Using BVL correlation to validate the effectiveness of an interorganizational system: analysis and statistical modeling

Abstract

The paper presents the initial stages in an empirical study assessing the effectiveness of an interorganizational information system. The evaluation problem is to validate value benefits to the investing organization that are recaptured from primary effects on customers. Business Value Linkage (BVL) correlation, a statistical evaluation methodology, is employed. Since the data set includes unique information on customer use of the system, the statistical model is specified to examine the effects of variation in IT input measurement on the estimation results. The value linkage to be analyzed promises to allow for both stages of the BVL methodology. If the first stage in the linkage is validated, a parallel study may be employed to determine revenue effects.<>