Does the Success of Information Systems Really Matters to Firm Performance?

Rich C. Lee

Department of Information Management, National Sun Yat-sen University, Kaohsiung, Chinese Tapei; 2System Technology Group, IBM, Chinese Tapei.

DOI: 10.4236/ib.2012.42012                

Abstract

Many failed listed-enterprises had strong information capabilities and resources; however such advantage did not help these enterprises survive during the economy difficult times. Previous research of DeLone and McLean (D&M) implied the success of information systems will enhance the performance of enterprises. Based on this implication, many enterprises continuously invested resources on information systems as a strategy trying to gain advantage over competitors. This paper argues the Net Benefits in D&M model—resulted from the success of Information system—does not always significantly improve the Enterprise Performance but rather has a limit on it. In fact, such an excess investment cannot improve the Enterprise Performance but exhausts more valuable resources instead. The implication of this paper is to encourage enterprises to revisit their valuable service and reevaluate the Socio-Influences before investing more on in- formation systems.

Keywords

Information System Success; Firm Performance; Service Science

Conflicts of Interest

The authors declare no conflicts of interest.

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