On the State-of-The-Art : Methods for Evaluating the Performance Effects of Investments in Information Technology

IT creates impacts at several levels in the firm and often indirectly contributes to firm profitability. The problem ISresearchers face is identifying robust methods that give reliable results. This paper reports on state-of-the-artmethods in IT value research, reviews eleven major empirical studies and suggests three fundamental classes ofconsiderations for conducting successful IT value research. To illustrate methodological advance, new results arepresented from two recently completed IT value studies in financial services and manufacturing. The paper concludesby suggesting untapped theory bases that have the most to offer IT value research