Information technology infrastructure, organizational process redesign, and business value: An empirical analysis

Ramirez, Ronald, Melville, Nigel and Lawler, Edward
Decision Support Systems; Nov. 2010, Vol. 49 Issue 4, pp. 417-429

We extend current research examining synergies between information technology, process redesign, and firm performance in three ways: analyze a firm”s entire IT and BPR portfolio, examine production and market value performance implications, and conduct analysis using a unique dataset of 228 firms between 1996 and 1999. We find a contingent association between IT, process redesign, and performance. The interaction of IT and BPR portfolios is positively associated with firm productivity and market value. However, we find mixed evidence of a difference in these impacts across different types of BPR. Insights for business investment in IT and process redesign are discussed.