Abstract
In this research, we investigate the role of alternative IT innovation strategies (systematic, opportunistic, and non-IT innovation) on earnings persistence. Building on agility theory we argue that systematic IT innovation leads to sustainable value creation and ability to recover from negative earnings and recession. Using a sample of large US firms we find that good (bad) performance of systematic IT innovators is more persistent (transitory) than non-systematic IT innovators, and are more likely to recover from recession. We conclude that systematic IT innovators are better prepared to deal with the modern hypercompetitive environment.
Recommended Citation
Chen, Changling; Lim, Jee-Hae; and Stratopoulos, Theophanis C., "Sustainable Value Creation: The role of IT innovation persistence" (2009). AMCIS 2009 Proceedings. 812.
https://aisel.aisnet.org/amcis2009/812