Information Technology Firms Research Articles

Asserting and transcending ethnic homophily: How entrepreneurs develop social ties to access resources and opportunities in socially contested environments

AbstractResearch SummaryIn socially contested settings, it is often difficult to connect with (diverse) others, and it is unclear how entrepreneurs in these contexts may develop the social ties that previous research has shown to be valuable. We studied this subject matter in Kenya, an ethnically fractionalized society that recently experienced the decentralization of government, which required entrepreneurs to deal with both in‐group and out‐group ethnicities. We conducted an inductive case study of four Nairobi‐based companies and captured the creative tactics that they used to transcend ethnic homophily (by defocusing from ethnicity and reframing the in‐group) while also asserting ethnic homophily (by signaling tribal affiliation and leveraging others' ethnicity). We contribute to a deeper understanding of how and why entrepreneurs in socially contested settings develop social ties.Managerial SummaryEntrepreneurs in socially contested settings rely on social networks to access resources and opportunities. However, it is unclear how entrepreneurs in these settings develop and use these networks. We studied this question in an ethnically fractionalized setting that recently experienced the decentralization of government: Kenya. Entrepreneurs who previously provided information technology (IT) services to the central government had to deal with both own‐tribe and other‐tribe contacts to receive new contracts. We studied four Nairobi‐based IT firms that operated across a variety of counties and analyzed the creative tactics that entrepreneurs in this context use to cross ethnic divides while also working with own‐tribe contacts. This contributes to our collective understanding of how and why entrepreneurs in socially contested settings develop diverse social ties to access resources and opportunities.

Accrual and Cash Financial Performance of Information Technology Companies During the COVID-19 Pandemic

Abstract Research background Many companies have experienced a significant impact on their financial performance due to the pandemic period. The effects were mostly negative as a result of by due to the various restrictions that were put in place to limit direct contact among people and restrict mobility during the pandemic. As a result, online contacts increased, therefore, we decided to ask the following research question: Did the performance of Information Technology companies increase during the COVID-19 pandemic? Purpose The aim of the research was to examine the financial performance of Information Technology businesses from 2018 to 2021. In the article, a ratio analysis was conducted using the bi-annual financial data of IT companies. Research methodology The analysis included data accrual and cash results. The objective of the investigation was to assess the economic status of Information Technology firms, utilizing various analytical tools such as ratio analysis. Descriptive statistical methods were also employed to provide an overview of the findings. Furthermore, logit and discriminant models were utilized to summarize the financial outcomes. Results Based on the findings of the study that examined the financial status of Information Technology firms before and during the COVID-19 pandemic, it appears that these companies were able to maintain or improve their financial status during the pandemic, which goes against the general trend observed in the economy. Novelty Our examination of Information Technology firms’ bi-annual accrual and cash financial outcomes amid the COVID-19 pandemic is unique due to the macroeconomic element – the epidemic at such a scale had not taken place in many years of the Polish market economy.

The Application Research of Distributed Interface Coordination Based on Deep Reinforcement Learning in English MOOC Platform

Developing information technology and other business management firms is not the same as technological advancement. The only way we can declare that complete technical progress is in place and operating well in the nation is if the education system has been built. The educational system is set up to instruct pupils via wireless technologies and online classes. Advancement in online classes has resulted in the Massive Open Online Courses (MOOC) Platform. The advantage of the MOOC platform is that it is a platform that provides free online courses for anyone to register and continue the course at their own pace. On this MOOC platform, implementing Deep Reinforcement Learning (DRL) aids in choosing the course and learning through an intelligent mechanism. The transmission between students and teachers will significantly rise because of this teaching strategy through the Distributed Interface Coordination (DIC) mechanism where the resources are distributed in the wireless networking environment. Additionally, the registered students should possess privileges to access the resources. This combination of DIC with DRL can be termed as DIC-DRL model for the proposed system. The data was collected using a low packet rate and outdated wireless connection technologies. The suggested model has a 97.67 percent accuracy rate in comparison with the existing model's support vector machine (SVM) mechanism.

