RELATIONSHIP ANALYSIS OF INVESTMENTS IN INFORMATION TECHNOLOGY AND ORGANIZATIONAL PERFORMANCE DOI: 10.5585/RAI.2010326

Abstract

The analysis between investments in Information Technology (IT) and organizational performance has been a recurrent theme in American journals and conventions. There is much controversy concerning the genuine value generation from the IT to the enterprises. This study aspires to contribute to this debate by testing two research hypothesis based on the literature review: 1) the groups of organizations having higher levels of IT investments demonstrate better performance indicators; and 2) distinctive indicators for each research variable generate different results. The study’s sample covers 16 organizations, whose information was gathered over a three-year period (2003 - 2005), based on two annual publications by Editora Abril (Revista InfoExame and Guia M&M). As a conceptual research model, the economic production function perspective was adopted, stressing that it was through this vision that the major debates regarding “IT’s productivity paradox” have emerged (KOHLI & DEVARAJ, 2003). The research is classified as descriptive, aiming to establish the relation between variables (BARROS & LEHFELD, 1989; GIL, 1999). The research design is denominated Longitudinal Surveys approximation design (BABBIE, 1998), and both the unity and the level of analysis are organizational. From the tested hypothesis, the first was rejected and the second corroborated.