Investments in Information Technology, Organizational Slack, and Economic Productivity

From a resource-based view (RBV), information technology (IT) investments affect organizational slack resources and therefore influence firm economic productivity. In this study, we develop a framework and test the relationship between economic productivity and organizational slack through an examination of 9 years financial data of 106 U.S. listed companies. Each variable has been tested for three stages of IT investments. Our results suggest that organizational slack resources increase after IT investments which later are consumed and converted into economic productivity. Full paper available at https://aisel.aisnet.org/confirm2018/31