Information technology investment and firm performance

Teekasap, Pard

doi:10.1109/miticon.2016.8025226

Cited by 2 publications

(4 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Research studies about the impact of IT investment on firm financial performance mainly focus on the performance of accounting indicators, such as profit margin (Teekasap, 2017), costs (Muscatello et al , 2016), productivity (Quan et al , 2003). According to Teekasap (2017), superior IT infrastructure can create a better firm performance because it can differentiate IT, leaders, from others in an early era. However, in a long run, IT investment does not drive firm performance.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Along with such lots of related research, the results, however, have produced what may be labeled the paradox of IT productivity. Compared with the significant positive relationship between IT investment and firm performance, a handful of studies on the impact of IT Event study Mixed (Cheng and Lee, 2008) Event study Mixed (Kohli et al, 2012) Regression analysis Negative (Luo et al, 2014) Regression analysis Mixed (Stores et al, 2018) Regression analysis Negative (Shea et al, 2019) Regression analysis Mixed (Sircar et al, 2000) Firm financial performance Statistical analysis Mixed (Quan et al, 2003) Statistical analysis Mixed (Campbell, 2012) Regression analysis Positive (Teekasap, 2017) Simulation model Negative (Boban and Susak, 2017) Statistical analysis Negative (Osei-Bryson and Ko, 2005) Operational and organizational performance Regression analysis Mixed (Chari et al, 2008) Regression analysis Mixed (Jeffers et al, 2008) Structural equation modeling Mixed (Hwang and Min, 2015) Causal model testing Positive (Mohamad et al, 2017) Structural equation modeling Positive (Acar et al, 2017) Structural equation modeling Mixed investments show weak or nonexistent links between IT spending and productivity from different countries or areas and different industries even in recent years. By grouping firms by the extent of diversification and by using an interaction term of IT and diversification, Stores et al (2018) demonstrate that IT investments fail to improve financial performance for some firms.…”

Section: Benefits Of Information Technology Investmentmentioning

confidence: 99%

“…It takes time for a firm to realize business benefits from its IT investment because it requires a considerable amount of time for a firm to first develop its ability to assimilate, combine and deploy its IT resources, and then to capitalize on its investment (Campbell, 2012). According to Teekasap (2017), in an early era, superior IT infrastructure can create a better firm performance because it can differentiate the IT leaders from others. However, in a long run, other firms are aware of the benefits from IT investment so they invest more on IT projects.…”

Section: Research Hypothesesmentioning

confidence: 99%

See 2 more Smart Citations

Information technology investment and innovation performance: does investment paradox exist?

Yan

2021

JABS

View full text Add to dashboard Cite

Purpose The purpose of this study is to deepen the understanding of the effects of information technology (IT) investment on firm innovation performance and examining the investment paradox effect in China. Design/methodology/approach Using a sample of China’ public firms IT investment data between 2010 and 2016, the authors establish a test model of IT investment and innovation performance. Findings The result indicates that IT investment in firms have no effect on innovation performance in the investment period. However, in the full sample and manufacturing sample, the IT investment has a significant positive effect on innovation performance in the post-investment years. In addition, this study finds that large companies and low-age companies may contribute more to innovation when firm investment in IT. Research limitations/implications There are several limitations in this research. First, the authors are failed to obtain a larger sample about the IT investment information data set in China, so this study was compelled to use limited sample data from China, hence, this could lead to errors of too early generalization. Second, the authors use the number of invention patent applications to represent the performance of enterprise innovation, which may not show enterprise innovation effectively. Third, the firms in the sample are all in China Listed Companies, so this may not accurately reflect the entire environment of firm innovation performance, and could possibly. Practical implications The research confirms that there is a paradox and time lag effect in IT investment, which enterprises should pay attention to. Originality/value Existing research confirms that corporate IT investments can bring new products or services. However, the authors still do not know whether IT investment has improved the company’s ability of innovation. This study will fill this gap and the industry effect and time lag effect of the influence of IT investment on innovative performance are also examined.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Section: Benefits Of Information Technology Investmentmentioning

confidence: 99%

Section: Research Hypothesesmentioning

confidence: 99%

See 1 more Smart Citation

Information technology investment and innovation performance: does investment paradox exist?

Yan

2021

JABS

View full text Add to dashboard Cite

show abstract

“…In addition to multinationality, some other financial characteristics such as leverage, firm size, profitability and liquidity were consistently found to be affecting firm value. Lastly, we quote nine more recent studies from 2015 until today: Teekasap P. (2016), in his paper develops a mathematical model and base it on reasons from two schools of thought. The results indicate that both schools of thought are correct in different situations.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Information Systems on Performance, Profitability, and Growth of Food Industries of Greece

Mitsos¹,

Beligiannis²

2020

IJSSER

View full text Add to dashboard Cite

The aim of the current research is to shed light on the effect of Information Systems (ISs) on performance, profitability, and growth of food industries in Greece. A questionnaire survey was conducted in the two hundred largest food businesses of Greece which are anonymous companies. Analysis of primary data shows that these companies are exporting and a quarter of them shows damage. Findings show that, these enterprises do not manage efficiently enough their company's balance sheet to generate profits and their fixed assets to generate sales. Moreover, most of food businesses use less than two ISs, mainly the ERP, and use them to manage only a small number of their operations. Although in the first decade of the twentieth century a revolution in the use of information systems is observed most food businesses in Greece do not invest a lot of money on ISs. Finally, firm's performance profitability and growth is independent of the size, the number and the cost of ISs. On the other hand, firms' profitability depends on the size of applied ISs. To sum up, the more ISs used by companies, the biggest the profits of the companies.

show abstract

Information technology investment and firm performance

Cited by 2 publications

References 17 publications

Information technology investment and innovation performance: does investment paradox exist?

Information technology investment and innovation performance: does investment paradox exist?

The Effect of Information Systems on Performance, Profitability, and Growth of Food Industries of Greece

Contact Info

Product

Resources

About