Productivity Paradox

2011 ◽  
pp. 20-62
Author(s):  
Chuck C.H. Law ◽  
Eric W.T. Ngai
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Operations Management ◽  
Research Model ◽  
Productivity Paradox ◽  
Business Executives ◽  
Competitive Capabilities ◽  
It Productivity Paradox ◽  
Financial Performance Measures ◽  
It Productivity

Although corporations in the western world, especially those in the United States, have spent generously on information technology (IT) and information systems (IS) in recent decades, many empirical studies have found limited evidence for the payoffs of surging IT expenditures. In some cases, measures of IT spending were found to be either uncorrelated, or negatively associated, with the productivity or financial performance of the sample firms. To the dismay of the researchers and business executives, the phenomenon of the IT productivity paradox lingers on to this day. A review of the literature on this subject has pointed out several possible reasons underlying such inconsistencies, which include data and methodological problems and limitations of research models. Moreover, many of these studies have been criticized as weak in theoretical underpinning when they simply fed data into statistical models for the independent (IT spending), and dependent (productivity or financial performance) measures in order to empirically ascertain the relationships that might exist. In this chapter, a research model is proposed. With expectation to mitigate the shortcomings of some of the prior studies, this model incorporates improvements in business process as an independent construct in parallel to the capabilities of IT and enterprise systems. Competitive capabilities are included as an intermediate construct to help conceptualize the linkage between the independent constructs and the dependent construct of organizational performance. Theories and empirical evidence are drawn from associated management disciplines such as operations management and from a resources-based view of the firm to illustrate and explain that investment in IT and business processes will eventually contribute to organizational performance through the creation and enhancement of competitive capabilities. Finally, the theoretical and managerial implications of this research model are highlighted.

Unraveling the IT Productivity Paradox — Lessons for Health Care

2012 ◽  
Vol 366 (24) ◽  
pp. 2243-2245 ◽  
Author(s):  
Spencer S. Jones ◽  
Paul S. Heaton ◽  
Robert S. Rudin ◽  
Eric C. Schneider
Keyword(s):  
Health Care ◽  
Productivity Paradox ◽  
It Productivity Paradox ◽  
It Productivity

Beyond the IT productivity paradox

1996 ◽  
Vol 14 (3) ◽  
pp. 279-290 ◽  
Author(s):  
Leslie Willcocks ◽  
Stephanie Lester
Keyword(s):  
Productivity Paradox ◽  
It Productivity Paradox ◽  
It Productivity

scholarly journals Information technology (IT) productivity paradox in the 21st century

2015 ◽  
Vol 64 (4) ◽  
pp. 457-478 ◽  
Author(s):  
Mahmood Hajli ◽  
Julian M. Sims ◽  
Valisher Ibragimov
Keyword(s):  
Information Technology ◽  
Factor Productivity ◽  
It Investment ◽  
Firm Level ◽  
High Positive Correlation ◽  
Content Type ◽  
Positive Effects ◽  
Productivity Paradox ◽  
It Productivity Paradox ◽  
It Productivity

Purpose – Since the 1970s productivity growth in most economies slowed, while information and communication technology expenditures increased: the “information technology (IT) productivity paradox.” Some researchers reported an end to the paradox, but this is most likely due to IT industry growth approaching the Year 2000 phenomenon. The purpose of this paper is to update IT productivity paradox research. Design/methodology/approach – For comparability this research replicates methods employed by previous studies but employs a two-level approach: first macroeconomic indicators; second labor and multi-factor productivity. Findings – Findings suggest IT investment has high positive correlation with gross domestic product growth, but not labor or multi-factor productivity. This ambiguity suggests the paradox is still poorly understood. Research limitations/implications – The findings are not conclusive; the authors cannot confirm or reject the existence of the productivity paradox. The global recession and banking crisis makes it prudent to wait until recovery before analyzing data from that period. Practical implications – Lack of convincing evidence supporting positive effects from IT investment suggests some firms benefit from IT investment, but not others, and that IT investment has questionable returns. Social implications – Firm level studies might find IT investment benefits some firms, but lack of convincing macroeconomic level evidence of positive effects of IT investment suggests the paradox still exists. Originality/value – This research updates the IT productivity paradox demonstrating the phenomenon is still poorly understood and thus worthy of further study, questioning the benefits of IT investment for industry and national economies.

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