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| Author: | Thatcher, M. E. Oliver, J. R. |
| Title: | The Impact of Technology Investments on a Firm's Production Efficiency, Product Quality, and Productivity |
| Journal: | Journal of Management Information Systems
2001 : FALL, VOL. 18:2, p. 17-46 |
| Index terms: | TECHNOLOGY INVESTMENT PRODUCTION PRODUCT QUALITY PRODUCTIVITY |
| Language: | eng |
| Abstract: | For over a decade, empirical studies in the information technology (IT) value literature have examined the impact of technology investments on various measures of performance. However, the results of these studies, especially those examining the contribution of IT to productivity, have been mixed. The authors demonstrate that investments in technologies that reduce the firm's fixed overhead costs do not affect the firm's product quality and pricing decisions but do increase profits and improve productivity. In addition, the authors demonstrate that investments in technologies that reduce the variable costs of designing, developing, and manufacturing a product encourage the firm to improve product quality and to charge a higher price. |
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