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Measurement or Management?: Revisiting the Productivity Paradox of Information Technology

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  • Stuart Macdonald
  • Pat Anderson
  • Dieter Kimbel

Abstract

In 1999, the Department of Trade and Industry in London commissioned a literature review of, and commentary on, the productivity paradox in information technology. This paper is derived from that report. The authors find that the discussion of the productivity paradox took place largely in the United States and particularly in Massachusetts. Two quite separate strands were evident: the literature of the economists, seeking ever-better methods of measurement, and that of management authors, seeking ever-better methods of management. This paper gives more attention to the latter than is customary, and concludes that the link between management methods and the requirements of IT may be closer than has hitherto been suspected. A combination of factors rather than a single factor is probably responsible for the disappointing productivity of IT. Within this combination, the problems that IT posed managers and the opportunities it offered management consultants are especially intriguing. 1999 gab das Department of Trade and Industry in London einen umfassenden Literaturüberblick über das Produktivitätsparadox in der Informationstechnologie in Auftrag. Der vorliegende Beitrag beruht auf diesem Projekt. Die Autoren stellten fest, dass die Diskussion des Produktivitätsparadoxons größtenteils in den Vereinigen Staaten und teilweise in Massachusetts stattfand. Zwei sehr unterschiedliche Betrachtungsansätze bestimmen die Produktivitätsparadox-Diskussion: Die volkswirtschaftliche Literatur forscht nach immer besseren Messmethoden, und die betriebswirtschaftliche Literatur beschäftigt sich mit der Suche nach immer besseren Managementmethoden. Der vorliegende Beitrag konzentriert sich hauptsächlich auf die zweite Betrachtungsweise. Als Schlussfolgerung ergibt sich, dass der Zusammenhang zwischen Managementmethoden und Anforderungen der Informationstechnik weitaus enger ist als bisher angenommen wurde. Für die enttäuschenden Produktivitätswirkungen der Informationstechnik ist nicht ein einzelner Faktor, sondern wahrscheinlich eine Kombination von Faktoren verantwortlich. In dieser Kombination sind die Probleme, die sich Managern in der Nutzung von IT stellen, und die Betätigungsmöglichkeiten für Unternehmensberater besonders interessant.

Suggested Citation

  • Stuart Macdonald & Pat Anderson & Dieter Kimbel, 2000. "Measurement or Management?: Revisiting the Productivity Paradox of Information Technology," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 69(4), pages 601-617.
  • Handle: RePEc:diw:diwvjh:69-40-9
    DOI: 10.3790/vjh.69.4.601
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    References listed on IDEAS

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    2. Alejandra Bellatin & Stephanie Houle, 2021. "Overlooking the online world: Does mismeasurement of the digital economy explain the productivity slowdown?," Staff Analytical Notes 2021-10, Bank of Canada.
    3. Mallen, Cheryl & Chard, Chris, 2011. "A framework for debating the future of environmental sustainability in the sport academy," Sport Management Review, Elsevier, vol. 14(4), pages 424-433.
    4. DeStefano, Timothy & Kneller, Richard & Timmis, Jonathan, 2018. "Broadband infrastructure, ICT use and firm performance: Evidence for UK firms," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 110-139.
    5. Stefan Schweikl & Robert Obermaier, 2020. "Lessons from three decades of IT productivity research: towards a better understanding of IT-induced productivity effects," Management Review Quarterly, Springer, vol. 70(4), pages 461-507, November.
    6. Klein, Daniel & Ludwig, Christopher A. & Nicolay, Katharina, 2020. "Internal digitalization and tax-efficient decision making," ZEW Discussion Papers 20-051, ZEW - Leibniz Centre for European Economic Research.
    7. Nadine Fabritz, 2015. "Investment in ICT: Determinants and Economic Implications," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 60.

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