Effect Of IT Investments Research Articles

The Influence of Corporate Social and Environmental Responsibility and Information Technology Investment on Company Value with Corporate Innovation as a Moderation

This research aims to determine the influence of several variables, namely (1) CSER and (2) IT investment, on company value, which is moderated by the company innovation variable in mining sector companies listed on the BEI in 2018 - 2022. The population in this study is all mining companies, as many as 76 companies. Sampling used purposive sampling with certain criteria and obtained a sample of 9 companies multiplied by five years of observation to become 45 financial reports. The data collection technique used is a documentation study that analyses the financial reports of mining companies that meet the sample criteria according to the needs of the data to be processed. Data were analysed using the STATA application. The research results found that CSER and IT investment had no effect on company value; company innovation was not able to strengthen the influence of CSER on company value, while company innovation was able to strengthen the effect of IT investment on company value. This research was also conducted on mining companies, considering that the mining sector is closely related to the environment. According to the data previously presented, the value of companies in the mining sector experiences fluctuations, which decrease more frequently each year.

The nonlinear and threshold effects of IT investment on the banking sector of Bangladesh

The nonlinear and threshold effects of IT investment on the banking sector of Bangladesh

IT investment and Islamic banking performance in Indonesia: Do Sukuk issuance and Sariah governance matter?

IT investment and financial performance are crucial issues for the Islamic banking industry. An Islamic banking (IB) that is established in a technologically advanced setting, employs mostly young and tech-savvy employees, and adheres to Islamic principles in all aspects of its activities, needs to invest in IT. This investment in information technology is essential if they are to remain competitive and achieve solid financial performance. This study aims to investigate the effect of IT investment on Islamic banking performance in Indonesia. The study used data of 14 Islamic banks in Indonesia, from 2012 to 2021. By employing panel regression analysis, the study revealed that IT investment has a significant impact on Islamic banking performance, indicated by ATM and Expenses for Human Resources (BG), which has the coefficient 1.75e-07 (Alpha 0.060) and 4.73e-14 (Alpha 1%), respectively. The study also documented a significant relationship between IT investment and IB performance, caused by Sukuk issuance and the Shariah supervisory board. Sukuk issuance has a negative impact on banking performance in relation to IT investment, while shariah governance (board of directors and shariah supervisory board) has a positive impact. Hence, it is also important for an Islamic banking to minimize the use of Sukuk, which until now was still categorized as debt, and to maximize the role of good governance to back up IT spending.

Industry 4.0 and intellectual capital in the age of FinTech

In the Fourth Industrial Revolution, the prevalence of innovation and technology in the financial sector is indisputable. The purpose of this study is to determine the effect of IT investments on intellectual capital, aggregated and decomposed into its components, competitive advantage, and the performance of banks (Tobin's Q and CAMELS). These forces are further classified in terms of dual banking, bank size, and market position, and any country-based phenomena that might be applicable. Moreover, data is collected from 65 banks in the SAARC region, based on a time span of 11 years, from the years 2008 to 2018, and involving a total of 715 observations. Based on the endogeneity of IT investments, this study uses GMM regression for empirical analysis. The findings elicited from the empirical results demonstrate a positive impact of IT investments on the intellectual capital, and some sub-components. In the case of the impact of IT investments' on competitive advantage, the results are have come out to be diverse in nature. From a theoretical perspective, this paper contributes to the existing literature by presenting a valuable analytical framework for exploring the role of IT investments in a rapidly changing financial sector.

Time Lag Effects of IT Investment on Firm Performance: Evidence from Indonesia

Time Lag Effects of IT Investment on Firm Performance: Evidence from Indonesia

Digital Strategy and Discretionary Expenditures: Novel Insights From a Configurational Approach

How do IT investment and IT alignment with respect to overall strategy and a functional strategy influence firm profitability? This study investigates the joint effects of IT investment and strategic IT alignment on firm profitability by using a configurational perspective and fuzzy-set qualitative comparative analysis (fsQCA) method that allow us to account for complex and hitherto unexplored interactions among multiple alignment types and investments in IT, R&D, and advertisement. To draw insights on these complex interactions, we use a rare archival and survey data from firms and business units belonging to a leading conglomerate in India. Our fsQCA results reveal multiple equifinal configurations to achieve high firm performance, and asymmetrical causal structure between high-performing and low-performing configurations. Thus, we show that the effects of IT investment and strategic IT alignment with respect to overall business strategy and functional quality strategy are much more complicated than previously thought. This study contributes to theory and practice by providing a few viable configurational solutions that explain multiple causal recipes to configure IT investments with other types of investments for different types of alignments to produce high firm profitability for large and small firms . We discuss implications for research and practice.

