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Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Information Technology Payoff and Time Lags

Information Technology Payoff and Time Lags
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Author(s): Cheon-Pyo Lee (Mississippi State University, USA), David A. Vance (Mississippi State University, USA) and Xin Luo (Mississippi State University, USA)
Copyright: 2005
Pages: 4
Source title: Managing Modern Organizations Through Information Technology
Source Editor(s): Mehdi Khosrow-Pour (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59140-822-2.ch024

Abstract

A great deal of controversy exists about IT impacts on firm performance. While some researchers have reported positive impacts, other researchers have found negative or no impacts. Several reasons have been offered for the contradictory results including mismeasurement, poor quality of data, and possible time lags between IT investments and firm performance. As more research has found the existence of time lags between cost and benefits, failure to consider time lags in the previous research has r received enormous attention and emerged as a main reason for the contradictory results. However, despite the important role in business value research, little attention has been given to what causes time lags and why different time lags exist among different firms and types of IT. Therefore, this study provides a conceptual framework of time lags between IT investment and firm performance.

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