Can proactively induced organisational citizenship behaviour (OCB) foster positive work attitudes? Theorising the mediating role of ‘meaning of work’ for IT professionals

AbstractGiven the high employee turnover rates among information technology (IT) professionals, firms are on the lookout for ways to retain them. With this end in view, to keep their professionals committed and satisfied, many IT firms are making proactive efforts to induce a favourable organisational environment by encouraging employees towards extra‐role organizational citizenship behaviors (OCBs). However, there is scant evidence as to whether orchestrating proactively induced OCB results in positive work attitudes. Our study contributes by theorising the mechanisms through which OCB fosters positive work attitudes among IT professionals, which is expected to lower their turnover rates. Grounding our research in self‐perception and self‐determination theories, we hypothesize the relationships between IT professionals' OCB and their affective attitudes towards their organisation and job, as being mediated by their cognitive evaluations of the ‘meaning of their IT work’. We test the theorised model with data collected through a large‐scale two‐wave survey design from a multinational IT‐services company. The results offer a nuanced understanding of the relationship between OCB and positive work attitudes for IT professionals, which have significant implications for research and practice.

Information Technology Innovativeness and Data-Breach Risk: A Longitudinal Study

ABSTRACT The adoption of new Information Technology (IT) innovations has led to increased uncertainty among employees, a greater demand for security measures, and more entry points for cyber-attacks, which all increase the risk of data breaches for firms. Despite the prevalence of discussions around this issue, there has been a lack of empirical research examining the data breach risk associated with IT innovations. To address this gap, we have developed arguments based on an organizational learning theoretical framework that explains how IT innovativeness can exacerbate data breach risk. Through our analysis of a sample of data breaches that occurred between 2013 and 2021, we have discovered that there is a positive association between firm IT innovativeness and the risk of data breaches. We also find that the effects of IT innovativeness can vary under certain conditions. For example, we find that the positive relationship between IT innovativeness and data breach risk is mitigated when managers possess IT expertise or when firms have established extensive board connections with cybersecurity managers. Moreover, we find that the relationship between IT innovativeness and data breach risk is amplified in complex environments but not in dynamic or munificent ones. This study takes the lead in advancing the theoretical understanding and empirical validation of security-related risks associated with IT innovations. Moreover, our findings serve as a timely reminder for research and practice to carefully consider the implications of introducing novel technologies into firms and the potential dark side consequences that may arise. Additionally, this study underscores the importance of understanding organizational learning in risk assessment and change management, as well as the critical role of contextual factors in moderating the unintended security-related consequences linked to IT innovations.

Alignment of CSR Strategies with Business Objectives in IT Sector, Focusing on the Competitive Advantage

While numerous researchers have focused on examining the impact of Corporate Social Responsibility (CSR) on various aspects of business in different industries, there still remains a research gap in conducting comprehensive analyses of CSR strategies in Information Technology (IT) sector. Therefore, this study aims to address this gap by evaluating the effects of CSR on competitive advantage in the IT companies. In order to analyze data, AMOS structural equation modeling (AMOS-SEM) method was applied, and data were collected during February-April 2023 from 143 Iranian IT firms where CSR has not been appropriately dealt within theoretical as well as practical terms. The findings reveal that among the four components of CSR — legal, ethical, economic, and discretionary—, ethical, legal, economic, and discretionary dimensions have the most positive impact on competitive advantage, respectively. Taken together, these findings suggest a significant role for CSR in enhancing the level of competitive advantage in IT companies. In addition to the knowledge contribution, this study holds significant practical implications for IT company managers to strengthen their decision-making processes and develop effective CSR strategies.

