Path Analysis of the Relationship between Competitive Strategy, Information Technology, and Financial Performance

1990 ◽  
Vol 7 (1) ◽  
pp. 47-64 ◽  
Author(s):  
Steven W. Floyd ◽  
Bill Wooldridge
Keyword(s):  
Information Technology ◽  
Financial Performance ◽  
Path Analysis ◽  
Competitive Strategy ◽  
The Relationship

Investment in IT and the Business Performance of Financial Companies

2006 ◽  
pp. 1-23 ◽  
Author(s):  
Irene Henriques ◽  
Perry Sadorsky
Keyword(s):  
Information Technology ◽  
Financial Performance ◽  
Stock Price ◽  
Business Performance ◽  
Var Model ◽  
Strategic Investment ◽  
Vector Autoregressive ◽  
Landscape Information ◽  
General Business ◽  
The Relationship

Global information technology and competitive financial alliances are helping to reshape the business landscape. Information technology (IT) and well functioning financial markets play a crucial role in increasing economic growth and prosperity. The purpose of this study is to empirically investigate the relationship between investment in IT and the business performance of financial companies. A vector autoregressive (VAR) model is used to test hypotheses one (increased spending on IT increases financial performance) and two (increased financial performance increases spending on IT) where financial performance is assumed to be adequately measured by stock price returns. Control variables for general business cycle conditions are included in the analysis. Our results show that the greatest benefits from increases in technology accrue to insurance and other financial companies. Managers of these companies could increase their business performance through strategic investment and use of IT.

scholarly journals Kinerja Keuangan Memediasi Pengaruh Modal Intelektual dan Struktur Modal pada Nilai Perusahaan di Masa Pandemi Covid-19

2021 ◽  
Vol 31 (10) ◽  
pp. 2503
Author(s):  
Luh Ayu Meliani ◽  
Dodik Ariyanto
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Path Analysis ◽  
Intellectual Capital ◽  
Firm Value ◽  
Sampling Technique ◽  
Company Value ◽  
Negative Effect ◽  
The Relationship ◽  
Positive Effect

This study examines the effect of intellectual capital and capital structure on firm value with financial performance as a mediating variable. The sample was selected by purposive sampling technique. Data were analyzed using path analysis. The results of the analysis show that intellectual capital has no effect on financial performance, but has a positive effect on firm value. Capital structure has a positive effect on financial performance, but has no effect on firm value. Financial performance has a negative effect on firm value. The relationship between capital structure and firm value is successfully mediated by financial performance, however, financial performance does not mediate the relationship between intellectual capital and firm value. This research has implications for those who need information about company value in pharmaceutical sub-sector companies by considering the factors that influence it, especially during the Covid 19 pandemic. Keywords: Intellectual Capital; Capital Structure; Firm Value; Financial Performance.

The effect of digital transformation strategy on performance

2020 ◽  
Vol 31 (3) ◽  
pp. 441-462
Author(s):  
Hecheng Wang ◽  
Junzheng Feng ◽  
Hui Zhang ◽  
Xin Li
Keyword(s):  
Information Technology ◽  
Financial Performance ◽  
Organizational Performance ◽  
Cognitive Conflict ◽  
Digital Transformation ◽  
Content Type ◽  
Short And Long Term ◽  
Digital Strategy ◽  
The Relationship

Purpose The purpose of this study is to verify whether digital transformation strategy (DTS) could improve the organizational performance and provide a comprehensive analysis for enterprises on the necessity of implementing digital transformation in the context of China and draw on the perspectives of “Skewed conflict,” “minority dissent theory” and “too-much-of-a-good-thing.” This study investigates the curvilinear moderating role of cognitive conflict between DTS and performance. Design/methodology/approach An empirical investigation was used to collect a large sample data of Chinese enterprises’ digital transformation. A multiple linear regression analysis with SPSS was used to test the proposed hypotheses such as the inverted U-shaped moderating effect of the cognitive conflict. Findings In the Chinese context, DTS has a positive relationship on the short- and long-term financial performance. Moreover, this relationship was moderated by cognitive conflict such that the relationship between DTS and short-term financial performance could be further enhanced under the moderate cognitive conflict; however, the relationship between DTS and long-term financial performance was considerably influenced for higher cognitive conflict. Originality/value Based on the co-evolution of the information technology/information system (IT/IS) and business strategy, this study clarified the relationships among DTS, digital strategy and business and information technology strategies. By focusing on corporate strategy, this study further examined the effect of digital transformation on both short- and long-term financial performance. To further reveal the micro-psychological mechanisms underlying the effect of DTS on organizational performance, this study confirmed the inverted U-shaped moderating effect of the top management team’s cognitive conflict. Therefore, this research provides a new theoretical perspective for future research in the field of IT/IS, DTS and digital strategy.

