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Paper Type
ERF
Description
With technology increasingly being at the forefront of value generation for firms, organizations turn their attention to procuring IT assets as they leverage their resources strategically to derive value from their investments. While past efforts have traditionally focused on evaluating IT investments' impact on firm value and performance, recent work has sought to understand organizations' IT investment choices and, saliently, their commitment to IT investment plans by evaluating firms' realized IT spending in light of past investment plans. Acknowledging that organizations' engagement in real earnings management has been recognized as a driver of commitment to IT investment plans, we propose an extension of recent work by evaluating the effect of macroeconomic forces on this relationship, namely, technology shocks. We aim to shed light on the impact of emerging technologies on organizations' IT investment choices and increase our understanding of their commitment to investment plans by considering external forces.
Paper Number
1557
Recommended Citation
Diaz Campo, Maria Paula; Shoja, Amin; and Marakas, George M., "Effect of Technology Shock on Firm Commitment to IT Investment Plans" (2023). AMCIS 2023 Proceedings. 13.
https://aisel.aisnet.org/amcis2023/conf_theme/conf_theme/13
Effect of Technology Shock on Firm Commitment to IT Investment Plans
With technology increasingly being at the forefront of value generation for firms, organizations turn their attention to procuring IT assets as they leverage their resources strategically to derive value from their investments. While past efforts have traditionally focused on evaluating IT investments' impact on firm value and performance, recent work has sought to understand organizations' IT investment choices and, saliently, their commitment to IT investment plans by evaluating firms' realized IT spending in light of past investment plans. Acknowledging that organizations' engagement in real earnings management has been recognized as a driver of commitment to IT investment plans, we propose an extension of recent work by evaluating the effect of macroeconomic forces on this relationship, namely, technology shocks. We aim to shed light on the impact of emerging technologies on organizations' IT investment choices and increase our understanding of their commitment to investment plans by considering external forces.
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Conference Theme