Impact of Information Technology on Organizational Performance

Purchase of It is almost always targeted at enhancing productivity, profitability and excellence of procedures but Devaraj and Kohli (2003) were not able to recognize the outcome of technology around the business performance. Kelly (1994) discovered that the reason behind the lack of ability to correctly explain the connection between technology and productivity was because of the aggregated unit of research in the business level which increases the complexity of separating the results associated with a individual technology. He noted that the risk of discovering it usage impacts is dependent about how detailed case study is. Devaraj and Kohli (2003) mentioned that analyzing how much money committed to It might not yield accurate way of measuring IT effectiveness because amounts of usage might be different across industries, firms and procedures. In their own individual contribution towards the fledging debate onto it usage impacts, Goodhue and Thompson (1995) described the fit between task and technology would need to be established before IT utilization can result in individual performance impacts.

To have task- technology fit, we’ve got the technology and targeted application would need to be compatible along with the accessibility to qualified customers who’ll make use of the technology (Goodhue & Thompson, 1995). This proposition suggests it infrastructure and also the organization’s business goal would need to maintain alignment.

The IT usage literature has proven that there’s distinction between voluntary utilization of IT and mandatoriness. Subjective norm was discovered to affect mandatory IT use whereas it had been absent in voluntary use. Also, it had been noted that lead to technology really don’t occur immediately but they are recognized with time (Devaraj and Kohli, 2003 Hartwick and Barki, 1994). Peffers and Dos Santos (1996) carried out market research around the impact from it in banks and observed that mix-sectional studies which are done right after programs are set up might not yield preferred results by not finding benefits even when their is possibility of large benefits. Their study established that impact from it on performance grew to become apparent after certain time lag which advantages of IT built up more to early adopters than late adopters.

Billy Lerner