A characteristic of the information age is the dramatic increase in expenditures by
organizations on information technology (IT). As a result of these investments, managers
generally anticipate productivity gains, which are commensurate with the costs of IT.
However, several empirical studies in the 1980s and early 1990s found no statistical
association between IT spending and financial performance (the productivity paradox, PP).
One possible source of this paradox was proposed by Brynjolfsson [Commun. ACM (1993)] …