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Parameter Non-Stationarity In A Model To Estimate The Business Value Of Information Technology, Robert J. Kauffman

Research Collection School Of Computing and Information Systems

Developing robust and refined measures to quantify strategic impacts is a major challenge facing researchers who seek to improve methods for IT investment evaluation. This paper presents a means to test for parameter "non-stationarity" in a model which quantifies the strategic contribution of IT. An iterative "jackknife" procedure is used to diagnose if different local competitive and demographic conditions present in branch banking enhance or suppress leverage on deposit market share associated with membership in an ATM network. Preliminary results suggest this approach will be useful for managers who need to evaluate similar ITs which operate in different environments.