Total factor productivity growth in information technology services industries: A multi-theoretical perspective

2014 | Decision Support Systems | Citations: 0

Authors: Chou, Yen-Chun; Shao, Benjamin B. M.

Abstract: Information technology (IT) services refer to the delivery and support of IT ope ... Expand

Abstract: Information technology (IT) services refer to the delivery and support of IT operations and activities in order to satisfy business requirements and to manage IT infrastructure for organizations. Considered part of knowledge-intensive business services, IT services provide an output used by other sectors and play an increasingly important role in the services-based economy. Based on the theories of production, innovation and competition, we study total factor productivity growth of IT services industries in 25 Organization of Economic Cooperation and Development (OECD) countries over the period of 1995 to 2007 using Malmquist productivity index (MPI) as the performance metric and data envelopment analysis (DEA) as the measurement methodology. We then further decompose MPI into three components that provide a full analysis: technical change (for innovation), efficiency change (for catch-up), and scale change (for demand fluctuation). These IT services industries are found to show notable productivity growth when compared with other services industries, the services sector as a whole, and the economy at large. Through a multi-theoretical lens, our breakdown analysis reveals that the IT services industry is an innovator adept at making technological progress that becomes the key driver behind observed productivity growth; efficiency change exerts a relatively small negative impact; and scale change being mainly decided by client demands impairs productivity. Implications for IT services at both country and industry levels are drawn from our findings to provide suggestions for policymaking and strategy formulation. Collapse

Topics: productivity innovation management electronic commerce internet technology database system

Methods: trade-off analysis method data envelopment analysis longitudinal research descriptive statistic

Theories: economic production theory

Information Technology and Organizational Efficiency: A Study in the Capital Goods Sector

2009 | Americas Conference on Information Systems | Citations: 0

Authors: Arpino, Giuseppe

Abstract: Among the possible measures for Information Technology (IT) success is its impac ... Expand

Abstract: Among the possible measures for Information Technology (IT) success is its impact on companies´ performance. Many researches have been conducted to show the influence of IT on firms´ results, but mainly through studies in large-sized firms. The objective of this work is to analyze the relationships between IT investments and organizational efficiency, focusing on micro, small and medium sized enterprises. For this, critical success factors for industrial firms’ performance were identified and a two-stage data envelopment analysis (DEA) model was developed and tested in a sample of firms in the capital goods sector. DEA is especially interesting because it allows comparing and differentiating those firms in the sample which are more efficient in deriving results from IT. Among the results found were the higher capacity of small firms to translate IT investments into operational efficiency and the higher capacity of larger firms to convert critical success factors into profitability. Collapse

Topics: critical success factor information system use productivity IT investment electronic mail

Methods: survey data envelopment analysis trade-off analysis method survey design literature study