Information Technology Firms Research Articles

Who Benefitted From the PyeongChang Olympic Announcement? Evidence From the South Korean Stock Market

Understanding the market effects of Olympic host announcements is popular in academic research. Contrary to prior studies, announcing PyeongChang as the 2018 host had a positive effect on South Korea's Stock Market, with conservative estimates suggesting a peak of +3.8% during the 15 trading days post announcement (an increase equivalent to $34.962 billion). The degree to which firms benefitted varied by industry and lifecycle stage. Older and lower-growth financial and information technology firms saw larger abnormal returns compared to other firms. These findings suggest that academics and investors pay greater attention to idiosyncratic price adjustments to systematic market shocks.

ANALYSIS OF THE CAPITAL STRUCTURE FORMATION: THE CASE OF GEORGIAN IT COMPANIES

Any country’s economy benefits significantly from the sector of information technologies. As the data demonstrate, the global information technology market has not only remained stable, but is expected to expand in 2021 due to changes in social life, employment, and education caused by the global COVID-19 virus pandemic. While information technology is vital to any country’s advancement, its growth in developing countries is being hindered by lack of skilled labour force, underdeveloped market infrastructure, insufficient financial mechanisms to stimulate innovative projects, and weak legislative framework. IT companies are characterized by a high degree of risk and uncertainty, a reliance on external sources of financing in the early stages, and an unattractiveness to conservative investors. In this regard, the issue of capital formation for innovative companies in the IT sector to ensure their effective functioning becomes especially important. The purpose of this study is to analyze the formation of financial sources and capital structure of Georgian IT companies based on the analysis of 50 IT companies in Georgia. The analysis is based on the usage of the main financial ratios of companies’ performance, taking into account the specifics of the IT sector companies. The study revealed that the capital structure of Georgian information technology firms is more consistent with the Pecking order theory, with almost no long-term loans and a small share of short-term loans. Equity and retained earnings are the primary sources of funding for IT businesses. This was supported by the legal exemption of corporations from income tax payments in the case of net profit non-distribution.

Evaluating the role of scrum methodology for risk management in information technology enterprises

This study aims to investigate the relationship between Scrum framework and risk management processes in Malaysia. Companies discuss the management based on a concerned business scale and the influence risk management in Malaysia Information technology projects success. This research is targeting Information technology firms and technology projects. Were researched through guarantee inside and out comprehension of the postulation foundation. In the outcome segment, the author influences a few proposals for the case to small-scale organizations to actualize ventures and to develop risk management successfully. The phases of risk management, in particular the step of risk detection, have a detrimental impact on project performance. Furthermore, risk control has its own risks as a mechanism. This makes it impossible to know if risk management is an appropriate approach in the IT production process for managing and minimizing risks. The study shows the effect of risk management in IT businesses is utilized in the Scrum

Micro-Geographies of Information and Communication Technology Firms in a Shrinking Medium-Sized Industrial City of Ostrava (Czechia)

We aimed to explain the spatial distribution of information and communication technology (ICT) firms in the city of Ostrava as an example of a medium-sized, shrinking, polycentric industrial city. The primary research question was to what extent micro-geographic location factors affect the current spatial clustering of ICT firms in polycentric cities characteristic by relatively weak urbanization economies and mostly routine character of ICT activities. We analyse and test the effects of the urban form at the level of urban blocks and individual buildings (considering their height, technical condition, age and dominant function) on the clustering of ICT firms of various sizes and ownership statuses. The inquiry was based on a detailed field mapping (using ArcGIS Collector) of ICT firms and physical/functional characteristics of the buildings and their immediate surroundings. ICT firms are significantly spatially concentrated in the historic city centre and inner city. Spatial patterns of ICT firms focused on less knowledge-intensive, routine and/or lower value-added functions do not differ fundamentally from innovative firms developing new products. Preference of denser, walkable, mixed-use neighbourhoods in urban cores/inner cities can be found in the group of firms focusing on routine functions: rather for larger than for smaller firms and domestic than foreign-owned firms.

