An empirical study of IT as a factor of production: The case of Net-enabled IT assets
Saggi Nevo (),
Michael Wade () and
Wade D. Cook ()
Additional contact information
Saggi Nevo: University at Albany-SUNY
Michael Wade: York University
Wade D. Cook: York University
Information Systems Frontiers, 2010, vol. 12, issue 3, No 9, 323-335
Abstract:
Abstract A great deal of research in the information systems field has focused on the link between IT and firm-level outputs, like productivity and performance. This paper critically examines the economic assumptions and methodological approaches that underlie much of this work. Three important issues and gaps are identified. First, the functional form of the relationship between IT and firm-level outputs has been inconsistently specified, or overlooked. Second, multiple input and output variables are often arbitrarily combined. Third, the characteristics of IT as a factor of production have not been tested in the era of Net-enabled IT assets. This paper sheds light on these issues by analyzing an appropriate dataset in a two-stage process. In the first stage, data envelopment analysis (DEA) is employed in order to derive a meaningful measure for IT productivity from a compilation of input and output variables. This measure is treated as a dependent variable in a multivariate regression analysis during the second stage. The paper confirms the diminishing marginal productivity and input substitutability of IT for the sub-category of Net-enabled IT assets.
Keywords: Economics of IS; IT productivity; Diminishing marginal productivity; Input substitutability; Data envelopment analysis; Net-enabled IT assets (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://link.springer.com/10.1007/s10796-008-9141-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:spr:infosf:v:12:y:2010:i:3:d:10.1007_s10796-008-9141-0
Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10796
DOI: 10.1007/s10796-008-9141-0
Access Statistics for this article
Information Systems Frontiers is currently edited by Ram Ramesh and Raghav Rao
More articles in Information Systems Frontiers from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().