Abstract
Despite the fact that U.S. companies have made substantial investments in information technology (IT), there is a paucity of empirical research on the nature of IT investments and boundary conditions that determine the extent of these investments. This study reviews the extant IT literature, develops a series of propositions related to the multidimensional nature of IT investments and their relationship with several antecedent conditions, and presents the results of an empirical test of the propositions in the context of the purchasing function of U.S. firms. Our results support the premise that IT used in purchasing is not a homogeneous phenomenon, but can, instead, be represented by three dimensions: base computer systems and support, purchasing-specific applications, and vender communications. Our findings further indicate that IT dimensions respond in a varying fashion to different antecedent conditions. Support was also found for the building-block nature of IT investments.