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Executives’ Perceptions of the Business Value of Information Technology: A Process-Oriented Approach
Open accessAbstract
:Despite significant progress in evaluating the productivity payoffs from information technology (IT), the inability of traditional firm-level economic analysis to account fully for the intangible impacts of IT has led to calls for a more inclusive and comprehensive approach to measuring IT business value. In response to this call, we develop a process-oriented model to assess the impacts of IT on critical business activities within the value chain. Our model incorporates corporate goals for IT and management practices as key determinants of realized IT payoffs. Using survey data from 304 business executives worldwide, we found that corporate goals for IT can be classified into one of four types: unfocused, operations focus, market focus, and dual focus. Our analysis confirms that these goals are useful indicators of payoffs from IT in that executives in firms with more focused goals for IT perceive greater payoffs from IT across the value chain. In addition, we found that management practices such as strategic alignment and IT investment evaluation contribute to higher perceived levels of IT business value.
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Cited by
RAVICHANDRAN, T., LERTWONGSATIEN, C., & LERTWONGSATIEN, C. (2005) · Journal of Management Information Systems · doi:10.1080/07421222.2005.11045820 · Cited by 1,238
Creating Strategic Business Value from Big Data Analytics: A Research Framework
Grover, V., Chiang, R. H. L., Liang, T.-P., & Zhang, D. (2018) · Journal of Management Information Systems · doi:10.1080/07421222.2018.1451951 · Cited by 961
ZHU, K., KRAEMER, K. L., & DEDRICK, J. (2004) · Journal of Management Information Systems · doi:10.1080/07421222.2004.11045797 · Cited by 775
Self-citationSchryen, G. (2013) · European Journal of Information Systems · doi:10.1057/ejis.2012.45 · Cited by 420
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Looking Toward the Future of IT–Business Strategic Alignment Through the Past: A Meta-Analysis1
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A multi-project model of key factors affecting organizational benefits from enterprise systems
(2010) · MIS Quarterly · doi:10.5555/2017458.2017464 · Cited by 259
A Multi-Project Model of Key Factors Affecting Organizational Benefits from Enterprise Systems1
Seddon, P. B., Calvert, C., & Yang, S. (2010) · MIS Quarterly · doi:10.2307/20721429 · Cited by 211
Information Technology Impacts on Firm Performance: An Extension of Kohli and 1
Sabherwal, R., & Jeyaraj, A. (2015) · MIS Quarterly · doi:10.25300/misq/2015/39.4.4 · Cited by 200
Chatfield, A. T., & Reddick, C. G. (2018) · Government Information Quarterly · doi:10.1016/j.giq.2017.11.002 · Cited by 141
E-business value creation in Small and Medium Enterprises: a US study using the TOE framework
Wen, K. W., & Chen, Y. (2010) · International Journal of Electronic Business · doi:10.1504/ijeb.2010.030717 · Cited by 88
Jeffers, P. I. (2010) · International Journal of Operations & Production Management · doi:10.1108/01443571011024629 · Cited by 85
Rahman, M. S., Hossain, M. A., & Abdel Fattah, F. A. M. (2022) · Journal of Enterprise Information Management · doi:10.1108/jeim-05-2020-0185 · Cited by 74
Metadata
- Authors
- Tallon, P. P., Kraemer, K. L., & Gurbaxani, V.
- Venue
- Journal of Management Information Systems
- Publisher
- Informa UK Limited
- Published
- 2000-03
- Volume
- 16
- Issue
- 4
- Pages
- 145-173
- ISSN
- 0742-1222 (ISSN-L)
- 1557-928X
- OpenAlex
- W1915854659
- Cited by
- 1,028
- References
- 3
- FWCI
- 32.01
- Type
- journal article
- Language
- en
- Open access
- green
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