• Title/Summary/Keyword: productivity paradox

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Industrial Economic Growth and IT Investment: Is Economic Growth an Effect of IT Investment, or a Determinant of Decision-making for IT Investment (산업의 경제 성장과 IT 투자: 경제 성장은 IT 투자의 효과인가, 아니면 IT 투자 결정의 요인인가?)

  • Sangho Lee;Young U. Ryu
    • Information Systems Review
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    • v.19 no.1
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    • pp.185-202
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    • 2017
  • Most studies based on production function theory have concluded that economic growth is a result of information technology (IT) capital use. However, some studies have indicated that economic growth is a determinant of IT investment. To determine if these results also hold at the industry level, we use the Granger causality test to analyze bidirectional causality with industry-level data for 1977~2007 from the United States. The results generally reveal that IT investment causes economic growth in many industries under the concept of Granger causality, that economic growth causes IT investment in some industries, and that IT investment is not associated with economic growth in some industries. In the country-level time-series data made by summing up the IT capital and gross output for each industry, the results do not show any causality between IT investment and economic growth. However, they show bi-directional causality between IT investment and economic growth in the panel data. These results may be a source of IT productivity paradox.

The Determinants of IT Assimilation and Its Effect on Organizational Performance : An Innovation Diffusion Theory Perspective (정보기술동화의 결정요인 및 기업성과에 미치는 영향 : 혁신확산이론의 관점)

  • Kwahk, Kee-Young;Im, So-Yeon
    • Journal of the Korean Operations Research and Management Science Society
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    • v.33 no.1
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    • pp.149-168
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    • 2008
  • Many organizations have introduced information technology (IT) as an innovation to gain competitive advantages as business environments have become increasingly complex and rapidly changing. Despite the large investment of IT, there have been mixed results about whether IT creates business values. Considering that IT assimilation may play an important role in explaining IT productivity paradox, this study examines the formation of IT assimilation and its effect on the organizational performance. To do so, this study suggests a research model based on Innovation Diffusion Theory by incorporating organization system, communication channel, change acceptability, and innovation factors, and then attempts to empirically explore the role of IT assimilation for enhanced organizational performance using data collected at the organizational level. Structural equation analysis using AMOS provides significant support for part of proposed relationships. Specifically, we have found encouraging results on the role of IT assimilation by identifying its mediating effect on the organizational performance. Theoretical and practical implications of the findings are discussed accordingly.

The Effect of Graphical Formats on Computer-Based Idea Generation Performance

  • Jung, Joung-Ho
    • The Journal of Information Systems
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    • v.27 no.1
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    • pp.153-169
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    • 2018
  • Purpose Since human brains catch images faster than texts or numbers, infographics has been widely used in business in the form of "information dashboard" to enhance the efficiency of decision-making. Groupware, however, has neglected the adoption and use of infographics, in particular, in the idea generation process. Given that an overall performance of groupware-based idea generation is no better than that of the (paper-and-pencil-based) Nominal Group Technique, Jung et al. (2010) adopted the notion of infographics in the form of performance feedback to solve the productivity paradox. With the consistent results, which demonstrate beneficial effects of infographics on performance enhancement, an interesting observation that groups with the bar chart treatment performed better than groups with the dot chart treatment was made. The main purpose of this study was to find if there were a performance consistency between the outcomes from the previous study and the outcomes from the current study. Design/methodology/approach In experiment 1, we employed the same system used in the previous study (i.e., Jung et al., 2010). As individuals' contributions accumulated, the mechanism visually displayed individuals' performances two-dimensionally in the form of a bar chart or a dot chart. Then, we compared the performance outcomes from this study to the outcomes from previous study (i.e., Jung et al., 2010). In experiment 2, we modified the performance graph to test the effect of "playfulness" on performance by converting dots to car images. Then, we compared the performance outcome from experiment 2 to the outcomes from experiment 1. Findings Just like our interesting (and unexpected) finding in Jung et al.'s study (2010), the outcome confirmed a consistent superior performance of a bar chart. This implies that a bar chart is a better choice when stimulating performance with a visual aid in the context of groupware-based idea generation. Although a bar chart was criticized in a way that errors of length-area judgments are 40 ~ 250% greater than those of positional judgments along a common scale, such illusion turned out to be facilitating upward performance comparison better. Regarding Experiment 2, the outcome showed that the revised-dot graph is as good as the bar graph in terms of quantity and quality score of ideas. We attribute the performance enhancement of the resized-dot to the interaction between the motivational characteristic and the situational characteristic of playfulness because individuals in the revised-dot graph treatment performed better than individuals in the dot graph treatment. Given the order of performance (Bar >= Revised Dot > Dot) that the revised-dot treatment performed the same as (or lower than) the bar treatment, an additional research is warranted to reach to a consistent outcome.