Measuring Input Productivity Gains from Information Technology

This paper proposes a new method to measure the input productivity gains from information technology incomplex managerial environments. The method employs a production function which maps output andrelating moderating variables in the managerial environment into input resource consumption, with arandom inefficiency component which can be affected by IT deployment. Sample hypotheses and a sketchof the F-tests used to identify reductions in input inefficiency are presented, and then illustrated for a newinformation technology which has recently been deployed in fast food restaurants