Abstract

ABSTRACT Since the popular of the term IT in the mid-1980s, the literature has attempted to investigate the benefits of IT investment, due to the enormous potential of IT investment to achieve competitive advantage and better firm performance. It can be indicated from previous literatures that national economic growth and firm performance are influenced by IT investment. However, limited number of studies are performed at industry level. This section shows significant line of thought to investigate the impact of IT investment on economic growth and industry performance. The main contribution of this study is to add the relationship between IT investment and business performance at industry level. The results indicated that the total amount of IT investment had significant positive association with business performance at both economic and industry levels for almost all the industries covered in the study. Keywords Information Technology (IT), Investment, business performance, economic growth, labor productivity

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