Superior Information Technology Research Articles

Student Independent Training at the Merdeka Campus Study at the Merdeka Campus

This service examines the role of students in Merdeka Learning Kampus Merdeka (MBKM) activities in order to create creativity, innovation, superior information technology in creating competitive advantage and new learning patterns in exchange of campus learning with a new atmosphere. The government's policy of creating MBKM encourages students to develop themselves, new ideas, a new atmosphere can form a new academic atmosphere as well as knowledge and skills that can motivate students to learn and share knowledge to enrich knowledge and creative ideas. This dedication activity was taken from 300 students who were active in the Indo Global Mandiri University accounting study program. The results of community service activities show that students who take part in the MBKM program can provide considerable benefits such as competence, comprehension, innovation challenges, soft skills and hard skills, skills using competent hardware and software. Students are expected to be able to create new ideas in broader socialization of MBKM such as apprenticeships at companies and exchange of learning between campuses that already have an MOU

How information technology capability influences organizational agility: empirical evidences from Indian banking industry

PurposeThe purpose of this paper is to highlight a precise investigation of the relationship between information technology (IT) capability and organizational agility along with the moderating impact of environmental factors on this association.Design/methodology/approachPre-tested structured questionnaires were administered during a matched-pair field survey to collect primary responses from 300 business and IT personnel working in various public and privately owned banking groups functioning in India. The structural equation modeling approach has been used for data analysis.FindingsThe two-folded research findings are first, IT capability enables organizational agility (studied as business process and market responsive agility), while IT capability has more effect on market responsive agility. Second, the environmental factors (studied as environmental diversity and hostility) possess a significant effect on the IT-agility relationship and, thereby, suggest that a more diverse and less hostile environment is required for the firms to build up superior IT capability for realizing enhanced agility.Originality/valueThe authors have studied IT capability as a first-order factor, organizational agility and environmental factors as second-order factors and by meticulously examining their critical dimensions this study greatly contributes to the existing IT-agility literature. The derived inferences provide various implications for the bank and IT managers to emphasize on superior IT capability for generating enhanced organizational agility.

Pengaruh Kapabilitas Teknologi Informasi Terhadap Kinerja dan Nilai Perusahaan

The main objective of this study is to investigate the impact of information technology (IT) capabilities on firm performance and firm value. In this study the firm performance is measured by ROA and ROS, while the firm value is measured by Tobins Q. The matched sample comparison method is used to select the sample. In this regard, there are two groups of sample, which are the firms with superior IT capabilities and the firms that have not superior IT capabilities (as a control group). The firms that have been awarded by TOP IT & Telco Award were classified as the firm with superior IT capabilities. By using independent t test, it is found that there is no difference in firm performance and firm value between the firms with superior IT capabilities and the firms in control group. Therefore, it is found that there is no relationship between IT capabilities and firm performance and firm value

Revitalization as protection instrument of cultural heritage of libraries

Superior information technology and global network coverage - the Internet, have raised the issue of sustainability and library facilities in the 21st century. Architects across the globe endeavor to examine and improve the traditional concepts of designing a library in accordance with the complex needs of the contemporary society. In this paper, the tools for development and protection of the library buildings in the information age are presented. The goal is to shed light on the complex process of revitalizing the libraries that today, more than ever, are fighting for sustainability. In this endeavor, an analysis of the case study of some of the world-renowned libraries will be of particular importance.

The impact of client information technology capability on audit pricing

This paper explores the question: “How does a client's information technology (IT) capability influence audit pricing?” Company data for the years 2004 through 2012 are employed. Firms appearing on the InformationWeek 500 (IW500) annual list of U.S. organizations with superior IT functions serve as a proxy for companies with superior IT capability. Our findings suggest that companies with superior IT capabilities incur higher levels of audit fees. In addition, as client size increases, the audit fees of firms with advanced IT capabilities increase at a greater rate than firms without such capabilities. These findings contrast with prior research by Chen et al. (2014) that found in the immediate post-Sarbanes-Oxley Act (SOX) period for the years 2004 through 2007, client IT capability reduced audit fee increases. In addition, we replicate the Chen et al. (2014) results and find that IT capability did not influence audit fee increases during the subsequent recession and recovery periods. Further, superior capability clients see smaller audit fee increases when exogenous shocks such as SOX regulations occur. These results suggest a revised interpretation of Chen et al. (2014) may be warranted. This study contributes to the literature by providing a more complete picture of how a client's IT capability affects audit fees.

