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dc.contributor.authorBaker, Jeff
dc.contributor.authorSong, Jaeki
dc.contributor.authorJones, Donald R.
dc.date.accessioned2018-06-10T09:15:40Z
dc.date.available2018-06-10T09:15:40Z
dc.date.issued2017-06
dc.identifier.citationBaker, J., Song, J., and Jones, D. “Closing the Loop: An Empirical Investigation of Causality in IT Business Value.” Journal of Strategic Information Systems. Volume 26, Issue 2 (2017) pp. 142-160.en_US
dc.identifier.issn0963-8687
dc.identifier.urihttp://hdl.handle.net/11073/9362
dc.description.abstractResearchers have established that information technology (IT) can improve firms' productivity. Whether improved productivity leads to additional investment in IT, however, remains largely uninvestigated. In this paper, we consider whether the relationship between productivity and subsequent IT investment might be positive, negative, or ad hoc, and hypothesize that this relationship is positive. We analyze seven years of panel data from 1,223 healthcare firms and present empirical evidence supporting our hypothesis. When our finding is combined with extant research, it becomes reasonable to propose that unidirectional causality does not fully describe the process of IT business value creation. Instead, we argue that existing static models of IT business value with unidirectional causality can be recast as dynamic models that explicitly incorporate multiple time periods and a positive feedback relationship to more accurately capture the complexity of this process. The creation of IT business value can thus be understood as a positive feedback model where productivity in a given time period leads to IT investment in a future time period, where IT investment builds the stock of IT inputs, and where those IT inputs then impact productivity, beginning the cycle anew.en_US
dc.description.sponsorshipSchool of Business Administrationen_US
dc.description.sponsorshipDepartment of Marketing and Information Systemsen_US
dc.language.isoen_USen_US
dc.publisherElsevieren_US
dc.relation.ispartofseriesAmerican University of Sharjah Faculty Worken_US
dc.relation.urihttp://dx.doi.org/10.1016/j.jsis.2016.12.001en_US
dc.subjectBusiness value of ITen_US
dc.subjectProductivityen_US
dc.subjectCausalityen_US
dc.subjectLongitudinalen_US
dc.subjectHealthcareen_US
dc.subjectPanel dataen_US
dc.titleClosing the Loop: An Empirical Investigation of Causality in IT Business Valueen_US
dc.title.alternativeClosing the loop: Empirical evidence for a positive feedback model of IT business value creationen_US
dc.typeArticleen_US
dc.typePreprinten_US
dc.typePeer-Revieweden_US
dc.identifier.doi10.1016/j.jsis.2016.12.001


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