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The relationship between computerization and performance: A strategy for maximizing the economic benefits of computerization

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Abstract

The relationship between computerization and several measures of overall firm performance is examined. Sample firms consisted of 138 wholesalers in a single industry with annual sales between one million and over ten million dollars. Three performance comparisons are presented: users versus non-users of computers, three levels of usage, and class of computer usage. Results indicate that computerization is related to overall performance. Non-users tend to be small firms with about average overall performance. On the other hand, firms owning computers and making extensive use of them in a variety of ways tend to be either very high or low performers. Possible explanations for these bi-modal results are presented.

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Cited by (0)

1

William L. Cron is an Assistant Professor with the Faculty of The Edwin L. Cox School of Business, at Southern Methodist University, in Dallas, Texas. He holds an M.B.A. and D.B.A. in Marketing from Indiana University His recent articles have appeared in Journal of Marketing, Industrial Marketing Management and Business Horizons. His research interests include marketing strategy for industrial distributors, the economic performance of industrial distributors and a variety of sales management issues.

2

Marion G. Sobol is a Professor of Management Science and Computers with the Faculty of the Edwin L. Cox School of Business at Southern Methodist University in Dallas Texas. She holds a Ph.D. in Economics from the University of Michigan and has taught at Michigan, Rutgers, Rider College and the University of Rhode Island. Currently she is president of Alpha Iota Delta, the National Decision Science Honorary. Her research interests include economics of computers, the computer service industry, social insurance programs, and labor market studies.

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Copyright © 1983 Published by Elsevier B.V.