A partial adjustment approach to evaluating and measuring the business value of information technology

Lin, Winston T.; Chuang, Chia-Hung; Choi, Jeong Hoon

doi:10.1016/j.ijpe.2010.05.007

Cited by 32 publications

(7 citation statements)

References 38 publications

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“…Fundamentally, this is the issue of the pay efficiency paradox. In this area, there are three cases of partial adjustment speeds, namely, constant (Lin et al, 2010;Nerlove, 1958), dynamic and variable (Lin & Kao, 2014), and stochastic and dynamic (Lin, Chen, & Hung, 2019).…”

Section: Conclusion and Extensionsmentioning

confidence: 99%

“…Multicollinearity is an issue because firm value/performance is correlated with CEO's characteristics such as age, tenure, and experience (Hambrick & Mason, 1984), with CEO ownership (Kim & Lu, 2011;Lilienfeld-Toal & Ruenzi, 2014), and with firm size (Lee, 2009). Accordingly, in this paper, we propose using the seemingly unrelated regression (SUR) approach to cure this problem (Binkley, 1982;Binkley & Nelson, 1988;Lin, Chuang, & Choi, 2010).…”

Section: Introductionmentioning

confidence: 99%

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Chief executive officer compensation, firm performance, and strategic coopetition: A seemingly unrelated regression approach

Lin

Shi

2019

Manage Decis Econ

Self Cite

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Coopetition denotes the simultaneous cooperation and competition in a business relationship and is broader in depth and width than competition. This pioneering comparative study employs a seemingly unrelated regression system to investigate the impact of peer‐pay bias and pay‐for‐relative performance upon the highly controversial chief executive officer (CEO) pay. The analysis of the 21 Dow–Jones firms from 1992 to 2013 shows that the pay‐for‐performance relationship is contingent on the fit between CEO's strategic decisions and firm's core competency. The CEO pay is driven by the intensification of firm coopetition. We contribute to executive compensation, corporate strategy, and econometric methods.

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Section: Conclusion and Extensionsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Chief executive officer compensation, firm performance, and strategic coopetition: A seemingly unrelated regression approach

Lin

Shi

2019

Manage Decis Econ

Self Cite

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“…The impacts of ICT on economic growth were different for different countries [17]. Some studies also revealed that the "productivity paradox" was not common and could be observed in either developed countries or developing countries [7,18]. Therefore, the business value of IT must be studied in a specific country.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In 2014, Acemoglu et al argued that the "productivity paradox" also existed in the United States, at least in its manufacturing sector [6]. In 2010, Lin et al refuted the general argument that the IT "productivity paradox" had disappeared in developed countries and existed only in developing countries [7]. Therefore, the business value of IT and the "productivity paradox" (which may be observed in both developing and developed countries [8]) must be investigated in specific contexts.…”

Section: Introductionmentioning

confidence: 99%

Dynamic Influences of FDI and R&D Expenditures on IT Business Value: An Empirical Test from China

Zhang

Xin

et al. 2022

Sustainability

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Information technology (IT) has become common in various economic and social fields, accompanied by the objective of facilitating the development of human society. However, the business value of IT has always been uncertain, with the IT “productivity paradox” problem becoming a core research topic. Previous studies on this issue have largely ignored the influences of national characteristics, such as foreign direct investment (FDI) and research and development (R&D) expenditure, on the business value of IT. To address this research gap, this study examined the dynamic influences of FDI and R&D expenditures on the business value of IT. Based on the assumption that the adjustment speed of economic growth is affected by both FDI and R&D expenditures, we established a partial adjustment model of dynamic adjustment speed and the individual and combined effects of FDI and R&D expenditures during the period from 2000 to 2017 to empirically examine the economic performance of China and its “productivity paradox” problem. The findings revealed that the individual and combined effects of FDI and R&D expenditures significantly improved the adjustment speed and economic performance of China during that period, that IT significantly influenced economic growth but did not improve economic performance, and that an IT “productivity paradox” existed in China at that time. In addition, IT-driven changes in economic performance could be compensated for or replaced by FDI and R&D expenditures, suggesting that these two factors have a substitutive or complementary effect on IT-driven changes. Therefore, the business value of IT business value was not determined by IT itself; rather, the important effects of national macroscopic factors, including FDI and R&D expenditures, must be taken into account.

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“…In their analysis, based on Resource-Based Theory (Barney, 1991), they were unable to establish a difference between the performance of companies with higher IT installed capacity, and those with lower capacity. Lin et al (2010) investigated the role of IT in the increase of productivity in a small number of countries. Using three different macroeconomic models, they found that the UK and Japan experienced productivity increases of more than 100% during the period from 1998 to 2006, corresponding to their IT investments, while France, Austria, and Belgium experienced a decrease in value from their investments.…”

Section: Introductionmentioning

confidence: 99%

Gestão de valor em projetos de TI: um estudo sobre organizações no Brasil

2019

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Resumo Atualmente, admite-se a insuficiência da avaliação de projetos baseada em restrições de escopo, prazo e custo para assegurar a criação de valor pela organização. Apesar disto, essa métrica continua sendo, muitas vezes, a única utilizada para avaliar o sucesso dos projetos. Neste artigo, a partir de referências teóricas, analisa-se como algumas empresas nacionais e multinacionais gerenciam a criação de valor por suas carteiras de projetos de Tecnologia da Informação (TI). Busca-se entender os processos utilizados, bem como identificar os principais desafios encontrados pelas organizações pesquisadas. Para atingir esse objetivo, foi utilizada uma abordagem exploratória qualitativa baseada em entrevistas semiestruturadas com gestores de portfólios de TI de 14 organizações brasileiras de diversos segmentos e portes. A pesquisa indicou oportunidades de melhoria e mostrou que poucas são as organizações que avaliam de forma efetiva a criação de valor por seus projetos, prevalecendo uma visão de desempenho não alinhada aos resultados corporativos alcançados e que não colabora com o processo de melhoria e aprendizagem organizacional.

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A partial adjustment approach to evaluating and measuring the business value of information technology

Cited by 32 publications

References 38 publications

Chief executive officer compensation, firm performance, and strategic coopetition: A seemingly unrelated regression approach

Chief executive officer compensation, firm performance, and strategic coopetition: A seemingly unrelated regression approach

Dynamic Influences of FDI and R&D Expenditures on IT Business Value: An Empirical Test from China

Gestão de valor em projetos de TI: um estudo sobre organizações no Brasil

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