Information technology (IT) has entered the modern world of business and economics and has become a game-changer, side by side with traditional labor and financial resources. This shift has made it a keen interest in the real-life impact of business success and economic health. For those who make decisions and shape policies, it is already crucial to understand their actual value.
But understanding its true business value is plagued by a lasting puzzle known as the “productivity paradox.” This puzzle shows that while capital is invested in it, companies and states do not always explicitly improve their overall productivity or performance. This confusing situation, a hot topic in the 1980s, was considered to have been resolved in the mid-1990s, and has recently become the focus of attention. The latest findings suggest that this paradox remains, urging good and emerging economies to rethink their IT strategies.
Professor Winston Lin, Professor Yueh Chen and Professor Shih-Sian Jhang present a detailed and multifaceted approach to solving these complex problems in the Asia-Pacific Management Review. The team developed ten different research models using innovative methods, called one-way equations and two-eq adjustment valuation methods. Their approach uses the Box-Tidwell conversion feature, aiming to clearly show the desired results and bridge the gap in understanding how it interacts with key economic indicators such as unemployment and inflation.
Professor Lin clarified in a special interview: “The idea behind the productivity paradox is that the large amount of investments made therein are not always related to a significant increase in overall productivity or company performance. This has been business since the 1980s The roots of chaos and debate among leaders, policy makers and researchers is a problem we think has disappeared by the mid-1990s.”
The findings of this study reveal a subtle and complex relationship between IT investment and economic factors. They found that the benefits of investing in it depend heavily on the extent to which other support resources are utilized and vary widely from one economy to another. The team also identified cooperation and dynamic dynamics between it, unemployment and inflation, showing that these relationships vary according to the unique economic conditions and available resources in each country, challenging a strategy fit All strategies to maximize their economic interests.
Professor Lin further pointed out: “Besides determining the complexity of its business value is a long-term debate about its productivity paradox, in which huge investments do not necessarily translate into a significant improvement in overall productivity or company performance.”
In summary, the research by Professors Lin, Chen and Zhong provides important insights into the complexity game of IT investment, unemployment and inflation of economic performance. It not only highlights the ongoing mystery of the IT productivity paradox, but also paves the way for future research in the field, emphasizing the need for a deeper, more nuanced understanding of these relationships in our rapidly growing global economy.
Journal Reference
Lin, Winston & Chen, Yueh & Jhang, Shih-Sian. (2023). Impact of unemployment and inflation rates on the value of business in information technology and economic performance: Partially adjusted valuation methods. Asia Pacific Management Review. roll. 28 (December 2023), 371-389 doi: https://doi.org/10.1016/j.apmrv.2022.12.005
About the Author
Dr. Winston T. LinProfessor of Operations Management and Strategy, SUNY School of Management, received his Ph.D. From Northwestern University, Evanston, Illinois, USA, his current research interests are in the fields of operations management, information systems, production economics, and business forecasting. He published 104 articles, including 22 alleged proceedings and 82 journal articles. He also published two academic books. He has published 108 papers at national and international conferences. He received many important research grants and three best paper awards in 2001, 2013 and 2015. He was awarded the SUNY Buffalo State University’s Outstanding Scholar/Continuing Achievement Award in 2004, which was the 2018 Albert recipient Nelson Marquis Lifetime Achievement Award The Publications Selection Committee awarded by Marquis to recognize his longevity in his career and outstanding performance in his chosen field; and a lifelong achiever in the field of higher education, by “a person dedicated to recognizing excellence” The mainlander awarded it in 2019. Email: [email protected].
Dr. Yueh H. Chen Received her PhD at the University of Buffalo, SUNY. She is a professor of finance at Kaohsiung National Sun YAT University in Taiwan. She published papers in the International Journal of Currency and Finance, Resources and Energy, Forecasting, Financial Review, Applied Economics, International Journal of Finance, Multinational Finance, Journal of Multinational Corporate Journal, School of Business and Economics, Asian Pacific Management Review , , Journal of International Production Economics, European Journal of Operations Research, Journal of Business Research, etc. College student affairs, etc. Email: [email protected].
Dr. Shih-Sian (Sherwin) JhangAssistant Professor of Finance from the School of Management, Kaohsiung National Sunsen University, Taiwan, received his Ph.D. He published his papers in the Omega and Asia Pacific Management Review from the School of Management, Buffalo State University, Buffalo, New York. His current research areas include operations management, finance and supply chain management. Email: [email protected].
