The Impact of Information Technology on the Organization of Teams

Bezalel Gavish () and Joakim Kalvenes
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Bezalel Gavish: Owen Graduate School of Management, Vanderbilt University
Joakim Kalvenes: School of Management, The University of Texas at Dallas

Brazilian Electronic Journal of Economics, 1997, vol. 1, issue 0

Abstract: Organizations and teams are the focus of this paper where the impact of information technology on team productivity is studied. First, a model of team production and coordination of activities is developed. Then, the effect of computing and telecommunications on team output is studied. It is shown that information technology places an absolute upper limit on team production. Recognizing this limit, it is shown that team splitting with an accompanying subgroup specialization can increase organization output. However, also in this case, information technology places an absolute upper limit on the organization's production. These results have important implications for management decisions on computing and telecommunication system investments. Also, the model may explain some of the organizational changes that have been observed in different markets world wide.

Keywords: Teams; Organizations; Coordination (search for similar items in EconPapers)
Date: 1997
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