Establishing the fuzzy integrated hybrid MCDM framework to identify the key barriers to implementing artificial intelligence-enabled sustainable cloud system in an IT industry

The purpose of this research is to identify the important barriers for developing a long-term Artificial Intelligence (AI) cloud system in an Information Technology (IT) business. A fuzzy integrated hybrid Multi-Criteria Decision Making (MCDM) model was established and applied to achieve this goal. In this ongoing analysis, Delphi was used to filter the most crucial ones from a list of 18 identified parameters, whereas, Analytic Hierarchy Process (AHP) was used to assess the relevance of each parameter. Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Interpretive Structural Modeling (ISM) were further applied to identify the cause-effect relationship and to construct the hierarchical interrelationships among the parameters. Finally, to identify the driving and dependence parameters, Cross-Impact Matrix Multiplication Applied to Classification (MICMAC) approach was used. The findings revealed that the most crucial elements in building a sustainable AI cloud system were technological, financial, and environmental concerns. More particularly, from all perspectives, digitalization is deemed to be the most critical within the group, with the greatest priority degree and significant driving as well as dependent tendency. According to ISM and MICMAC, user tendency to learn and R&D sector collaboration seems to be the most dependent and the independent factors respectively among the group. Remaining of the 13 factors are interrelated and operates as linkage obstacles. This study provides useful insights for IT firms trying to implement sustainable AI cloud systems and underlines the importance of including environmental and economic concerns into decision-making processes.

The Nature and Layers of Dynamic Capabilities of Firms Engaging in Business Model Innovations: A Qualitative Study on Information Technology Firms in Istanbul’s Science-Parks

This study aims to explore the dynamic capabilities (DCs) framework (with sensing, seizing, and reconfiguration dimensions) by exploring the fulfilment layer and underlying processes and structures employed in business model innovation (BMI) process within both new and established entrepreneurial firms. We employed exploratory and descriptive qualitative research method and gathered data through semi-structured interviews with entrepreneurs of nine firms operating in the science-park settings in Istanbul, Türkiye. This study uncovered rich insights about the DCs, as categorized in this study under 10 sub-dimensions. In addition, three different fulfilment layers of DCs emerged at the entrepreneurial firms: (i) the entrepreneurial capabilities at the individual layer, (ii) the entrepreneurial team’s complementary capabilities at the top managerial layer, and (iii) the mechanisms and routines at the organizational layer. DC sub-dimensions suggested in our study are clues for entrepreneurs to develop BMIs. Practitioners are recommended to consider their primary responsibility for BMIs processes independent of the size of the firms, to build entrepreneurial teams with partners having the complementary skill set and concentrate on the employees’ selection, as well as their adaptation to the firm routines. Additionally, the study complements Teece’s theoretical DC framework on BMI extending it into fulfilment layer and opens a fruitful research area for scholars.

What limits the innovation efficiency in China's ICT industry? A two-stage dynamic network slacks-based measure approach

ABSTRACT Based on the innovation value chain theory, the innovation process of the information and communication technology (ICT) firms is not only decomposed into R&D and commercialisation activities, but also its dynamic characteristics should be included in the evaluation system. To seek the underlying reasons for the inefficiency, a two-stage dynamic network DEA model within the SBM structure has been applied to assess the innovation efficiency along with the R&D capability and commercialisation performance. The results show that the innovation efficiency of the Chinese ICT industry shows a continuous decline due to the constraints of firms’ R&D capabilities. Similarly, the heterogeneity exists within the ICT industry; The four sub-industries has its own strengths, but they also exhibit high market efficiency and low R&D efficiency. Private companies show a higher level of R&D and commercialisation than SOEs in both stages.

Measuring human IT agility and firms' digitalization using POSET: evidence from Italy

PurposeThe aim of this study is to provide a detailed picture of the digitalization propensity and human IT agility of Italian SMEs, verifying whether companies are pursuing coherent and reliable choices for these dimensions and whether digitalization choices affect human IT agility.Design/methodology/approachUsing a POSET approach, this study constructs two nonaggregative multidimensional indicators of human information technology (IT) agility and firms' digitalization. The analysis is based on the microdata provided by ISTAT relating to 4,682 Italian manufacturing companies.FindingsThe results show the existence of a strong relationship between digitalization propensity and human IT agility. However, the analysis shows that companies are characterized by a low level of digitalization propensity and human IT agility. At the same time, the findings highlighted that the managerial choices adopted by companies appear to be inconsistent with respect to the two multidimensional indicators.Practical implicationsThis study has important implications for managers and policymakers by suggesting acting specific policies to promote a better implementation of digitalization that considers the key role of human IT agility.Originality/valueThis study contributes to the existing literature on organizational agility and digitalization by providing a detailed picture of the Italian manufactured SMEs. At the same time, the POSET approach allows to aggregate a lot of information in one or more indicators without neglecting the value of each dimension faced with the extreme heterogeneity of companies' profiles.