Disaggregation of the IT capital effects on firm performance: Empirical evidence from an IT asset portfolio perspective

Although prior research has frequently focused on aggregate IT capital, most firms invest in specific types with different goals. Each type of capital represents a distinct factor of a firm’s production function. Drawing on a theory-of-production framework, we disaggregate overall IT capital into specific types to examine their unique effects on firm performance over time. We categorize these IT-specific production factors into a firm’s installed personal computers for individual information access, servers for collective information access, storage capacity for information stock, and nodes for information flow. We investigate when and how each IT capital type contributes to firm performance by analyzing the 5-year panel data of 1,548 US firms. Our findings show that individual information access capital and collective information access capital have immediate effects on profitability through cost efficiency or sales growth. By contrast, information stock capital has a lagged effect on profitability. In addition, information stock capital complements individual information access capital in improving profitability, as well as contributing to sales growth and cost efficiency equivalent to firm size. These results extend the existing research on firm-level effects of IT investments by demonstrating that different IT capital effects have unique ways of affecting firm performance.

산업의 경제 성장과 IT 투자 : 경제 성장은 IT 투자의 효과인가, 아니면 IT 투자 결정의 요인인가?

생산함수이론을 이용하는 대부분의 연구는 IT활용의 결과로 경제 성장을 보고 있다. 그러나 몇몇 연구들은 경제 성장을 IT 투자의 결정요인으로 보고 있다. 이러한 결과가 산업 수준에서도 유효한지를 조사하기 위하여, 이 연구는 미국의 1997년부터 2007년까지의 산업 자료를 이용하여 양방향 인과성 분석이 가능한 그레인저 인과성 분석을 수행하였다. 많은 산업에서 IT 투자는 경제 성장에 영향을 주었으며, 몇몇 산업에서 경제 성장이 IT 투자에 영향을 주었으며, 몇몇 산업에서는 IT 투자와 경제 성장은 아무런 영향 관계가 없었다. 산업 수준의 IT자본과 산업총생산을 국가 수준으로 합산한 시계열 자료를 이용한 분석에서는 IT 투자와 경제 성장은 어떠한 영향 관계가 없었으나, 산업 특성과 시간 특성을 고려하는 산업 수준의 패널 자료를 이용한 분석에서는 양방향 인과 관계가 발견되었다. 이러한 결과는 IT 생산성 역설의 이유였을 수도 있다.

Effective Governance Using the Smac Technology in the Government Services of Andhra Pradesh: A Case Study on Public Distribution System

SMAC technologies are going to help in providing exchange of ideas and develop collaboration between government and citizens. SMAC, which is combined and integrated use of Social Media, Mobile, Analysis and Cloud computing, is very useful for providing E-Governance agility. This is the IT solution for increasing the agility of services provided by e-governance. It also increases efficiency of egovernment bodies, lowering costs for public services and increases effect of IT investments. Even though having low budget for providing better service to the citizens and also implementing the welfare schemes effectively the Government of A.P had taken forward step to implement advanced technology in the government services. State Government of Andhra Pradesh introduced the Public Distribution System in the year 1974. Main purpose is to control over the prices of the essential commodities and also distribute them to poorest of the poor. Huge amount was spent on the subsidies by the Government.Because of dummy cards, duplicate cards, weighing differences the real benefit is not reached to the beneficiaries. The purpose of introducing the SMAC Technology in Public Distribution System (PDS) is increasing the effectiveness of PDS .There is no study about the impact of SMAC Technology in PDS specifically in Nellore city. In this paper an attempt is made to know the impact of SMAC Technology in PDS. Therefore the purpose of this study reveals the impact of SMAC technology in PDS system.

Hospital performance: Efficiency or quality? Can we have both with IT?

