IT Investments, Alignment and Firm Performance: Evidence from an Emerging Economy

Presenter Information

Dongwon Lee, University of Maryland, College Park, MD, United States.Follow
Sunil Mithas, Robert H. Smith School of Business, University of Maryland, College Park, MD, United States.Follow

Location

260-051, Owen G. Glenn Building

Start Date

12-15-2014

Description

This study presents and tests a model in which the effect of IT investments on firm revenues is associated with the dimensions of IT-business alignment in an emerging market context. We disaggregate firms’ IT-business alignment into three dimensions: (1) IT investment-business strategy alignment, (2) IT delivery-business priority alignment, and (3) IT change-business change alignment. Using a secondary data set comprising more than two hundred Indian companies, we find that IT delivery-business priority alignment and IT change-business change alignment more strongly moderate the relationship between IT investments and firm revenues. Specifically, firms with IT change-business change alignment and IT delivery-business priority alignment have higher revenue at higher levels of IT investment than firms that display IT investment-business strategy alignment. Our additional exploratory analyses demonstrate firms with IT change-business change alignment outperform firms that show alignment at other dimensions of IT-business alignment at the high levels of software and service investments

Recommended Citation

Lee, Dongwon and Mithas, Sunil, "IT Investments, Alignment and Firm Performance: Evidence from an Emerging Economy" (2014). ICIS 2014 Proceedings. 29.
https://aisel.aisnet.org/icis2014/proceedings/ISStrategy/29