|
|||||
|
|
Resource Complementarity and IT Economies of Scale: Mechanisms and Empirical Evidence |
|
| Authors: | Ulco Woudstra Chee-Wee Tan Patrick van Eekeren Guido Dedene |
| Affiliation: | 1. Department of Information Technology, Amphia Hospital, Breda, The Netherlands;2. Department of Innovation Management &3. Strategy, University of Groningen, Groningen, The Netherlands;4. Department of IT Management, Copenhagen Business School, Copenhagen, Denmark;5. M&6. I/Partners, Consultants for Management &7. Information, Zeist, the Netherlands;8. Department of Business and Economics, University of Leuven, Leuven, Belgium |
| Abstract: | ABSTRACTIn this study, we explore economies of scale for IT infrastructure and application services. An in-depth appreciation of economies of scale is imperative for an adequate understanding of the impact of IT investments. Our findings indicate that even low IT spending organizations can make a difference by devoting at least 60% of their total IT budget on IT infrastructure in order to foster economies of scale and extract strategic benefits. |
| Keywords: | Business productivity economies of scale IT productivity IT value resource complementarity shared IT services |