Paradoxical leadership and employee creativity: knowledge sharing and hiding as mediators

PurposeThis study aims to explore the mediating role played by the contradictory behaviour of knowledge sharing and knowledge hiding in the relationship between paradoxical leadership and employee creativity.Design/methodology/approachA survey was conducted with 276 employees working in information technology firms in India. “To assess the relationship between the constructs, single and parallel mediation analysis of structural equation modelling (SEM) and confirmatory factor analysis (CFA) have been performed”.FindingsThis study found that paradoxical leadership is significantly associated with employee creativity. Besides, it has also been found that knowledge sharing has emerged as a mediator that explains the relationship between paradoxical leadership and creativity, while knowledge hiding has not been a mediator to explain the relationship between paradoxical leadership and creativity among employees. According to the study, it was found that discouraging knowledge-hiding behaviour can increase employee knowledge sharing, which in turn fosters employee creativity.Research limitations/implicationsResearch has examined the relationship between paradoxical leadership and employee creativity in this paradigm, as well as the roles of knowledge sharing and knowledge hiding as mediators.Practical implicationsThe results of this study will help top management to create strategies for enhancing the relationship between a leader and their subordinates by using effective knowledge management strategies that foster employee creativity. Employee creativity would be facilitated effectively by the paradoxical leader who regulates knowledge-hiding behaviour among employees and promotes knowledge-sharing behaviour.Originality/valueThis study addresses the gap in prior research by investigating the role of paradoxical leadership in managing the contradictory behaviours of knowledge sharing and hiding and their impact on employee creativity. As the motivation for knowledge sharing and hiding are inherently distinct, leaders with paradoxical qualities foster a culture of openness and trust to encourage knowledge-sharing while discouraging knowledge-hiding behaviour. By controlling knowledge-hiding behavior empowers employees to make meaningful contributions to the organization’s success through effective collaboration and teamwork, allowing for a more innovative and creative workplace. Because preventing knowledge-hiding behaviour is a means to promote knowledge sharing and ultimately foster creativity in an organisation. Overall, this paper offers unique insights into the intricate dynamics of knowledge management and provides valuable recommendations for leaders managing employees exhibiting contradictory behaviours in the workplace.

Urban Geographies of Financial Convergence: Situating Indian Financial Centers across Global Production and Financial Networks

Recent advancements in the global production networks (GPNs) literature seek to better emphasize the role of finance by identifying where and how global financial networks (GFNs) intersect with GPNs. Financial centers (FCs) operate as key sites for articulating financial convergence, understood as the merging of financial and nonfinancial sectors enacted by cross-sectoral investments. Yet, how such entanglement both feeds on and impacts intercity networks, affecting metropolitan hierarchies, remains largely overlooked. Using a novel data set of 12,147 intersectoral, cross-border and domestic merger and acquisition deals involving finance and insurance firms throughout the period of 2000–20, this article unpacks the sectoral dynamics that underpin the intersection of GFNs with GPNs at the city level in India, the fifth largest economy in the world. Our longitudinal and multiscalar analysis demonstrates how uneven patterns of financial convergence, structured around the rising entanglement between finance and information technology (IT), have reshaped intercity networks and affected the landscape of FCs in India. If Mumbai remains India’s financial capital, Bangalore and New Delhi gained power in domestic and international flows, well ahead of other Indian cities. The article emphasizes how the IT firms, as recipients of transnational investments, and central governments, through direct interventions and state-hybrid investors, operate as key drivers in articulating GFNs with GPNs through intercity networks, changing urban geographies of finance, raising methodological and conceptual questions for future research on financial geography.

