Information technology productivity paradox: A resource-based view and information technology strategic alignment perspective for measuring information technology contribution on performance

This paper seek clarity IT Productivity Paradox with measuring real Information Technology (IT) contribution on Performance. Two Measurement concept proposed are Direct and Indirect measurement. Concept of direct measurements was based on principle of Cobb-Douglas Production Function, which Performance was expected linear with IT resources. Indirect measurements concept was based on Resource-based View theory. IT Strategic Alignment rules were adopted in effort to align IT goals with business goals through IT-based Capability and IT Support for Core Competence. Originality and study findings were (i) to perform a comparison between a direct effect of IT Resources usage on Performance and indirect effect of IT Resources usage on Performance (ii) able to demonstrate the potential benefits loss of IT in company business process steps, (iii) proposed model was able to explain IT contribution that more transparent on Performance achievement, (iv) comparison results of research object showed that direct effect has a higher value than indirect effect.