Performance Impacts of Information Technology: Is Actual Usage the Missing Link?
Sarv Devaraj () and
Rajiv Kohli ()
Additional contact information
Sarv Devaraj: Department of Management, Mendoza College of Business, University of Notre Dame, Notre Dame, Indiana 46556
Rajiv Kohli: Department of Management, Mendoza College of Business, University of Notre Dame, Notre Dame, Indiana 46556
Management Science, 2003, vol. 49, issue 3, 273-289
The relationship between investment in information technology (IT) and its effect on organizational performance continues to interest academics and practitioners. In many cases, due to the nature of the research design employed, this stream of research has been unable to identify the impact of individual technologies on organizational performance. This study posits that the driver of IT impact is not the investment in the technology, but the actual usage of the technology. This proposition is tested in a longitudinal setting of a healthcare system comprising eight hospitals. Monthly data for a three--year period on various financial and nonfinancial measures of hospital performance and technology usage were analyzed. The data analysis provides evidence for the technology usage--performance link after controlling for various external factors. Technology usage was positively and significantly associated with measures of hospital revenue and quality, and this effect occurred after time lags. The analysis was triangulated using three measures of technology usage. The general support for the principal proposition of this paper that "actual usage" may be a key variable in explaining the impact of technology on performance suggests that omission of this variable may be a missing link in IT payoff analyses.
Keywords: Information Technology; IT Payoff; IT Usage; Healthcare; Longitudinal Study; Profitability; Quality (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (117) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:49:y:2003:i:3:p:273-289
Access Statistics for this article
More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Matthew Walls ().