Abstract

The last few decades have been witness to a surge in the use of information technology (IT) in the hope of bettering firm performance, productivity, efficiency, and effectiveness. Increasingly, a firm's decision to invest in IT is deemed critical as it may provide the company with strategic advantages and enhanced productivity. Several studies have endeavoured to link IT investments to firm performance. Although huge sums of money have been invested in IT by firms across all industries, there is still little evidence of a concomitant increase in firm productivity; thus the term "productivity paradox". The significance of this research lies in that it will try to determine whether certain of the TSE300 Index industries are more effective in their use of IT than others, whether temporal effects play any significant role, and whether there exist any interaction between time and industry. We examine these industry, time and interaction effects by running multiple regression models estimated using Ordinary Least Squares procedure. (Abstract shortened by UMI.)