The Impact of Client Information Technology Capability on Audit Pricing

This paper explores the question: “How does a client’s information technology (IT) capability influence audit pricing?” Company data from 2004 to 2012 is employed. Firms appearing on the InformationWeek 500 (IW 500) yearly list of U.S. organizations with superior IT functions, serve as a proxy for companies with superior IT capability. Our findings suggest that companies with superior IT capability incur higher levels of audit fees. These findings contrast with prior research by Chen et al. (2014) that found in the immediate post-Sarbanes-Oxley Act (SOX) period, 2004-2007, client IT capability reduced audit fee increases. We replicate the Chen et al. (2014) results and find that the observed effect attenuated during the subsequent recession and recovery periods. These results suggest a revised interpretation of Chen et al. (2014) may be warranted. It appears that clients with superior IT capability incur on average higher levels of audit fees than companies with less advanced IT; they are better positioned to adapt to external shocks, such as, SOX regulations. Therefore, these clients also see smaller audit fee increases when these exogenous events occur. This study contributes to prior literature by providing a more complete picture of how client IT capability affects audit fees.

The impact of different contract structures on IT investment in logistics outsourcing

The information technology (IT) capabilities of third-party logistics (3PL) providers are important for manufacturers because they enable manufacturers to optimize their operations. However, there exists an “IT gap,” or discrepancy between manufacturers' expectations and their satisfaction with the IT capabilities of 3PL providers. Previous studies suggest that 3PL providers' IT investments are critical and necessary for developing superior IT capabilities, which, in turn, contribute to firm performance. To motivate 3PL providers to invest in developing their IT capabilities and, thus, reduce the “IT gap,” we analyze a 3PL provider's IT investment, as well as its impact on supply chain profit, under four logistics outsourcing contract structures: a fixed-price contract, a contract contingent on the on-time delivery rate, a profit-sharing contract, and a revenue-sharing contract. We find that the 3PL provider's IT investment is higher under the contingent and profit-sharing contract structures than it is under the other two contract structures. The 3PL provider's IT investment under the contingent contract is no more than that of the profit-sharing contract. Additionally, we find that the contingent and profit-sharing contracts result in a higher profit within the supply chain than the other two contract structures do, and that the supply chain profits under contingent and profit-sharing contracts are dependent on the 3PL provider's IT investment. The results provide 3PL buyers and providers guidance in terms of using contract structures to motivate IT investment in logistics outsourcing.

The Impact of Information Technology on New Product Development Performance

Many managers expect a substantial impact of digitization on new product development (NPD) as it is an information‐intensive business process. Therefore, a better understanding of how information technology (IT) might improve the NPD process is important for both theory and practice. Drawing on the IT business value literature, this study develops a comprehensive conceptual model to investigate empirically how IT and non‐IT organizational antecedents translate into NPD IT capabilities and competences and how these are related with NPD performance. Based on survey data from German NPD managers, this study offers several insights. First, it shows that the development of superior NPD IT capabilities and competences depends on the ability to acquire and deploy suitable IT (i.e., firm‐level IT capabilities) and on appropriate strategic, structural, and cultural conditions ensured by a strong top management focus on NPD IT (i.e., executive champion for NPD IT). This study hence contributes empirical evidence to the NPD and the IT business value literature by expanding research on complementary resources. Second, this study addresses limitations regarding the conceptualization of NPD IT capabilities and their relationship with further sources of competitive advantage arising from NPD IT tool usage by considering both the effectiveness and the frequency of usage as well as the relationship between both. Third, this research updates the measurement of NPD IT tool usage effectiveness (i.e., IT leveraging competence) to account for technological developments. Moreover, this study reveals that the effectiveness of NPD IT tool usage is positively associated with NPD performance. It also highlights that the dissemination of IT tools does not directly increase NPD performance, but that NPD IT tool use frequency is an important antecedent of IT leveraging competence. For managers, this paper offers empirical evidence that firm‐wide IT capabilities and a focus on NPD IT are important predictors of NPD performance.

