Middle management downsizing: an empirical investigation of the impact of information technology
Article Abstract:
Earlier studies conducted regarding the impact of information technology (IT) on middle management are characterized by conflicting findings. Some studies proposed that IT resulted to massive downsizing. However, other findings indicate that IT increased the number of middle managers. To settle the said conflict, the issue is further studied using two variables: the degree of centralization of computing decision authority and the degree of centralization of organizational decision authority. A survey of 155 city governments were used for the study. Results show that organizations with decentralized decision authorities exhibited a decline in the number of middle managers. On the other hand, the number of middle managers in organizations with centralized decision authorities increased.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1997
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Information technology effects on firm performance as measured by Tobin's q
Article Abstract:
Tobin's q was used to analyze the relationship between firm q values and information technology (IT) investments after monitoring several firm-specific variables and industry characteristics. Tobin's q is a financial market-based measure of organizational performance that is based on the assumption that a firm's long-run equilibrium market value must be equal to the replacement value of its assets, providing a q value close to unity. Data were taken from the annual surveys published in Informationweek magazine's IW-500 and Computerworld. Results suggest that the IT variable provides unique information in explaining variance in Tobin's q. Findings also show that expenditures in IT had a statistically significant positive association with Tobin's q.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1999
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The substitution of information technology for other factors of production: a firm level analysis
Article Abstract:
The price and technological advantages offered by information technology (IT) has resulted to the replacement of non-IT inputs with IT factors of production. This scenario can be evaluated using data from the IDG/Computerworld survey on information system expenditures incurred by American companies from 1988 to 1992. Statistical analysis confirm the previous findings of Brynjolfsson and Hitt (1995) regarding the productivity paradox of IT. The significance of IT capital is expected to grow over time since it can be used as a replacement for labor and ordinary capital. Moreover, excess returns on IT capital as regards ordinary capital and labor input are observed.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1997
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