Towards an integrated view of IT value measurement

One of the most enduring questions at the intersection of accounting and information systems is measuring the value of Information Technology (IT). This longevity is unsurprising — measuring the value of IT is difficult at best. Literature on this issue falls into two broad research streams. One stream, which draws largely on mainstream financial accounting and economics, employs independently observable measures, such as capital market reactions, return on assets and changes in market share, to assess the value of IT in an organization. The ready comparability of such measures makes them quite desirable. However, accurately linking them to the underlying IT is problematic as often they do not solely capture the impact of IT in the organization. An alternative stream of research, which draws on the behavioural sciences, uses more subjective, perceptual measures such as assimilation, user satisfaction, perceived net benefit, and perceptions and expectations of quality. These measures are often more closely connected to the underlying IT and are often more diagnostic with respect to how effectively IT is used and value is realized. Nevertheless as subjective measures they are open to all the biases and inconsistencies of human judgment. In this paper we present a framework for understanding the theoretical characteristics of independently observable and perceptual measures. We seek to provide a more integrated perspective on these otherwise disparate approaches to IT value measurement. Through a review of the generally accepted findings on IT value measurement, we establish the need for an integrated view and demonstrate how such an integrated perspective might operate and advance our understanding of IT value measurement.