scholarly journals Mapping Portfolio IT Investment by Perception Level Management and IT investments toward Organization Performance (Case study : BPR Mustika Utama Kolaka Southeast Sulawesi)

2017 ◽  
Vol 0 (2) ◽  
pp. 149
Author(s):  
Nurfitria Ningsi ◽  
Apol Pribadi Subriadi
Keyword(s):  
Organization Performance ◽  
It Investment ◽  
It Investments

scholarly journals Governing information technology (IT) investment: A contingency perspective on organization’s IT investment goals

2021 ◽  
pp. 031289622110095
Author(s):  
Syaiful Ali ◽  
Peter Green ◽  
Alastair Robb ◽  
Adi Masli
Keyword(s):  
Information Technology ◽  
Boards Of Directors ◽  
Contingency Theory ◽  
Jel Classification ◽  
It Investment ◽  
It Investments ◽  
Contingency Perspective ◽  
Uniform Approach ◽  
Business Executives

Using contingency theory, we argue that there is not a uniform approach for companies to govern information technology (IT) investments. Rather, the level of governance over IT investments is contingent upon the organization’s goals for its IT investments. We find that Australian organizations with both operation- and market-focused IT investment goals (i.e. dual-focused IT goals) demonstrate higher IT investment governance (ITIG) levels than those with less focused IT goals. We also document that dual-IT-focused firms that do not implement high levels of ITIG underperform. Our study informs business executives, boards of directors, and other practitioners interested in governance implementations over IT investments. JEL Classification: M1

The Moderating Effect of Context on the Market Reaction to IT Investments

2006 ◽  
Vol 20 (1) ◽  
pp. 19-44 ◽  
Author(s):  
Wonseok Oh ◽  
Joung W. Ki m ◽  
Vernon J. Richardson
Keyword(s):  
Market Reaction ◽  
Abnormal Returns ◽  
Interaction Effects ◽  
Asset Specificity ◽  
Event Studies ◽  
Growth Potential ◽  
It Investment ◽  
It Investments ◽  
Strategic Role ◽  
Main Effects

This paper examines the moderating effects of firm and IT characteristics on the market reaction to IT investment announcements. A special emphasis has been placed on the potential interaction effects of these two types of variables, since the previous event studies have paid limited attention to the possibility that they interact and jointly alter investors' perceptions in relation to IT investment announcements. Very recently, several authors have noted the importance of interaction effects on theory development for IS research. Their assessments are particularly relevant to IT-value event studies, since the market reaction to IT investment announcements involves a complex process shaped by the interaction of firm and IT characteristics. Based on the previous studies in IS, finance, and accounting, a firm's growth potential and uncertainty are used as proxies to represent firm characteristics, while IT strategic role and asset-specificity of IT are chosen as the variables reflecting IT characteristics. Three other variables (discloser information, firm size, and industry) are included to control for their effects. We develop eight hypotheses based on the examinations of the main and interaction effects of firm and IT characteristic variables on the shareholder's reaction to IT investment announcements. The results of the main effects indicate that a firm's growth prospects, uncertainty, the strategic role of IT, and discloser information are significantly related to cumulative abnormal returns (CARs), while no significant effect was observed for asset-specificity of IT resources. Interestingly, however, interaction effects reveal that the stock market reacts with a discount to announcements of IT investments that are characterized as highly asset-specific in the presence of uncertainty. In addition, the market reacts more favorably to investments with a transformational IT strategic role when the firm faces greater uncertainty. One of our main contributions in this study is to provide a finer level of granularity with regard to the market reaction to IT investments by considering the interaction as well as the main effects of firm and IT characteristics.

The Four P's Revisited: Business Value Assessment of the Infrastructure Impact of it Investments

1998 ◽  
Vol 13 (3) ◽  
pp. 181-190
Author(s):  
Theo J.W. Renkema
Keyword(s):  
Decision Making ◽  
Financial Services ◽  
Information Infrastructure ◽  
Strategic Decision ◽  
Value Assessment ◽  
It Investment ◽  
It Investments ◽  
Prime Concern ◽  
Infrastructure Investments

Assessing the business impacts of increased IT investment has become one of the major issues in contemporary management. Many senior managers realize that a well-structured appraisal process might make the vital difference between IT success and IT failure, both in the private and the public sectors. Senior management's prime concern has shifted from controlling IT costs to managing and delivering IT benefits. Today, increased emphasis is being put on the role of infrastructure investments in order to fully exploit the profit potential of IT. The infrastructure impact of IT investments more and more centres around the emerging notion of an information infrastructure. Assessing the role and impacts of infrastructure investments, however, has proved to be particularly difficult and it is not yet clear how the underlying strategic decision-making process should be managed. The purpose of this paper is to present a model that offers four control options – paraphrasing conventional business wisdom in marketing coined the ‘P4 model’ – to manage investment appraisal and to support organizational decision-making. As a prelude to this, the paper explores the role of an information infrastructure from an IT investment perspective and examines four styles of decision-making. It also presents case study material from the financial services sector, in order to illustrate the relevance and applicability of the P4 model. Much of this paper draws on a research study funded by Eindhoven University and two large financial services organizations.