Can a technology firm desire too much of a good thing? The double-edged sword effects of technology orientation on performance

PurposeThis paper aims to investigate the underlying mechanisms that come into play in the relationship between technology orientation (TO) and performance in technology firms. In doing so, this paper explores how different levels of TO affect firm innovativeness, how different levels of firm innovativeness affect performance and the moderating role of risk-taking propensity in the relationship between innovativeness and performance.Design/methodology/approachData were collected from 112 information technology firms. Control variables include firm size and age and industry effects. The model was tested using PLS-based SEM.FindingsResults show that in technology firms, innovativeness plays a mediating role in the relationship between TO and firm performance, the relationship between TO and firm innovativeness is curvilinear, the relationship between innovativeness and performance is curvilinear and risk-taking propensity moderates the curvilinear relationship between innovativeness and performance.Originality/valueThe shape of the relationships in the mediating paths between TO, innovativeness and performance, is curvilinear (inverted U-shaped). Managers in technology firms focused on bolstering the TO and/or innovativeness should be cognizant of the fact that beyond a certain level, they might actually be doing more harm than good. Additionally, managers seeking to reinforce the relationship between innovativeness and performance need to be sensitive to the role that risk-taking propensity plays in this relationship.

Impact of perceived organizational support on employee performance in IT firms – a comparison among Pakistan and Saudi Arabia

PurposeThe purpose of this paper is to evaluate the influence of perceived organizational support on employees’ performance in information technology (IT) firms in Pakistan and Saudi Arabia. Organizational support is critical as it ensures support given by the organization to workers and to complete one’s job proficiently and effectively.Design/methodology/approachData were collected from IT firm employees through a self-administered questionnaire survey where a total of 400 questionnaires were distributed, i.e. 200 in each country’s IT firms. A total of 383 completed questionnaires were received (190 from Pakistan and the remaining 183 from Saudi Arabia) representing a response rate of 95%. The hypothesis was tested using confirmatory factor analyzes and direct relations were confirmed using AMOS v24.FindingsThe results indicate that perceived organizational support and affective commitment have a significant positive impact on employee performance. Findings of the study show that perceived organizational support and affective commitment directly and significantly correlated (r = 0.439**; p < 0.05) (r = 0.489**; p < 0.05) with employee performance. On other hand, results of structural equation modeling indicate that perceived organizational support and affective commitment have a significant and positive impact (ß = 0.284; p < 0.01) and (ß = 0.370; p < 0.01) on employees’ performance. Moreover, affective commitment partially mediates the relationship between perceived organizational support and employee performance.Research limitations/implicationsThe outcomes are not generalized, as the researcher analyzed working employees in the IT firms in Saudi Arabia and Pakistan. The relationship between perceived organizational support and employees’ performance may be checked in a longitudinal study. If all items are considered because of the ambiguity of human feeling and acknowledgment, it is hard to precisely assess employees’ performance and their needs. This research proposes a straightforward and handy model that supports managers to feature the most powerful factors in building up their employees’ performance.Originality/valueThis study proposes managers to give chances to proficient advancement, improved occupation and satisfying the necessities identified through deference, mindfulness and endorsement. Furthermore, they ought to make more good working conditions, for example, preparing chances to support workers in their wants for self-improvement and accomplishment. The research additionally recommends recording the unmistakable standard operation procedure to clarify the understanding of the employees. In addition, managers ought to invest sensible energy with their front-line employees through socialization and training. These efforts could limit fatigue work, enhance organizational duty and performance.

