Abstract
Past research has struggled to identify any evidence of tangible benefits from information systems (IS). Nevertheless, it seems clear that IS can facilitate the identification of less costly sources of inputs for firms by making it easier and cheaper to evaluate prospective suppliers' offers. If this is so, then adopting IS should connote a value of information. We develop a model that relates this potential value to various characteristics. Then, using a random sample of 310 medium and large size manufacturing organizations, we test the validity of our model. Our results are strongly supportive of the model, and so provide support for the hypothesis that IS provides tangible benefits and has a positive impact on the organization's performance.
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