Paper Type

Short

Paper Number

PACIS2025-1142

Description

Unlike developed economies, where firms formulate and execute their strategies based on competitive dynamics, firms in emerging economies often craft their strategies and plan their discretionary expenditures in response to government policies. This research proposes an examination of the impact of government initiatives on startups' and incumbent firms' IT resources and innovation. We intend to use IT spending and firm performance data from CMIE Prowess and innovation data from Google Patents to analyze differences in spending and performance patterns between startups and incumbents across various industry sectors from 2015 to 2023. We expect the findings to complement prior work on determinants of IT spending and effects of IT investments on firm performance by considering the role of the regulatory environment, which has not received as much attention.

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Jul 6th, 12:00 AM

How Government Policies Shape IT Spending and Innovation in Startups and Incumbents in India

Unlike developed economies, where firms formulate and execute their strategies based on competitive dynamics, firms in emerging economies often craft their strategies and plan their discretionary expenditures in response to government policies. This research proposes an examination of the impact of government initiatives on startups' and incumbent firms' IT resources and innovation. We intend to use IT spending and firm performance data from CMIE Prowess and innovation data from Google Patents to analyze differences in spending and performance patterns between startups and incumbents across various industry sectors from 2015 to 2023. We expect the findings to complement prior work on determinants of IT spending and effects of IT investments on firm performance by considering the role of the regulatory environment, which has not received as much attention.