Happiness at work: a multi-criteria decision-making approach

PurposeResearchers have strived to identify the factors enhancing happiness at work (HAW), and the causal relations among the enablers of happiness remained underexplored. Therefore, this study aims to map and prioritize the causal relation structures of enablers of HAW.Design/methodology/approachData were collected from key representatives of information technology (IT) firms located in India. A framework based on the cause and effect relationship among enablers of HAW is proposed, and to establish this causality, the decision-making trial and evaluation laboratory (DEMATEL) technique was applied.FindingsThe findings indicate five out of 12 enablers as causal, namely, transformational leadership, authentizotic work climate, person–organization work fit, organizational virtuousness and meaningfulness in work.Originality/valueHuman resource managers, organizational policymakers and scholars will gain greater understanding through this causal framework of enablers of HAW. Knowledge and facilitation of these enablers will aid in nurturing a happy workplace.

Consequences of Mergers and Acquisitions on Firm Performance: A Sector-Level Study of Public Listed Companies in China

As the motives of mergers and acquisitions (M&amp;As) are different across industries, this study examined the synergy effects of technological gains and capital intensity on the operating performance of the acquiring firms after M&amp;As. The sample comprised 434 completed M&amp;As initiated by Chinese firms listed on the Shanghai and Shenzhen Stock Exchanges with 2,170 observations over the years 2012 to 2016. On average, the firms performed better after M&amp;As. The results show that the operating performance of public health, information technology, telecommunication and financial service firms within the high-technology sector increased after M&amp;As. This suggests that high-technology firms can benefit from M&amp;As through a more extensive knowledge base and financial synergy. We also found that good governance characterized by board independence affects firm performance positively. Therefore, the acquisition of technology through M&amp;As could be an essential corporate growth strategy in the Chinese capital market, which is transforming from a state-controlled economy to a more market driven one. The findings provide useful insights to both corporate players and policy-makers on the types of M&amp;As that stand higher chances to generate positive outcomes and those that need extra measures and further scrutiny to prevent inefficient allocation of resources.

Predicting Job Burnout and Its Antecedents: Evidence from Financial Information Technology Firms

Job burnout is a continuing concern for human resource management and mental health at work, as it affects employee productivity and well-being. The present study conceptualizes Kahn’s job engagement theory to predict job burnout through a latent growth model. To test the proposed model, data were collected by surveying 710 employees of R&amp;D departments of financial information technology firms of Taiwan at multiple points in time over 6 months. Therein, this study found that as employees perceived more ethical leadership, corporate social responsibility, and self-efficacy at Time 1, they were more likely to show increases in job engagement development behavior over time. Further, increases in job engagement development behavior demonstrate their positive relationship with the decrease in job burnout development behavior over time. These findings highlight that the potential dynamic consequences of organizational behaviors can lead to employee career development and occupational mental health.

Effectiveness of Top-Tier Information Technology Software Service Companies: A Multi-Component Perspective

ABSTRACT Information Technology (IT) firms are structured internally into various components to provide customized services to their customers. Owing to the significance of internal structure, the objective of the paper is to study quarterly efficiency of five IT software companies (Infosys, Tata Consultancy Services (TCS), Wipro, Cognizant and Accenture) based on components like FSI (Banking, Financial, Securities, and Insurance), MFG (Manufacturing), RCL (Retail, Consumer Packaged Goods, and Logistics), ERU (Energy, Utilities and Resources), CME (Communication, Media, and Entertainment) and LSH (Life Sciences and Health Care Services) using multi-component data envelopment analysis. Results obtained establish that Infosys is the most efficient company followed by Cognizant and Accenture while TCS and Wipro are inefficient in some of the components. Empirical results show that the companies performed efficiently in FSI, RCL and CME components whereas ERU, LSH and MFG components require improvement. Further, the geography-wise efficiency trends indicate that the selected companies are more efficient in the rest of the world as compared to the European and North American regions. These findings will help IT firms in identifying their inefficient components and provide guidance in formulating strategies for improvements. Moreover, other domestic and foreign firms may also learn from the findings of the study.