The influence of IT investment on hospital efficiency and quality are of great interest to healthcare executives as well as insurers. Few studies have examined how IT investments influence both efficiency and quality or whether there is an optimal IT investment level that influences both in the desired direction. Decision makers in healthcare wonder if there are tradeoffs between their pursuit of hospital operational efficiency and quality. Our study involving a 2-stage double bootstrap DEA analysis of 187 US hospitals over 2years found direct effects of IT investment upon service quality and a moderating effect of quality upon operational efficiency. Further, our findings indicate a U-shaped relationship between IT investments and operational efficiency suggesting that IT investments have diminishing returns beyond a certain point.

Examining Complementary Effects of IT Investment on Firm Profitability: Are Complementarities the Missing Link?

Prior research has documented that IT investment increases market returns. Economic theories predict such returns to be recognized in accounting profitability; this relationship remains ambiguous in prior literature. We reexamine the relationship between IT investment and firm profitability. Our approach is unique in that we examine complementarities between distinct IT components. We document that a firm’s investments in IT components exhibit different impacts on its profitability conditional on the level of investments in complementary components.

Empirical Research on the Effect of IT Investment on Enterprise Performance

Empirical Research on the Effect of IT Investment on Enterprise Performance

A Quantitative Measure of the Effects of IT Investment on the Risk of Bankruptcy in Small and Medium-Sized Companies

This paper examines the relation between the competitiveness of SMEs, i.e. their ability to survive, and the characteristics of their ICT investments: it provides evidence that some factors (such as the development of decentralised organizational structures, or the use of Internet resources) appear to be related to better financial health and, consequently, with a better chance of survival. By applying multivariate statistical methods we obtain quantitative measures of the intensity of these relations, as well as of the relative risk associated with each characteristic of the information system.

IT & Economic Performance: A Critical Review of the Empirical Data

The present study undertakes a critical review of the research around the multisignificant issue of the correlation between the IT investments and the economic performance to both micro and macroeconomic level. The aim of this study is to shed light on the interaction of IT with the economy, at corporate, industry and national level and document it’ s contribution to productivity and therefore to economic growth. The study concludes that there is a positive effect of IT investments to both the above economic indicators in all aspects, but is something that needs further research so as to find a clearer and risk adjusted relation.

The Elusive Technology ROI

Why is it so hard to measure the ROI on technology? How might we make some sense of the controversy surrounding IT's value? Should we let our vendors tell us what the ROI of a new technology might be at our company? Do we have all of the facts to make a legitimate prediction of ROI prior to undertaking a project, or does the ROI analysis require making a lot of glass-half-full conjectures? Information systems managers continually struggle to evaluate potential projects and establish the bottom-line effect of IT investments. There must be an easier way to perform this important task.

What a Difference a Year Makes: Time Lag Effect of Information Technology Investment on Firm Performance

How long does it take for a firm to realize the performance benefits of its IT investment? This article explores the time lag effects of IT investment on firm performance. Using longitudinal data of 1421 firm-time observations over a period of six years (1991–1996) as the initial time point of IT investment, we examined time lag effect on firm performance in a five-year time window. The performance data for the sample spans 12 years, from 1989 to 2000. The results demonstrate a strong support for time lag effects on the relationship between IT investment and firm performance. Specifically, our study found that it took an average of approximately three to four years after the year of investment for the firms in our sample to realize the greatest performance benefits. The findings offer useful implications for researchers and managers to better understand the link between IT and firm performance so that they can make wiser decisions to maximize the business value of their investments.

Risk and return of IT investment: evidence from SCM and CRM announcements

Measuring the effect of investment announcements on a firm's stock performance has become an important method in research on IT/IS business value, especially in the discussion of the consequent changes in corporate risk-return relationship. This paper selects the announcements made by US listed companies that implemented supply chain management (SCM) and customer relationship management (CRM) from 2000 to 2008. By testing the stock performance with event study method, and comparing the differences between sample and control groups, we find that; 1) during the event window, SCM and CRM announcements can bring some degree of risk-adjusted abnormal return, but the return effect is unstable across the years observed; 2) in the long run, there is no abnormal return from SCM and CRM investments; 3) in the long term, SCM and CRM investments do not increase the systematic and unsystematic risk of the companies; 4) some moderating factors may affect the risk and return of SCM and CRM announcements. Our results enrich research on the effect of IT investments on company performance, and contribute to the stream of event studies in IT business value.

