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

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

doi:10.1080/10580530.2017.1288527

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

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

Department of Digitalization

Research output: Contribution to journal › Journal article › Research › peer-review

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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 language	English
Journal	Information Systems Management
Volume	34
Issue number	2
Pages (from-to)	185-199
Number of pages	15
ISSN	1058-0530
DOIs	https://doi.org/10.1080/10580530.2017.1288527
Publication status	Published - 2017

Keywords

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

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Cite this

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