Exploring the antecedents of entrepreneurship success in information technology firms in Nigeria

ABSTRACT We examine four antecedents of IT entrepreneurship success in Nigeria. Particularly, two of the investigated antecedents are general human capital factors (i.e., having experience with entrepreneurial parents and business training) and the other two (IT education and spirituality) are specific to IT entrepreneurship and the Nigerian context. In a quantitative study of 167 IT entrepreneurs in Nigeria, we found that the general factors are more important determinants of success among IT entrepreneurs in Nigeria than the specific ones. There is corroboration between our findings and the developed economy literature which provides ample evidence of a positive relationship between having experience with entrepreneurial parents and entrepreneurship success. Before our findings, limited knowledge existed on the complexity of this orthodoxy in developing markets such as Nigeria. Our result did not show any significant correlation between formal education in the IT field and IT entrepreneurial success. Our paper contributes to the discourse on the antecedents of entrepreneurship success by focusing on IT entrepreneurship from a developing country context. This is particularly critical when one considers the importance of IT entrepreneurship towards economic diversification in Nigeria. The unique theoretical contribution of our paper lies in its introduction of the specific antecedents (constructs), IT-education and spirituality, even though they were not found as significant determinants of entrepreneurship success in the Nigerian context. Our findings imply that national entrepreneurial policy should be tailored to exploit the inherent benefits of experience with entrepreneurial parents and effectively blend it with factors such as business school education and other forms of relevant training in the areas of social competence.

Digitalization of Migration Management in Malaysia: Privatization and the Role of Immigration Service Providers

This paper conceptualizes the digitalization of foreign workers’ management as a gradual move by the state to phase out intermediaries and to reduce undocumented migration in Malaysia. The privatization of digital migration management to information technology (IT) firms is necessary in line with the centralization of all immigration functions. However, privatizing digital migration management has subject the employers and foreign workers to new non-state actors (IT firms and immigration service providers) while gradually eliminating the existing non-state actors (private agencies). The main theoretical question of the privatization of migration management concerns the role of immigration service providers as a result of digitalization. Using Malaysia as its case study, this paper highlights the need to re-conceptualize the role of service providers as “paper shifters” in providing front-line services, collecting agent services, and post office services and thus facilitating the online platform’s operations. This paper concludes that privatizing foreign worker management has not achieved the objectives of digitalization in reducing undocumented migration, eliminating intermediaries, improving efficiency, and reducing recruitment cost. The state’s privatization framework based on the employer-pay-model has resulted in the commercialization and monopolization of the foreign worker industry. In order to achieve the benefits of digitalization, the process should be done by the government without any form of privatization. The analysis draws upon official documents, parliamentary debates, statements by trade associations and civil societies, newspaper articles, and secondary literature. Based on the media discourse analysis of online news media and document analysis of official publications, this thought piece article explores immigration service providers’ role in Malaysia’s migration management.

Evaluation of perceived benefits and employee satisfaction through knowledge management practices

PurposeThis study aims to identify the key contributing factors of knowledge management (KM) practices with respect to an employee benefit. The research is designed to gain insight into the KM practices of Indian information technology (IT) firms and evaluate its effects on employee perceived benefit (EPB) and employee satisfaction (ES).Design/methodology/approachThis study focuses on the cause and effect relationship between the variables. In this research study, a structured questionnaire is administered and accumulated responses from executives, software developers and knowledge managers from five IT firms with the help of google form. The sample size was 339 for this study. Confirmatory factor analysis and partial least square (PLS)-structural equation modeling have been used to analyze the data with the help of SMART-PLS software.FindingsThe well-fitted model describes the importance of KM practices with respect to increasing employee benefit and satisfaction. The hypothesized model is empirically investigated and it is also supported by the analysis. The KM practices have significant effects on EPBs. Employee benefits have a significant effect on ES. The result shows that the benefits of KM practices are more intended toward the sources of motivation where they can increase their capability with the help of KM practices.Research limitations/implicationsBenefit leads to the motivation and satisfaction of employees. The work itself can be a highly motivating dimension with the help of proper KM practices. The managers’ prime responsibility is to focus on collaborative work with regularizing the exchange of knowledge, where new knowledge can be created and, do better for the organization.Originality/valueThis research study offers a new direction of motivation to work. The employee can be highly motivated if he can be benefited from the work itself. This study gives an approach to satisfy the employee with the help of KM practices. Perceived benefit is considered as an essential element for this study.

