Where Have All the Flowers Gone? A Modular Systems Perspective of IT Infrastructure Design and Productivity

Assessing value of IT infrastructure investments has been both difficult and ambiguous. This research develops and tests a conceptual framework to understand the productivity process. A lagged and recursive framework is used to trace the relationship between IT infrastructure investments, infrastructure design, and organizational productivity along with contingencies of IT management and the environment. A major contribution of this study is the use of the systems perspective to disaggregate the concepts of IT infrastructure and productivity into collectively exhaustive types. Findings reveal that IT investments do not significant affect productivity but do so when used to develop an IT infrastructure design. IT management is seen to strongly influence IT infrastructure design. Similarly, organizational environment appears to significantly influence the type of productivity focus for a firm. The study adds to the existing body of knowledge through a holistic investigation of the multi-level relationship between IT infrastructure configurations, contingencies, and productivity.