Does an Information Technology Investment Contribute to Company Performance: a Further Examination of the Productivity Paradox

This article continues the discussion examining IT’s contribution on firm performance. Byrnjolfsson (1993) identified what is known as the “productivity paradox” and posited a number of reasons for it. Carr (2003) added fuel by suggesting IT is ubiquitous and provides no significant firm advantage. This study does identify that industry type and size matters. Utilizing the position of CIO, or similar, as a proxy for IT emphasis, the study finds that non-IT intensive organizations, with annual sales less than $101million do achieve performance advantages over firms without an IT emphasis. The implication being that the debate is far from over