American Accounting Association 2006 Midwest Region Meeting March 30 – April 1 Chicago, Illinois

Friday, March 31, 4:00 p.m. to 5:40 p.m.
Concurrent session 4A - Belief Revision and Evidence (Accounting, Behavior and Organizations)

Title: The IT Productivity Paradox as Evidence of the Modern Managerial Revolution

Natalia Mintchik University of Missouri-St. Louis

ABSTRACT: In my paper I suggest an alternative explanation for the "productivity paradox" addressed in information systems (IS) and strategic management academic literature. Consistent with Focaultian tradition, I propose the increase of the top management’s power rather than corporate efficiency to be the main motive for some corporate investments in information technology (IT). In this regard, the empirically identified gap between IT investments and corporate efficiency might signal the discrepancy between managerial behavior and shareholders’ expectations. I discuss consequences of this discrepancy for the CEO’s authority, white-collar employees’ routines and the overall organizational climate. I argue that such an approach provides insights into IT social effects above and beyond the traditional economic framework of profit maximization.

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