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Organizational Performance and Information Technology Investment Intensity in the Insurance Industry

Author

Listed:
  • Sidney E. Harris

    (Peter F. Drucker Graduate Management Center, The Claremont Graduate School, Claremont, California 91711)

  • Joseph L. Katz

    (Department of Decision Sciences, College of Business Administration, Georgia State University, Atlanta, Georgia 30303)

Abstract

In this paper, we consider whether there existed a significant and systematic relationship between firm performance and information technology investment intensity in the home office operation of 40 systems technology leaders in the life insurance industry, 1983–1986. It is hypothesized that in top performance insurance firms (1) information technology costs as a proportion of total operating costs were higher, and (2) information technology costs as a proportion of premium income were lower, than in weak performance firms. Evidence is presented that indicates that firm performance was linked to the level of information technology investment intensity.

Suggested Citation

  • Sidney E. Harris & Joseph L. Katz, 1991. "Organizational Performance and Information Technology Investment Intensity in the Insurance Industry," Organization Science, INFORMS, vol. 2(3), pages 263-295, August.
  • Handle: RePEc:inm:ororsc:v:2:y:1991:i:3:p:263-295
    DOI: 10.1287/orsc.2.3.263
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