Re-examining the causal structure of information technology impact research

The growing importance of information technologies (IT) could be the hallmark of our era, with its transformational effect in “changing the world” (Agarwal and Lucas, 2005, p. 391). The amount spent on IT, around $2.6 trillion in 2006, a 5% increase from 2005 (Gartner Group, cited in Edwards, 2004) is a good indication of its worldwide dissemination. Spending in this area is led by the U.S. and Europe, with 32% and 30% of worldwide spending, respectively, and representing between 4% and 6% of these countries’ GDP (IDC, 2004). Organizations in the U.S. alone invested over $750 billion in IT in both 2004 and 2005, and it has been estimated that IT spending will continue to rise at a rate of 4% to 8% in the coming years, surpassing $900 billion in 2007. Canadian firms’ IT spending was estimated to be around $49 billion in 2004, with an expected increase of 8% by 2006 (WITSA, 2004).