Paper Type

ERF

Abstract

The integration of Information Technology (IT) in business operations has revolutionized innovation, efficiency, and competitiveness since the mid-2000s, ushering in new business ecosystems. However, debates persist regarding the precise impact of IT capability on firm performance, complicated by methodological challenges such as self-reporting bias and inadequate capture of diverse IT investments. This study proposes a novel mixed-methods approach, combining data from a comprehensive IT Leader survey with publicly available financial data, to address these limitations. Employing advanced econometric techniques, including panel data analysis and subgroup analyses, we aim to comprehensively understand how different types of IT investments influence firm performance metrics beyond Tobin’s Q. Expected contributions include methodological advancements, insights into the heterogeneous nature of IT's impact, and valuable guidance for strategic decision-making regarding IT investments. This research promises to enrich understanding of the intricate interplay between IT investments and firm success, benefiting both academia and industry practitioners.

Paper Number

1545

Author Connect URL

https://authorconnect.aisnet.org/conferences/AMCIS2024/papers/1545

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Aug 16th, 12:00 AM

Unraveling the Nexus: Exploring the Relationship Between IT Investments and Firm Performance

The integration of Information Technology (IT) in business operations has revolutionized innovation, efficiency, and competitiveness since the mid-2000s, ushering in new business ecosystems. However, debates persist regarding the precise impact of IT capability on firm performance, complicated by methodological challenges such as self-reporting bias and inadequate capture of diverse IT investments. This study proposes a novel mixed-methods approach, combining data from a comprehensive IT Leader survey with publicly available financial data, to address these limitations. Employing advanced econometric techniques, including panel data analysis and subgroup analyses, we aim to comprehensively understand how different types of IT investments influence firm performance metrics beyond Tobin’s Q. Expected contributions include methodological advancements, insights into the heterogeneous nature of IT's impact, and valuable guidance for strategic decision-making regarding IT investments. This research promises to enrich understanding of the intricate interplay between IT investments and firm success, benefiting both academia and industry practitioners.

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