The influence of information technology strategy and management support to the internal business process, competitive advantage, financial and non-financial performance of the company

2018 ◽  
Vol 14 (3) ◽  
pp. 317-333
Author(s):  
Endang Astuti ◽  
Suhadak ◽  
Sri Mangesti Rahayu ◽  
Wilopo
Keyword(s):  
Information Technology ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Partial Least Square ◽  
Least Square ◽  
Technology Strategy ◽  
Management Support ◽  
Unit Of Analysis ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to conduct a research to analyze and to explain the influence of information technology strategy (ITS) and management support (MS) on internal business processes (IBPs), competitive advantage (CA) and financial performance (FP) and non-financial performance (NFP) of a company. Design/methodology/approach This study uses a quantitative approach and is included in an explanatory research. This study belongs to the category of perceptive research, and the unit of analysis is an individual (Singarimbun and dan Effendi, 1989). The study population is Carrefour executives/managers. The unit of analysis in this study is an individual who is a Carrefour manager and who becomes the sample. This study is conducted throughout the Carrefour chains in Indonesia. Method of data analysis uses descriptive analysis and inferential statistic, using partial least square. Findings This study found that ITS has no significant effect on FP, but it has a significant effect on NFP. It also found that MS has a significant effect on IBP CA and FP and NFP. This study found that IBPs have no significant effect on FP but have a significant effect on NFP and CA. CA has no significant effect on FP, but it has a significant effect on NFP. Further, NFP has a significant effect on FP. Originality/value This research is important to understand comprehensively the relationship between information technology and IBPs, CA and company performance. The difference between this study and previous studies is that this study examines the relationship between MS and IBP to CA, NFP and corporate FP.

scholarly journals Does The Value of the Company Affected Intellectual Capital with Financial Performance as Interesting Variables?

2020 ◽  
Vol 1 (2) ◽  
pp. 115-121
Author(s):  
Rio Ahmad Junaedi ◽  
Elva Nuraina ◽  
Nur Wahyuning Sulistyowati Nur
Keyword(s):  
Linear Regression ◽  
Real Estate ◽  
Financial Performance ◽  
Path Analysis ◽  
Intellectual Capital ◽  
Firm Value ◽  
Quantitative Research ◽  
Conducting Path ◽  
Relationship Of ◽  
The Relationship

This study aims to examine the effect of intellectual capital on firm value through financial performance as an intervening variable in the property and real estate sub-sector companies which is quantitative research by applying hypothesis testing and conducting path analysis using linear regression. To test the influence of mediation in this study applying the Sobel test with the results of financial performance cannot mediate the relationship of intellectual capital and firm value because financial performance is not the only factor that influences the movement of company values, and intellectual capital itself is a factor that cannot be measured directly different from financial performance.

scholarly journals Effect of emotional exhaustion and knowledge sharing on depersonalization, work accomplishment and organizational performance

2022 ◽  
Vol 18 (1) ◽  
pp. 0-0
Keyword(s):  
Information Technology ◽  
Path Analysis ◽  
Knowledge Sharing ◽  
Organizational Performance ◽  
Emotional Exhaustion ◽  
Organizational Outcomes ◽  
The Relationship

The objective of the present study is to empirically investigate the relationship between emotional exhaustion and knowledge sharing of individual and organizational outcomes. Data was collected from 672 respondents from the information technology (IT) sector. The results from path analysis revealed that emotional exhaustion is (i) positively related to depersonalization, and (ii) negatively related to work accomplishment and organizational performance. The results also reveal that knowledge sharing is (i) negatively related to depersonalization, and (ii) positively related to work accomplishment and organizational performance. However, depersonalization is not negatively related to organizational performance. As predicted, work accomplishment is positively related to organizational performance. The diametrically opposite results of emotional exhaustion and knowledge sharing are particularly interesting. The implications for management and practicing mangers are discussed.

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