Paper ID
3175
Description
As new information technologies emerge every day, it is essential for firms to decide whether to be first adopters or later adopters of innovative IT applications. The dramatic impact of the Internet and digitization leads us to question whether the basic rules of first mover advantages are still relevant to information technology investment in an era of rapid diffusion of innovation and globalization. In the previous generation of information system development, early investment in complex information systems generated sustainable competitive advantage. However, as the costs of developing information systems decrease rapidly in the digital age, the business value from early investment in innovative IT applications is unlikely to be associated with durable profitability. Therefore, by looking at the investment timing in mobile banking, we examine whether early investment in innovative IT applications can lead to first mover advantages in the digital age.
Recommended Citation
Chae, Ho-Chang, "First Mover (Dis)advantages in IT Investment in the Digital Age: Empirical Study of Mobile Banking" (2019). ICIS 2019 Proceedings. 27.
https://aisel.aisnet.org/icis2019/governance_is/governance_is/27
First Mover (Dis)advantages in IT Investment in the Digital Age: Empirical Study of Mobile Banking
As new information technologies emerge every day, it is essential for firms to decide whether to be first adopters or later adopters of innovative IT applications. The dramatic impact of the Internet and digitization leads us to question whether the basic rules of first mover advantages are still relevant to information technology investment in an era of rapid diffusion of innovation and globalization. In the previous generation of information system development, early investment in complex information systems generated sustainable competitive advantage. However, as the costs of developing information systems decrease rapidly in the digital age, the business value from early investment in innovative IT applications is unlikely to be associated with durable profitability. Therefore, by looking at the investment timing in mobile banking, we examine whether early investment in innovative IT applications can lead to first mover advantages in the digital age.