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Reexamining the Impact of Information Technology Investments on Productivity Using Regression Tree- and MARS-Based Analyses

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Advances in Research Methods for Information Systems Research

Part of the book series: Integrated Series in Information Systems ((ISIS,volume 34))

Abstract

Several studies have investigated the impact of investments in IT on productivity. In this chapter, we revisit this issue and reexamine the impact of investments in IT on hospital productivity using two data mining techniques, which allowed us to explore interactions between the input variables as well as conditional impacts. The results of our study indicated that the relationship between IT investment and productivity is very complex. We found that the impact of IT investment is not uniform and the rate of IT impact varies contingent on the amounts invested in the IT Stock, Non-IT Labor, Non-IT Capital, and possibly time.

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Acknowledgments

Material in the chapter previously has appeared in “Reexamining the Impact of Information Technology Investment on Productivity Using Regression Tree and Multivariate Adaptive Regression Splines,” in the Information Technology & Management (9:4, 285–299 (2008)).

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Correspondence to Myung Ko .

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Appendix: Derivatives of IT Impact Formulas

Appendix: Derivatives of IT Impact Formulas

In this appendix, we display the results (Table 13) of the differentiating with respect to loge T, each “IT Impact Formula” in Table 8.

Table 13 Derivatives of IT impact formulas

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Ko, M., Osei-Bryson, KM. (2014). Reexamining the Impact of Information Technology Investments on Productivity Using Regression Tree- and MARS-Based Analyses. In: Osei-Bryson, KM., Ngwenyama, O. (eds) Advances in Research Methods for Information Systems Research. Integrated Series in Information Systems, vol 34. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-9463-8_9

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