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.
Chen, Changling; Lim, Jee-Hae; and Stratopoulos, Theophanis C., "Sustainable value creation: The role of IT innovation persistence" (2009). AMCIS 2009 Proceedings. 752.