Relating information technology investment and organizational productivity: an empirical study

Today, information technology (IT) is of utmost importance to organization’s competitiveness and viability. But various empirical studies give different results about IT and productivity in organization. This project focuses on relation between IS investment and organizational productivity, and impact of other contextual factors on IS productivity. In this study, various dimensions and their indicator variables are identified from literature and hypothetical research framework for IS productivity is developed. This model is empirically validated using structural equation moelling for path analysis. The results indicate positive relation of IS investment with productivity and organizational impact, whilte complementary investment, state of IS and firm characteristics also found to have significant impact on IS productivity.