Applying social network theory to the effects of information technology implementation

While some studies have found a significant link between information technology (IT) and firm performance, others have observed negative or zero returns on IT investments. One explanation for the mixed findings is that the causal link from IT to firm performance may be mediated. However, previous information system (IS) research has paid relatively little attention to such mediators. In this chapter, we develop a conceptual framework in which social network plays a mediating role in the relationship between IT usage and firm performance. Specifically, IT usage helps organizations strengthen inter- and intra-organizational networks, which, in turn, enhance firm performance. © 2009, IGI Global