Examining the role of knowledge sharing on employee performance with a mediating effect of organizational learning

PurposeThe current world of knowledge has a demand for intellectual capital to position or prosper any business. Organizations are constantly looking for developing a pool of talent to gain a competitive advantage. The purpose of this study is to find out the contribution of knowledge sharing that enhances the performance of the employees. This study also exhibits a model for measuring the performance of the employee.Design/methodology/approachThis study is based on the primary and secondary sources of data. This paper has collected 354 samples from the different information technology (IT) firms located in India. The data were analyzed through statistical package for the social sciences-23 and analysis of moment structures. Path analysis has been conducted to examine the independent and mediating effects on the dependent factor.FindingsThis study confirms the conceptual model with the data. The key contributors are organizational intelligence (OI), organizational learning and knowledge sharing and organizational culture. The performance of the employee is primarily based on organizational learning. OI, knowledge sharing and organizational culture are the major factors that create an environment for organizational learning.Practical implicationsThe findings suggest that organizational learning stimulates the effect of knowledge management practices on employee performance. Apart from this OI affirms the learning culture for IT firms.Originality/valueDrawing from the different theories, this is the first study where the role of OI, organizational culture and knowledge sharing simultaneously aligned and shows the effect on employee performance with the mediation role of organizational learning.

Firm Size, Corporate Debt, R&amp;amp;D Activity, and Agency Costs: Exploring Dynamic and Non-Linear Effects

This paper empirically investigates firm-specific determinants of agency costs, a relatively new and unexplored area in corporate finance. We estimate dynamic agency costs models, linking debt, firm size, and R&D activity to agency costs for a panel of U.S. information and communication technology (ICT) firms over 1990-2013. We adopt the Blundell and Bond (1998) two-step system GMM technique, which explicitly accounts for persistence, endogeneity, and unobservable firm heterogeneity. We provide the first evidence that our inverse proxy for agency costs, namely asset turnover (Ang, et al., 2000), exhibits an inverted U-shaped relationship with debt and a U-shaped relationship with firm size and R&D activity. These findings imply that agency costs experience a minimum value (in case of debt) and a maximum value (in case of firm size and R&D activity) and, therefore, that agency costs are higher at both low and high levels of debt, and lower at both low and high levels of firm size and R&D activity. We find that the level of debt of the average firm in the sample falls below the level that minimizes agency costs. We also document that, consistent with the agency literature, short-term debt provides an additional effective monitoring mechanism to alleviate agency costs. Our findings reveal that agency costs are dynamic in nature, mean-reverting, and persistent over time. This notion confirms the Florackis and Ozkan (2009) conjecture that managers behave as though an optimal level of agency costs exist that they pursue. Finally, we find a positive association between firm profitability and agency costs and a negative association between agency costs and firm growth. Extensive additional analysis confirms the robustness of our results.

Role of ethical organisational culture on employee job satisfaction: an empirical study

The aim of this study is to understand impact of ethical culture of information technology (IT) organisation on employee job satisfaction. In this study, we have identified the constructs of ethical culture of IT organisations on the basis of review of literature and proposed a model indicating the relationship between the identified constructs and job satisfaction. The study is done especially for employees of IT organisations in Pune, India, based on a survey of 124 employees working in IT firms. We have analysed the impact of organisations' ethical culture constructs namely equal opportunity, fairness in promotion process, impartiality in grievance handling, ethical leadership, and ethical policy on employee job satisfaction. Results of the analysis revealed that ethical policy, impartiality in grievance handling, and fairness in promotion process have significant impact on job satisfaction of the employees, whereas equal opportunity and ethical leadership has no significant impact on job satisfaction of employees.

