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Using regression splines to assess the impact of information technology investments on productivity in the health care industry
Author(s) -
Ko Myung,
OseiBryson KwekuMuata
Publication year - 2004
Publication title -
information systems journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.635
H-Index - 89
eISSN - 1365-2575
pISSN - 1350-1917
DOI - 10.1111/j.1365-2575.2004.00160.x
Subject(s) - productivity , multivariate adaptive regression splines , investment (military) , set (abstract data type) , point (geometry) , business , regression analysis , econometrics , industrial organization , economics , bayesian multivariate linear regression , computer science , statistics , economic growth , mathematics , geometry , politics , political science , law , programming language
. This paper explores the impact of information technology (IT) investments on productivity using a new technique, multivariate adaptive regression splines (MARS). We believe that it provides additional insights on the nature of the impact of IT investments on productivity. The results from our study are compared with findings from a previous study that has also used the same data set. While the results of a previous study indicate that IT investments have a positive but uniform impact on productivity, our study suggests that the impact of IT on productivity is not uniform but is contingent on other complementary factors. Our findings describe that the complementary relationship exists between IT and non‐IT related investments. Thus, improved organizational productivity cannot be expected from investment in IT alone but only together with non‐IT investments. Our findings also point out that further investment may not necessarily bring on higher organizational productivity.