ABSTRACT
As Investments in Information Technology (IT) have continuously increased. How to substantiate the business impact of IT investment has been a major concern. Numerous previous researches have attempted to investigate the business impact of IT investment at the firm level. But overall results of the findings have been inconclusive. To conceptualize the indirect causal impact of IT investment on organizational performance, this paper extends the model of Soh and Markus (1995) and refine it so as to include much more organizational contextual factors that have been identified as valuable in the published studies. The purpose of this paper is to present a process model to illustrate how, when and why IT investment is converted to favorable organizational performance.
