Exploring Different Roles of Information Technology for Increasing Productivity: Manufacturing vs. Service Industries

The phenomenon “productivity paradox” indicates that investment in information technology is not positively associated with financial performance. However, there have been debates as to whether this phenomenon is actually valid or not. In this study, we explore the different roles of IT for increasing productivity in manufacturing and service industries using the data mining method called Weka (Waikato Environment for Knowledge Analysis). We found that there exist both similarities and differences between the two industries. The role of CIO (Chief Information Officer) is addressed, as well as the role of Elearning Systems associated with productivity in the service industry. Finally, the vulnerability of small businesses to the IT productivity paradox is discussed.