The relationship between computerization and performance: A strategy for maximizing the economic benefits of computerization

Results indicate that computerization is related to overall performance, and users versus non-users of computers, three levels of usage, and class of computer usage indicate that non- users tend to be small firms with about average overall performance.

Abstract

The relationship between computerization and several measures of overall firm performance is examined. Sample firms consisted of 138 wholesalers in a single industry with annual sales between one million and over ten million dollars. Three performance comparisons are presented: users versus non-users of computers, three levels of usage, and class of computer usage. Results indicate that computerization is related to overall performance. Non-users tend to be small firms with about average overall performance. On the other hand, firms owning computers and making extensive use of them in a variety of ways tend to be either very high or low performers. Possible explanations for these bi-modal results are presented.