Understanding drivers of innovation in information technology companies using a grounded theory approach

PurposeInnovation is a process that enables organizations to sustain and prosper in a competitive business environment. This study aims to understand the key drivers of innovation within organizations from the lens of employees.Design/methodology/approachThis study uses a grounded theory approach based on semi-structured in-depth interviews of 20 professionals working in information technology (IT) firms. Judgmental sampling was adopted to select the respondents. Open coding, inductive analysis was conducted on the interview transcripts to generate relevant themes.FindingsEmerging themes indicate that innovation within organizations can be triggered as a response to client requirements or the employees’ inherent urge to innovate. Certain factors such as user engagement, formal organizational processes and practices, informal collaborative practices, the role played by experts and leaders and upskilling were seen to enable innovative outcomes within organizations.Practical implicationsFindings from this study will allow leaders to activate the identified drivers by designing suitable organizational processes and strategies to nurture a successful innovation culture within their teams.Originality/valueThis grounded theory-based study looks at drivers of innovation within IT organizations from the perspective of employees.

Monopolistic price-setting behavior of information technology firms

ABSTRACT Markups, which are when prices are greater than the marginal cost of production, have increased in the USA over the last decades. Our paper explores the differences in markups between Information Technology (IT) and non-IT firms. By doing so, we contribute to the understanding of the role of the IT industry in the increase in markups. We extend to De Loecker, Eeckhout, and Unger (2020), who find that markups of publicly traded firms have risen since 1980. They argue that no industry has systematically higher markups. We develop a novel firm-level classification method using natural language processing (NLP) to distinguish IT from non-IT firms. Our approach differs from the commonly used North American Industry Classification System (NAICS). Using our classification, we find that the increase in markup in the period since 1980 occurred in two separate episodes. In the first, from 1980 until 1996, firms recovered from the fall of markups in the 1970s. In the second episode, since 1996, markups of IT firms diverge enormously. Markups of IT firms surge from 47% in 1996 to 80% in 2018, while the markup of non-IT firms remains largely unchanged.

Business Intelligence (BI) in Firm Performance: Role of Big Data Analytics and Blockchain Technology

The analysis of the causes or drivers of the adoption of big data analytics and blockchain and their subsequent influence on firm performance has become a significant need as a direct result of the rapidly expanding popularity of business intelligence. The purpose of this research is to present a model that investigates the direct and indirect influence of business intelligence on firm performance through the mediating roles of the adoption of big data analytics and blockchain. The analysis is based on data collected from a representative sample of 387 employees from 12 Information technology (IT) firms operating in Croatia. The study investigates these connections using a structural equation modeling. The findings showed that business intelligence has a direct and significant influence on firm performance. In addition, business intelligence significantly and positively influenced the adoption of big data analytics and blockchain and, in turn, firm performance. Additionally, the adoption of big data analytics and blockchain technology signified and positively mediated the relationship between business intelligence and firm performance. Both the mediations were partial. Finally, the study also provides managerial implications, limitations and future directions.

Survival of the Fittest: The Long-run Productivity Analysis of the Listed Information Technology Companies in the US Stock Market

Abstract This article tries to estimate the operating efficiency among 30 years (1989–2018) in the information technology (IT) industry, where technologies are everchanging. The balanced panel data model of Kneip et al. is extended to an unbalanced panel data model for more generic applications. The estimation results based on listed IT firms in the US stock market provide evidence that the law of the jungle is applicable to the IT industry. The industry survivors, which often obtain and maintain market power through merger and acquisition, create economic moats by setting high barriers to entry to defend against risk and uncertainty and dominate the capital-intensive and technology-intensive IT industry. At the same time, the estimation results also demonstrate that the global IT industry is highly sensitive to technological waves and business cycles. Though thriving start-ups and spin-offs stimulate innovation and generate a richer diversity, economies of scale are still essential for sustainable development in the IT industry.

