Information technology and performance: Integrating data envelopment analysis and configurational approach

Abstract

While several studies claim that information technology (IT) improves business performance, others claim that the impact of IT on performance remains unclear. Based on data envelopment analysis (DEA), this paper empirically examines the relationship between IT factors, intermediate performance metrics, and business outcomes. It also advances a new conceptual perspective to investigate the relationship between IT investment and performance. We propose a theoretical framework based on network DEA models, considering multiple periods, multiple inputs and outputs to study and understand the influence of IT on performance. Using a sample of 86 firms from Asia, Europe, and the US, we measure information technology performance with network DEA models, advance an explanation of the relationship between IT and performance and compare this relationship by regions and industries. By integrating DEA and a configurational analysis, we also develop a set of configurations of IT performance to understand the differences by regions and industries. Our results show that: IT performance shows little regional difference, but significant industrial diversity. We found four configurations to capture industrial differences in IT performance, and found that the efficiency of IT operations rather than IT investments, was the main reason leading to an increase in business performance.

Keywords:

• Data envelopment analysis
• information technology and performance
• information systems
• configurational approach