Assessing the impact of information technology capability on firm profitability and market value in emerging economies: a study from India

Investments in information technology (IT) form a substantial portion of capital expenditure of firms, and organisations are constantly looking for ways in which IT can be used to attain sustained profitability. However, there is scarcity of empirical studies that have examined whether IT can provide sustained competitive advantage to firms in major emerging economies such as India. This study seeks to empirically test whether superior IT capability can provide sustained profitability to multinational corporations and domestic firms in India. To this end, the financial performance of 94 firms from 15 different industry sectors has been analysed to determine whether superior IT capability of these firms led to improved profitability. Our results show that superior IT capability does not provide competitive advantage to firms operating in India. Another important finding of this research is that in recent years stock markets have given higher valuation to firms with superior IT capability despite the fact that superior IT capability is not associated with improved profitability. This finding has direct implication for investors and financial analysts who still perceive that IT capability can provide higher profitability to firms.

Impact of information technology capability on financial performance during the period of economic downturn: the case of Chinese listed companies

Several earlier studies validate the positive impact of information technology (IT) capability on firm performance during economic expansion in developed countries. Given sustained IT investments and rapid adoption of various IT in developing countries (e.g. China) in the 2000s, there is a need for new research to test whether prior findings still hold true with up-to-date data from a period of economic downturn in developing countries. Thus, this study attempted to reexamine the linkage between IT capability and financial performance during recent financial crisis in 2008, especially in China context. Our results show that during the period of financial crisis, Chinese firms with superior IT capability tend to outperform a sample of control firms on average profit ratios but not on cost ratios, even after adjusting for prior performance. We also find that the profit performance effects of IT capability can be sustained over a long period of economic downturn. This study contributes to research by extending a different context (i.e. China) from developed countries with new data from economic downturn and providing new finding to reconcile prior research.

Exploring the capital market effects of IT capability: the case of ownership structure

Grounded in the debate on the business value of information technology (IT), research on IT capability is an important research stream since many years. Several studies highlight the strategic importance when studying the effects of IT capability on performance and other outcomes. Although firm-level effects are well understood, the effects on capital markets, especially investors, have rarely been explored. We fill in this gap and extend current research on IT business value by arguing that due to the multiple benefits of IT capability for organizations, institutional investors recognize and value a firm’s IT capability as an intangible asset and incorporate it into their investment decisions. We make use of the annual InformationWeek 500 ranking and accounting data to analyze the effect of IT capability on firms’ ownership structure. Our results provide evidence that firms possessing a superior IT capability are held by a higher share of long-term oriented institutional investors that trade less frequently. These findings are robust to alternative sampling strategies, industry differences, and the consideration of firm performance effects. We outline directions for further research and practical implications for executives and investors.

Does Information Technology Reputation Affect Bank Loan Terms?

The aim of this study is to provide a systematic analysis of the effect of information technology (IT) reputation (i.e., the accumulation of public recognition of the quality of a firm’s IT capability) on bank loan contracting. More specifically, we are interested in the effect of IT reputation on the interest rate charged, collateral requirement, covenants, and number of lenders in syndicated loans. To study the effect of IT reputation on loan contracts, we analyzed 4,145 loan facility-years for borrowers with superior IT reputation in the year before the loan versus borrowers with no IT reputation. Our results indicate that firms that have appeared five consecutive years in the prestigious annual Information week 500 list of America’s most IT innovative firms, a proxy for superior IT reputation, are more likely to be charged a lower interest rate, face less covenant restrictions, and have a have a higher number of participating banks in their loans.

Information Technology Capability and Stock Returns: Theory and Evidence

This paper investigates whether information technology (IT) capability of a firm is associated with higher stock returns. Using a sample of firms identified as IT leaders based on their superior IT...

Information technology applications and competitive advantage in hotel companies

PurposeThis paper aims to propose a conceptual framework that illustrates how information technology (IT) applications may lead to competitive advantage in hotel companies.Design/methodology/approachThe paper is written based on a synthesis of previous literature in this area.FindingsMultiple areas need to be carefully evaluated in developing and implementing IT projects so that they can lead to competitive advantage in hotel companies. There are four closely related areas when analyzing IT decisions in hotels, which include coherence between the business strategy and IT decision, types of IT applications, intended benefits of IT decisions, and decision‐making style. Technology sophistication, management skills, and integration of resources are key issues when implementing IT decisions. Investments into IT applications in hotel companies can lead to superior IT competencies and IT capabilities, which can subsequently result in lower cost, agility, innovation, added value for customers, and better customer service. However, not all IT investments may result in positive outcomes or their sustainability may be short lived. In addition, there can be a lag time between making IT investment decisions and seeing their intended outcomes.Practical implicationsThere are multiple areas and issues that need to be considered in making and implementing IT investment decisions if they are to contribute to the company's competitive advantage. Hotel companies need to be selective in their IT investment decisions and look at each IT investment from the strategic management perspective.Originality/valueThis is one of the first articles in the hospitality field that offers a theoretical framework on how IT applications can lead to competitive advantage in hotels. It also offers numerous theoretical and practical implications. Therefore, this paper should help hotel executives and researchers in evaluating IT projects in hotel companies.

