Information Systems and Healthcare XXIX: Information Technology Investments and Returns – Uniqueness in the Healthcare Industry

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Eric W. Ford, Professor (Creator)
The University of North Carolina at Greensboro (UNCG )
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Abstract: The way in which information technology (IT) impacts firm productivity is an enduring question in organizational research and practice. Rather than adopting the common explanation that IT spending improves organizational performance, we hypothesize that IT spending determines the amount of IT assets, such as IT hardware, IT personnel, IT systems, and IT outsourcing, that can be acquired. These IT assets, in turn, affect productivity. The context of our study is the healthcare industry. Because of the unique set of managerial values, incentives, and constraints in this industry, we also hypothesize that IT personnel play a key role in determining hospital productivity. Analysis of panel data on acute-care centers provides support for our hypotheses. This paper contributes to literature by (1) refining earlier research that explains that IT spending improves organizational productivity; (2) examining the interrelationships between various types of IT assets; and (3) providing initial indications that outsourcing of the IT function may not have effects in healthcare that it does in other industries.

Additional Information

The Communications of the Association for Information Systems Volume 23 2008 Article 21
Language: English
Date: 2008
Healthcare industry, Productivity, IT management, Empirical, Eeconomic theory, Mmanagement theory, Archival data

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