Resource Complementarity and IT Economies of Scale: Mechanisms and Empirical Evidence

Ulco Woudstra, Egon Berghout, Chee-Wee Tan, Patrick van Eekeren, Guido Dedene

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Abstract

In 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.
Original languageEnglish
JournalInformation Systems Management
Volume34
Issue number2
Pages (from-to)185-199
Number of pages15
ISSN1058-0530
DOIs
Publication statusPublished - 2017

Keywords

  • Business productivity
  • Economies of scale
  • IT productivity
  • IT value
  • Resource complementarity
  • Shared IT services

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