Financial Innovation in the 21st Century: Evidence from U.S. Patents

We develop a unique dataset of 24 thousand U.S. finance patents granted over last two decades to explore the evolution and production of financial innovation. We use machine learning to identify the financial patents and extensively audit the results to ensure their reasonableness. We find that patented financial innovation is substantial and economically important, with the number of annual grants expanding from a few dozen in the 1990s to over 2000 in the 2010s. The subject matter of financial patents has changed, consistent with the industry’s shift in revenue and value-added towards household investors and borrowers. The surge in financial patenting was driven by information technology firms and others outside of financial sector, which collectively accounted for 69% of the awards. The location of innovation has shifted, with banks moving this activity from regions with tight financial regulation to more permissive ones. High-tech regions have attracted financial innovation by payments, IT, and other non-financial firms. Turning to the source of these ideas, while academic knowledge remained associated with more valuable patents, citations in finance patents to academic papers, especially in those by banks, fell sharply.

Financial Innovation in the 21st Century: Evidence from U.S. Patents

We develop a unique dataset of 24 thousand U.S. finance patents granted over last two decades to explore the evolution and production of financial innovation. We use machine learning to identify the financial patents and extensively audit the results to ensure their reasonableness. We find that patented financial innovation is substantial and economically important, with the number of annual grants expanding from a few dozen in the 1990s to over 2000 in the 2010s. The subject matter of financial patents has changed, consistent with the industry’s shift in revenue and value-added towards household investors and borrowers. The surge in financial patenting was driven by information technology firms and others outside of financial sector, which collectively accounted for 69% of the awards. The location of innovation has shifted, with banks moving this activity from regions with tight financial regulation to more permissive ones. High-tech regions have attracted financial innovation by payments, IT, and other non-financial firms. Turning to the source of these ideas, while academic knowledge remained associated with more valuable patents, citations in finance patents to academic papers, especially in those by banks, fell sharply.

Proposed Competencies Required for Construction Project Managers in Afghanistan

The nature of projects is always dynamic, complex, and different from each other. Project lifecycle is along with risk, changes, uncertainty, and even sometimes not succeed. Therefore, to bridge these gaps in Afghanistan context and to achieve the project goal within budget, time, scope, and quality. All projects-oriented organizationssuch as construction firms, consultancy firms, and information and communication technology (ICT) firms, need project managers with leadership and management competencies or skill sets to complete projects successfully. Leadership and management competencies are combinations of knowledge, skill sets, leadership styles, including technical, emotional, behavioral abilities which elaborated in this paper. These traits are compiled and analyzed through a comprehensive study of related research papers, standards, and relevant institutions for project management, that reflect the intent of this paper.

How Does the Positioning of Information Technology Firms in Strategic Alliances Influence Returns to R&amp;D Investments?

Because software is fungible, has low marginal replication costs, and requires relatively high levels of initial investment to develop, understanding how IT-producing firms protect and leverage value from their research and development (R&amp;D) investments is important. We examine how the positioning of IT-producing firms within their networks of strategic alliances moderates profits from R&amp;D investments. We posit that alliances with IT-consuming firms generate relation-specific rents that, in turn, protect the value of R&amp;D investments by making software innovations difficult for rivals to appropriate. Among IT-producing firms, we make a distinction between software consulting and services firms and software package-product firms. Our analyses of 464 IT-producing firms for the 14-year period 1996-2009 suggest that IT-producing firms’ returns on R&amp;D investments increase with alliance ties to IT-consuming firms. We also find that alliances with IT-consuming firms have a more beneficial effect on R&amp;D investment returns for software consulting and services firms than for software package-product firms. Our findings yield nuanced insights into how IT-producing firms should position themselves within a network of alliances with IT-consuming firms. We discuss implications for research and practice.