EXAMINATION OF A PATH MODEL RELATING INFORMATION TECHNOLOGY INFRASTRUCTURE WITH FIRM PERFORMANCE

This article draws on the resource‐based view of the firm to investigate the mechanisms through which information technology (IT) impacts firm performance. Research suggests that the relationship between IT and firm performance may be both direct and indirect. In this study, a path model is tested that proposes a firm's IT infrastructure resources as having both a direct impact on organizational performance, as well as an indirect effect that is propagated through its impact on an intermediate organizational resource, a firm's logistics information system (LIS). The results suggest that positive firm performance may be derived directly from an organization's superior IT infrastructure, as well as indirectly, through its enabling impact on LIS's. These findings contribute to our understanding of the nature of the relationship between IT and firm performance by exploring the value of IT at both the process and organizational levels.

The Aftermath of Information Technology Outsourcing: An Empirical Study of Firm Performance Following Outsourcing Decisions

Increasingly, organizations are jumping onto the information technology (IT) outsourcing bandwagon in an effort to create value. However, evidence indicating the positive economic consequences of such initiatives has been limited. This study attempts to fill this void by synthesizing the process-oriented research in IT business value literature and the resource-based theory to develop an integrative research framework for assessing the value proposition of IT outsourcing. With a process-oriented lens, the framework suggests that the effects of IT outsourcing are best documented at the process level and hence, it is imperative that one takes into consideration the impact of IT outsourcing on performance at both the process level as well as the firm level. Grounded in the resource-based view, the framework also accounts for the complementary role of firms' core IT capability as a critical condition for the value creation of IT outsourcing. Consistent with the process-oriented prediction, the findings suggest that the positive effects of IT outsourcing appear mostly at the process level, but not at the firm level. Moreover, it is found that the level of business value created by IT outsourcing is contingent on firms' core IT capability. Firms with superior core IT capability are found to enjoy an advantage in leveraging their outsourcing initiatives to enhance firm value.

Issues in Linking Information Technology Capability to Firm Performance

The resource-based view has been proposed to investigate the impact of information technology (IT) investments on firm performance. Researchers have shown that a firm's ability to effectively leverage its IT investments by developing a strong IT capability can result in improved firm performance. We test the robustness of this approach and examine several related issues. Our results indicate that firms with superior IT capability indeed exhibit superior current and sustained firm performance when compared to average industry performance, even after adjusting for of prior firm performance. However, the differences in the results from various analyses suggest that the impact of halo effects and prior financial performance of firms must be taken into consideration in future tests of IT capability. Further, it is critical to develop theoretically derived multidimensional measures of IT capability in order to continue to apply the RBV approach to assess the impact of IT investments on firm performance.

Accounting And Visual Basic: Whats The Connection?

It is not enough today for accountants simply to know how to use word processing and spreadsheet software. In the knowledge age, accounting professionals must use infor-mation technology to the fullest. The ability to create, process, understand, and distri-bute information often determines work productivity, ratings on job performance evaluations, and even ultimate career successes. Accounting graduates with superior information technology (IT) skills are highly recruited, valued, and rewardedthese are the employees who are best able to perform the computer tasks required by their professional responsibilities. This paper reviews some reasons why todays accountants must be familiar with programming concepts in general, and Visual Basic (VB) in par-ticular. It also reviews those VB programming tools that are especially useful to accounting applications.

Enhancing call-detail reporting using multimedia technologies

Two features have motivated the Web's growth: timely information; and information not previously available everywhere. The most common complaint about older application systems is their isolation, they are not easily accessible to others. This calls for integrating the Web, a distribution mechanism, with the application system, providing timely information. The maintenance costs of both hardware and software are comparable with the older systems. Superior information technology solutions can help us obtain such desirable results. One such solution is a call-detail application, not previously available to users through the Web having multimedia capabilities. The Advanced Telecommunications Institute (ATI) designed and implemented the call-detail reporting application, which can be directly accessed at the end-user's desktop using a Web browser. We discuss the project-enhancing call-detail reporting using multimedia technologies.