2004•China Industrial EconomyRequires access

Information Technology Productivity Paradox at the Firm Level

Zhou Chui-ri

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Abstract

The information technology (IT) productivity paradox describes the mismatch between actual and expected gains from information technology investment. This article divides the period of the research on IT productivity paradox at the firm level as three parts based on the new research results: productivity paradox was confirmed and explained before the mid-nineties of 20th century; productivity paradox has been refuted since the mid-nineties of 20th century; the new productivity paradox comes forth after 2000. The article analyses the cause of the new productivity paradox and discusses the problems about the new productivity paradox. Finally, the article presents some reference to Chinese firm information technology investment.

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What this paper is about

The information technology (IT) productivity paradox describes the mismatch between actual and expected gains from information technology investment. This article divides the period of the research on IT productivity paradox at the firm level as three parts based on the new research results: productivity paradox was confirmed and explained before the mid-nineties of 20th century; productivity paradox has been refuted since the mid-nineties of 20th century; the new productivity paradox comes forth after 2000. The article analyses the cause of the new productivity paradox and discusses the problems about the new productivity paradox. Finally, the article presents some reference to Chinese firm information technology investment.

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Available abstract

The information technology (IT) productivity paradox describes the mismatch between actual and expected gains from information technology investment. This article divides the period of the research on IT productivity paradox at the firm level as three parts based on the new research results: productivity paradox was confirmed and explained before the mid-nineties of 20th century; productivity paradox has been refuted since the mid-nineties of 20th century; the new productivity paradox comes forth after 2000. The article analyses the cause of the new productivity paradox and discusses the problems about the new productivity paradox. Finally, the article presents some reference to Chinese firm information technology investment.

Key concepts: Productivity, Productivity paradox, Investment (military), Economics, Information technology, Industrial organization, Macroeconomics, Computer science

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