A Process-Oriented Perspective on Evaluation of the Impact of Information Technology on Distribution Company Performance in view of Organisazational Infrastructures

University essay from Luleå/Department of Business, Administration, Technology and Social Sciences

Abstract: The link between information technology investments and company value as a part of examination has maintained attention among IS examiners during previous years. Based on literature review of available work at corporate level productivity, researchers have developed three diverse approaches in assessing the correlation between IT implementation and productivity
measures. Generally, the first two methods concentrate on the effects of IT investment on straight, intermediary, financial and non-financial measures of
efficiency. None of these two methods could definitely prove either a straight relationship or lack of such a relation. The third method, "complementary"
method, studies the IT implementation however highlights the function of
complementary investments that improve and complete the IT
implementation. Recently, some studies focus on process-oriented method, which give emphasis to evaluation of impact of information technologies
from process to process capabilities, and from capabilities to performance.

Nevertheless, there has been no well-founded experimental research on process-oriented assessment of impact of IT simultaneously considering
complementary investment. The current research aims to evaluate the level of impact of IT on organization process and the effect of these processes on
capabilities. Finally, the impact of capability improvement on performance will be assessed. Outcomes demonstrate significant relation among process
influence, capability improvement and performance advancement.
Conversely, this thesis evaluates the impact of interaction between IT and organizational infrastructure. Data from 109 distribution companies were
gathered in a field survey. The empirical work indicated the constructed measures’ reliability and validity.

The results prove the modest consequence of organizational infrastructure as one of information technology
complementary. In addition, by studying process oriented method, the result of analysis shows the noteworthy influence of IT on operational and
managerial processes of organizations whereas these processes' impression
advance capabilities of organizations appreciably.

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