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  • Essay / Essay on Negative Effects of Information Technology

    Negative Effects of Information Technology on Productivity. Hitt and Brynjolfesson (1994) found positive effects of information technology based on measures of production and consumer surplus. But on the other hand, Landaver (1995), from various studies and documents, discovered the problems related to computers. To this point, academic research shows that results are inconsistent across the number of dimensions, including performance measures, methodologies, and data sources. Researchers have found that increased performance and productivity are not entirely dependent on IT investment. Mahmoud and Mann (2005). Productivity is the fundamental measure of technological contribution. Although there have been continued successes, there have also been some failures. The lack of precision in the quantitative measures of production and the value created by information technologies made the work of evaluating the investments of the SIM manager particularly difficult. (Kemmerer and Sosa, 1991; Schneider; 1987). Academics also had problems accessing this new technology, which on the other hand generated negative value. Some researchers have concluded that information technology also has a negative impact on productivity. Dedrick et al (2003) “studies have failed to identify the relationship between investment in information technology and firm profits. The term "productivity paradox" describes the inability of information technology to produce higher productivity. Solow (1987) believes that the technological revolution slows down productivity growth. Stephen Roach (1994) was one of the first to use the term productivity paradox. He described the paradox as a situation in which the U.S. service sector owns about 85 percent of the country's information. Although information technology did not yield appropriate positive results in the early 1980s, new information technologies adopted in the 1990s changed the competitive strategy of manufacturing companies. Theories have already said it, but lack of data cannot prove it. Most researchers studying IT ROI have focused primarily on productivity, although they are aware that they risk underestimating the total return on IT investments. Testing this required unique data that identified what IT actually means in the production process, data on productivity gains, and data on product customization.ReferencesSmith, J. 2008. The influence of information technology on productivity.