Investigation into How Managers Justify Investments in IT Infrastructure

Richmond Ikechukwu Ibe



Organization leaders are dependent on information technology for corporate productivity; however, senior managers have expressed concerns about insufficient benefits from information technology investments. The problem researched was to understand how midsized businesses justify investments in information technology infrastructure. The purpose of this study was to investigate the business factors or approaches leaders of midsize businesses use to justify these investments. A qualitative case study approach was used for this exploration, with a combination of individual interviews and a small focus group. Research questions asked about types of investments as well as justifications of these investments. The conceptual support for the study was organization performance theory. Data were collected using a self-designed questionnaire and from a small focus group session, which were coded and analyzed for themes and patterns related to investments and justification. Findings were that managers justify investments in information technology infrastructure based on intangible benefits, including efficiency, customer services, high productivity, and gaining competitive advantage. This research can be adopted for complex initiatives within levels of organizations such as economic development planning, leadership programs, government projects, environmental development, and infrastructure investment projects. Implications of positive social change include increased productivity and revenue, improved efficiency, employee satisfaction, and cost savings to the organizations.



Appel, A. M., Dorgan.S. J., & Dowy, J. (2005). When IT creates value. Mckinsey Quarterly. Retrieved from

Accenture, (2009). Amid the downturn, firms look to information technology to restore strength [Press release]. Retrieved from article_id=4913

Ambrose, L. (2002). Contemporary justice research: A new look at familiar questions.

Organizational Behavior & Human Decision Processes, 89(1), 803-812. doi:10.1016/j.bbr.2011.03.031

Chen, C., Shih, H., & Yang, S. (2009). The role of intellectual capital in knowledge transfer. Journal of IEEE, 56(3), 402-411. doi:10.1109/tem.2009.2023086

Creswell, J. W. (2007). Qualitative inquiry and research design: Choosing among five approaches (2nd ed.). Thousand Oaks, CA: SAGE.

Dekleva, S. (2005). Justifying investments in IT. Journal of International Technology Management, 16(3), 1-8. Retrieved from

Earl, M. J. (1989). Management strategies for information technology. New York, NY: Prentice Hall.

Gurbaxani, V., & Whang, S. (1991). The impact of information systems on organizations and markets. Communications of the ACM, 34(1), 59-73. doi:10.1145/99977.99990

Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard. Boston, MA: Harvard Business School Press.

Mahapatra, B. (2011). EVA Helps Companies Evaluate the Cost of IT Operations. Gartner. Retrieved from

Melville, N., Kraemer. K.L., & Gurbaxani, V. (2004). Information Technology and Organizational Performance: An Integrative Model of IT Business Value. MIS Quarterly. Retrieved from

Symons. C. (2008). Justifying and funding infrastructure investments. Retrieved from

Wessels, P. (2003). Justifying the investment in information system. Journal of information management, 5(2). Retrieved from

Youndt, M., Subramanian, M., & Snell, S. A. (2004). Intellectual capital profiles: An examination of investments and returns. Journal of Management Studies, 41(2), 335–361. doi:10.1111/j.1467-6486.2004.00435.x

پاراگلایدر Full Text: PDF


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

ISSN : 2251-1563