Assessment of the Value of Information Technology

This paper discusses the roles played by information technology (IT) in organiza tions, among which the focus is on profit organizations, and analyzes the conn otation and characteristics of IT value together with the issue of quantitative assessment. On this basis, the authors put forward several empirical approaches and investigate the effect of IT input on organizations' benefit with the struc tural equation modeling approach to show that the sole application of quantitati ve index may under-assess IT value and consequently result in the productivity paradox of IT.