Systematic Differences in Firm’s Information Technology Signaling: Implications for Research Design

Abstract

Because research programs investigating IT-related phenomena are hindered by limitations in the availability of archival data, researchers have used a variety of data collection strategies including the gathering of firms' IT signaling via press releases to the media. Little is known, however, about firms' IT signaling propensities. Here, contents of firms' press releases and annual reports are coded to test a model explaining a firm's propensity to signal stakeholders about its IT-related activities. Results demonstrate that firms transmitting greater numbers of IT signals tend to be low performers in their industries, tend to reside in industries characterized by a transform industry IT strategic role and tend to be larger. Implications of these findings for research design are provided.

An Empirical Assessment of IT Governance Transparency: Evidence from Commercial Banking

“…This finding could be related to the fact that this study particularly focuses on the commercial banking industry where the strategic and competitive role of IT generally is perceived to be particularly high (Banker, et al, 2009;Zmud, Shaft, Zheng, & Croes, 2010). In such an industry environment, voluntary disclosures on IT related topics might result in particularly high reporting cost.…”

The Effect of Positive and Negative Signals on Perceived Deceptiveness of Websites in Online Markets

“…In addition, the effects of brand [19], retailer reputation [14] and store environment [3] have been studied. In Information Systems research, the issue of signaling has been discussed in the areas of strategic signaling [58], offshore outsourcing [22], and software service provider markets [4]. Signaling theory has been used in the context of online commerce to investigate how reputation, warranties, perceived website investment and advertising expenditures influence trust and perceived risks with an online retailer [6], [47], [50], [55], and to evaluate the role of website quality as a signal of product quality [56].…”

The Influence of Technology-Related, Market-Related, and Standards-Related Strategic Signaling During a Standards War

“…Press releases are generally considered an effective signaling medium for informing customers, business partners, competitors, analysts, and investors of competitively important planned, in-progress or completed actions/events, and for strategically leaking information [13] [65]. Since press releases are subject to public and legal scrutiny, firms are cautious about bluffing via press releases, thus maintaining a sense of propriety [13], [33], [65].…”

“…Since press releases are subject to public and legal scrutiny, firms are cautious about bluffing via press releases, thus maintaining a sense of propriety [13], [33], [65]. As a consequence, considerable research across a variety of disciplines has applied structured content analysis of transmitted press releases to study the influence of firms' strategic signals on stock prices [7], [38], [39], [63]- [65].…”