Abstract
Although prior research had addressed the influences of contextual factors; including industry environment, current firm performance and industry IT technology used, on IT spending. We decide to test this influences and link them to the relation with future firm performance and firm size. Adding this last variable is unique. Moreover we had access to a unique database, which make us access to current firm IT spending. This study develops and tests a conceptual framework which tests (1) contextual factors impact on IT spending, (2) IT spending on future firm performance, (3) IT spending on firm size. Based on secondary data set, the results show support for some relationships of this framework. Notably, the findings are automate IT strategic role has a positive relationship with IT spending. This as to be link with the positive relationship between IT spending and firm size. We also find relationship between concentration index and IT spending. Moreover, we find a relationship between operating profit and IT spending and debt ratio and IT spending.
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