A Meta-Analysis of the Effects of IT Investment on Firm Financial Performance

Lim, Joon S.; Dehning, Bruce; Richardson, Vernon J.; Smith, Rodney E.

doi:10.2308/isys-10125

Cited by 54 publications

(36 citation statements)

References 64 publications

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“…This result supports much of previous research, such as [2] [17] [18] [3]. This study indicates different levels of firm performance for the same amount of IT spending over varying levels of good CG.…”

Section: A Corporate Governance and It Expendituresupporting

confidence: 90%

“…Besides these promising influences of IT adoption on the organization, further research indicated that discrepancies of the impact, especially on financial performance, exist [3]. Even, a broader investigation which studied the relationships between IT and organizational performance revealed contradictory evidence [10].…”

Section: Introductionmentioning

confidence: 99%

“…However, Masli et al [12] argued that the existence of productivity paradox is due to inappropriate measures implemented by the studies, time-delay required to realize the value of IT investment, and lack of good design that lead to poor usability by employees. Furthermore, Lim et al [3] argued that productivity paradox occurs because of among other things, differences in regulation and environment aspects.…”

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confidence: 99%

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Information Technology Adoption, Corporate Governance and Bank Performance

Muawanah

Gunadi

2018

JISEBI

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Many academicians and practitioners have been acknowledging that information technology (IT) adoption could improve company performance. However, previous research indicates contradictory evidence. These inconsistencies can be attributed to variations among the studies in choosing proxy for IT adoption and due to contingent on other factors. This research aims at analyzing the influence of a contingent factor that is corporate governance (CG) concerning the effectiveness of IT adoption in influencing company performance measured by change in return on assets. Two proxies are used for IT adoption: company expenses on IT and the level of the organization managing IT. Data is collected and analyzed from annual reports of all banks listed in Indonesia Stock Exchange from 2011 to 2013. Multiple linear regression models are employed. This research shows that corporate governance practice could improve the effectiveness of IT adoption in improving company performance. This research implies that better CG practices in providing direction and monitoring on IT can lead to better company performance.

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Section: A Corporate Governance and It Expendituresupporting

confidence: 90%

Section: Introductionmentioning

confidence: 99%

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confidence: 99%

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Information Technology Adoption, Corporate Governance and Bank Performance

Muawanah

Gunadi

2018

JISEBI

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“…In a COS setting, members can leverage the collaborative rent to improve their part of the combined value chains' business processes, which means that any leverage of collaborative rent will first affect the business processes of the COS's members. This situation is consistent with the notion that the first focal point of measuring IT's business value should be the IT-managed business processes (Alter, 2003;Dehning & Richardson, 2002;Lim, Dehning, Richardson, & Smith, 2011). Members' improved business processes assists in their leveraging their assets and investments and in lowering their cost of sales and service operations.…”

Section: Collaborative Rent-generating Potential and Business Value Osupporting

confidence: 67%

On Information Technology Competencies for Collaborative Organizational Structures

Prasad¹,

Green²

2016

CAIS

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Abstract:There is an uptake of organizations' involvement in collaborative organizational structures (COS). Consistent with the resource-centric views of the firm, we suggest that the COS members need to contribute their managed IT competencies to their COS, whose synergies would create COS IT competencies. We suggest three key IT competencies for COS: proactive top management decision synergy, collaborative and agile IT infrastructure, and cross-functional tactical management synergy. Using survey data, we found evidence of a positive association between these COS IT competencies and the collaborative rent-generating potential of the COS. We also found a positive association between the collaborative rent-generating potential of the COS and the business value of the COS members. The results suggest that developing COS IT competencies add value to a COS and its members. This study provides guidance for organizations looking to leverage their involvement in a COS.

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“…In this study, the researcher uses both firm level and more aggregated level studies (industry and national), which is not done by Kohli and Devaraj (2003) nor by this paper. Since we discussed IT payoff and meta-analysis research, we would like to mention also a related study done by Lim, Dehning, Richardson, and Smith (2011). The focus of the authors is the effect of IT on firms' financial performance.…”

Section: Productivity Paradoxmentioning

confidence: 99%

The productivity paradox: A meta-analysis

Polák

2017

Information Economics and Policy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: Terms of use: Documents inThe impact of ICT (information and communication technology) on economic performance has been the subject of academic research for several decades, and despite the remarkable and significant innovation in computer technology, usage, and investments, only a small growth in productivity was observed. This observations has been coined the productivity paradox. This paper meta-analytical methods to examine publication bias and size of ICT elasticity. The empirical part is based on a collection of more than 800 estimates of IT payoff effects from almost 70 studies written in the last 20 years. The meta-analysis reveals strong presence of publication bias within ICT productivity literature and using mixed effect multilevel model estimates the ICT elasticity to be only 0.3%, which is more than ten times smaller than what was reported by previous meta-analysis 10 years ago.

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A Meta-Analysis of the Effects of IT Investment on Firm Financial Performance

Cited by 54 publications

References 64 publications

Information Technology Adoption, Corporate Governance and Bank Performance

Information Technology Adoption, Corporate Governance and Bank Performance

On Information Technology Competencies for Collaborative Organizational Structures

The productivity paradox: A meta-analysis

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