Management Information Systems Quarterly
Abstract
A slowdown in revenue growth, referred to as revenue stall in this study, is a key concern for any firm. We examine how information technology-producing firms (i.e., IT firms) differ from non-IT firms in experiencing revenue stall and in benefiting from R&D investments in terms of reduced revenue stall. We hypothesize that whereas IT firms experience more revenue stall than non-IT firms, R&D investments reduce revenue stall to a greater extent in IT firms than in non-IT firms. Our empirical analyses of a longitudinal dataset of more than 1,400 large public firms in the United States from 1950 to 2015 broadly support our hypotheses. Consistent with the theoretical arguments underlying our hypotheses, we also find that IT firms experience higher competition, dynamism, and turbulence, and have higher intangible assets than non-IT firms.