Measuring the added value of IT in construction firms

The added value of information technology (IT) varies widely along firms. The objective of this paper is to analyse the underlying factors that enlarge or reduce the added value of information systems and IT-applications in construction firms. By applying the process-oriented approach of Tallon et al.. (2000) the value of these information systems on the process-level is assessed. Information systems and IT-applications create value for an organization by improving individual business processes, or linkages between processes, or both in terms of Porters’ value chain (Porter and Millar, 1985). Determining the IT-value in a structured and meaningful way requires an operational description of what IT is in those critical value activities. For this analysis, the concept of the IT-based infrastructure of Renkema (2000) is used. By applying the IS Assessment and Contingency Theory of Myers et al.. (1998) critical success factors for the alignment of IT and business processes are shown. In order to verify our expectations, an empirical research was conducted by a multiple case study of five firms in civil engineering and housing and real estate