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

ABSTRACTWe use meta-analysis techniques to examine research choices that affect findings with respect to the return on IT investment. Recent research has established that IT investment is substantially related to firm financial performance. We find, however, that the relationship between IT investment and performance varies, depending on how both financial performance and IT investment are measured. Despite criticism of accounting measures as indicators of IT payoff, we find that the relationship is often stronger in studies that employ accounting measures rather than market measures of firm performance. This difference is driven by research that focuses on the process-level impacts of IT investment. Furthermore, the relationship is also stronger when IT investment is measured as IT strategy or spending, rather than IT capability. We discuss the practical implications of the results of our meta-analysis and suggest new directions for future theory development and research.

Betwixt and Between? Bringing Information Systems and Accounting Systems Research Together

I n 2008, the Research and Publications Committee of the Information Systems Section of the American Accounting Association decided to sponsor a special issue of the Journal of Information Systems (JIS) entitled ‘‘Reviews of Information Systems Research.’’ The objective of the special issue is to ‘‘publish papers that review a stream of research in information systems (IS) broadly defined.’’ The Committee intended that submissions would review and integrate the IS (information systems) and AIS (accounting information systems) literatures and suggest future research directions in both disciplines. The special issue followed a previous valiant and groundbreaking effort in IS/AIS research integration for the IS section by Professors Vicky Arnold and Steve Sutton (Arnold and Sutton 2002). As editor of this special issue, I took a somewhat different approach to the task than is normal. First, rather than a regular call for papers, I requested researchers to submit extended abstracts. The objectives of this approach were to ensure that the scope of the proposed article was concomitant with the objective of the special issue and to identify any potential overlaps in subject matter. In this process, I was able to negotiate the amalgamation of several writing teams. I also ensured that where there was commonality in subject matter, the writing teams were introduced to each other and worked to manage the writing process. Second, I had clear views on how the papers should be structured. As an author of one of the chapters in the earlier monograph for the IS section, I was impressed with the systematic approach Dr. Arnold took to ensuring a common approach in the structure of the contributions and the discipline exercised in ensuring that the goals of the monograph were achieved. It is simpler to achieve a common approach in a monograph than it is in separate papers in JIS. My ambition was, then, to strongly suggest directions to authors but not to mandate a single approach. As a consumer of many literature reviews, I realize how easy it is to maroon readers in a Sargasso Sea, not knowing how to navigate their way. Readers need clear navigational markers and a sense of direction. Third, I saw the review process as a mutual exercise among writing teams, reviewers, and myself as editor. Given the scope of this exercise, I deliberately took a more active editorial role than is normal. These objectives probably added somewhat to the time taken for publication but did, I believe, improve the quality of the papers.

IT 근로자의 부가가치 창출에 대한 기여도 분석

As the IT labor captures an increasing proportion of the total labor, it is important to analyze the contribution of IT labor to national economy. Although there has been abundant research about the effect of IT investments, it is difficult to find a research about IT labor's economic contribution. Most prior studies on the effect of IT investment have focused on the effect of IT capital investment. This paper empirically explores whether and how IT labor makes contribution to Korean economy. And also this paper examines the economic contribution of IT experts and semi-experts in Korean industries over the 2000 to 2007 period, using production function framework and panel data set for 24 industries constructed from 'Input-Output table' and 'Research on Wage Structure Survey'. Based on the full sample of 120 observations, this study finds that a 1% increase in IT labor wage is associated with 0.042190% increase in added value. In the case of non-manufacturing industries on the sample of 50 observations, this study finds that a 1% increase in IT labor wage is associated with 0.074908% increase in added value. And in the case of IT experts (separated from IT semi-experts), this study finds that a 1% increase in IT expert's labor wage is associated with 0.013957% increase in added value of all industry. This study provides implication for policy makers and managers. The results suggests that non-manufacturing industries can capture further benefits by increasing investment in IT labor. Building on this study, future research should examine the impact of IT labor at a more detailed industry level and the firm level.