Information technology productivity: in search of a definite observation

A simple theory is proposed to explain the perceived phenomenon that huge investments in information technology over the past four decades have yielded a very small gain in productivity growth.

Abstract

The perceived phenomenon that huge investments in information technology (IT) over the past four decades have yielded a very small gain in productivity has been dubbed the 'IT paradox'. Researchers have tried various ways to prove or disprove the paradox. This article highlights the challenges that researchers have faced and proposes a simple theory to explain what seems to be a vanishing contribution of IT to productivity growth.