Abstract

This study explores the evolution and development of research models which were developed in order to improve our understanding of the relationship between investment in information technology (IT) and the subsequent benefit (or loss) to an organization's performance. Due to the elusive nature and contradictory findings in much of the research in this field a newer, more complete model was developed and tested empirically. The proposed model incorporates the Technology to Performance Chain (Goodhue and Thompson, 1995) into the more basic model suggested by Smith and McKeen (1993) Results of data analysis using the Partial Least Squares technique are presented and discussed. Findings suggest that the Technology to Performance Chain does act as an intervening variable in the IT investment/organization performance relationship. Limitations of the present study, as well as suggestions for future research are also discussed.