Cross-level effect of resonant leadership on remote engagement: A moderated mediation analysis in the unprecedented COVID-19 crisis

Drawing on the theory of intentional change, the study investigated the cross-level indirect effect of resonant leadership on the remote engagement of software professionals through psychological empowerment. We explored how mindfulness buffers the associations between resonant leadership, psychological empowerment, and remote engagement in the context of the Coronavirus Disease 2019 (COVID-19). We used a sample of 406 team members nested in 56 teams from 15 large-scale Indian information technology firms during the second wave of the COVID-19 pandemic. Our empirical strategy is based on hierarchical linear modelling. The findings revealed that the cross-level effect of resonant leadership on work engagement through psychological empowerment is the strongest when subordinates show a lower degree of mindfulness. To the best of our knowledge, this is the first study to unravel the mechanisms underlying the relationship between resonant leadership, psychological empowerment, work engagement, and mindfulness by empirically validating cross-level mediation and moderation. Moreover, the findings add a new lens to the theory of intentional change through the cross-level effects of resonant leadership on the proposed criterion variables under the bounded conditions of low-intensity mindfulness of subordinates.

Strategies to Retain Employees in the IT Industry: The Case In India

Although the Information Technology (IT) sector accounts for the highest contribution to Gross Development Product in India, it has high employee turnover. This turnover is a waste of investment and detracts from organizations’ knowledge and experience pools. Person organization (PO) fit theories posit that when people are hired by and for organizations (not just individual jobs), they are less likely to quit. This study examines the benefits provided by IT firms to retain their employees and how these benefits’ effectiveness vary by designation and firm. It does so by employing the ‘work environment congruence’ approach to PO fit. Moreover, it proposes how to build a strategic model of the mix of benefits for retaining staff at different position levels (designations) in the firm. Findings show that preferred benefits differ by designation. For all factors except location, organization does not play an important role in retention, but designation impacts it in all the factors. Keywords: Retention strategies, Retaining employees, Information technology, Indian IT industry.

Strategic Management and Performance of Information Technology Firms in Nigeria

The urgent need for diversification in the Nigerian economy has raised concerns in other sectors. The information technology (IT) sector remains the least developed despite increased government attention to IT and the need to encourage young graduates in the IT sector. Little seems to have been achieved so far; hence, this study assessed the influence of strategic management (SM) on the operational performance of IT firms in Nigeria. A sample of 195 managers of IT firms across the country of Nigeria were selected for this current study, and they were selected using a convenient sampling technique. The Pearson product correlation technique was used in analysing the data. It was found that there is a correlation between SM and the operational performance of IT firms in Nigeria. The study concludes that the presence of a sound SM would guarantee the improved operational performance of IT firms in Nigeria. It is recommended that IT firms’ managers be willing to come up with a detailed strategic plan and implement it to conduct regular evaluation and control their own strategy, as it is useful towards ensuring that they gain a competitive edge.

Examining the Benefits and Drawbacks of Remote Work in the Information Technology Industry

The surge in remote work at global level has led to growing interest in the successful implementation and smooth transition to remote work. Both managers and workers find themselves in an exceptional circumstance that necessitates comprehensive modifications to the structure of contemporary office environments and the concept of office work in the modern day. Despite the increasing prevalence of remote work, the majority of individuals continue to engage in telecommuting for only a limited number of days each week, with the other days being spent in a traditional office setting. Information technology (IT) is an essential element within the domain of virtual work. The adoption of remote work facilitates employees in carrying out their duties from a non-traditional workplace environment. This technique offers leaders the capacity to efficiently administer and supervise the activities of the organization. Moreover, it enables efficient and uninterrupted exchange of information among individuals inside the hierarchical framework of the company. The construction of a skilled and efficient communication channel between managers and employees is a critical aspect that exerts a substantial influence on organizational success. Remote employment in the Information Technology (IT) sector is subject to a multitude of circumstances, encompassing both internal and external influences. These characteristics exert a substantial influence on the degree to which remote work is viable and effective within IT firms. The efficacy of remote work in the IT sector hinges upon a meticulous evaluation of these variables and the formulation of tactics that effectively tackle the distinct obstacles and advantages inherent in remote work setups. Flexibility, adaptability, and continuous evaluation are necessary for the efficient implementation and management of remote work within the IT industry. The main aim of this research is to examine the benefits & drawbacks of remote work in IT industry.