Assessing the Value of Information Technology Investment to Firm Performance

2002 ◽  
pp. 257-278
Author(s):  
Qing Hu ◽  
Robert T. Plant
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Financial Performance ◽  
Capital Investment ◽  
Large Scale ◽  
Performance Data ◽  
It Investment ◽  
Firm Level ◽  
It Investments ◽  
And Performance

The promise of increased competitive advantage has been the driving force behind the large-scale investment in information technology (IT) over the last three decades. There is a continuing debate among executives and academics as to the measurable benefits of this investment. The return on investment (ROI) and other performance measures reported in the academic literature indicate conflicting empirical findings. Many previous studies have based their conclusions on the statistical correlation between IT capital investment and firm performance data of the same time period. In this study we argue that the causal relationship between IT investment and firm performance could not be reliably established through concurrent IT and performance data. We further submit that it would be more convincing to infer causality if the IT investments in the preceding years are significantly correlated with the performance of a firm in the subsequent year. Using the Granger causality models and three samples of firm-level financial data, we found no statistical evidence that IT investments have caused the improvement of financial performance of the firms in the samples. On the contrary, the causal models suggest that improved financial performance over consecutive years may have contributed to the increase of IT investment in the subsequent year. Implications of these findings as well as directions for future studies are discussed.

Methodologies for Investment Evaluation

2001 ◽  
pp. 78-97 ◽  
Author(s):  
Egon Berghout ◽  
Theo-Jan Renkema
Keyword(s):  
Corporate Strategy ◽  
Problem Area ◽  
Future Research ◽  
It Investment ◽  
It Investments ◽  
Investment Evaluation ◽  
Body Of Knowledge ◽  
New Business ◽  
Extensive Body ◽  
Basic Approaches

The evaluation of information technology (IT) investments has been a recognised problem area for the last four decades, but has recently been fuelled by rising IT budgets, intangible benefits and considerable risks and gained renewed interest of both management and academics. IT investments already constitute a large and increasing portion of the capital expenditures of many organizations, and are bound to absorb a large part of future funding of new business initiatives. However, for virtually all firms, it is difficult to evaluate the business contribution of an IT investment to current operations or corporate strategy. Consequently, there is a great call for methods and techniques that can be of help in evaluating IT investments, preferably at the proposal and decision-making stages. The contribution of this chapter to the problem area is twofold. First, the different concepts, which are used in evaluation are discussed and more narrowly defined. When speaking about IT investments, concepts are used that originate from different disciplines. In many cases there is not much agreement on the precise meaning of the different concepts used. However, a common language is a prerequisite for the successful communication between the different organizational stakeholders in evaluation. In addition to this, the chapter reviews the current methods for IT investment evaluation and puts them into a frame of reference. All too often new methods and guidelines for investment evaluation are introduced, without building on the extensive body of knowledge that is already incorporated in the available methods. Four basic approaches are discerned: the financial approach, the multi-criteria approach, the ratio approach and the portfolio approach. These approaches are subsequently compared on a number of characteristics on the basis of methods that serve as examples for the different approaches. The chapter concludes with a review of key limitations of evaluations, suggestions on how to improve evaluation practice and recommendations for future research. This chapter draws on earlier work as published in Renkema and Berghout (1997), Berghout (1997), and Renkema (1996; 2000).

scholarly journals Breaking through unravel problems in ERP implementation using agile

2019 ◽  
Vol 8 (2) ◽  
pp. 16
Author(s):  
Santo Fernandi Wijaya ◽  
Angelina Ervina Jeanette Egeten
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Organization Performance ◽  
Erp Implementation ◽  
Erp System ◽  
Industrial Companies ◽  
New Methodologies ◽  
Agile Model

Demand for the industry to enhance competitive advantage. For that, the industry is required to make a breaking through in order to enhance the organizational performance. This is a reason for addressing the inefficiencies in managing people, processes, organizations, and technology. One of the efforts in improving organization performance is the development in the field of Information Systems as an effort to improve the agility of the organization. ERP system is one solution that can be employed in order to improve organization performance. However, in reality, industrial companies face problems in ERP implementation. This is a challenge to solve the problems of implementing an ERP system for industry. In this opportunity, researchers intend to conduct a re-search to identify the problems of factors in the ERP implementation, namely by proposing agile methods as one of the new methodologies in the effort to solve the problems in the ERP implementation for an industry. The results of this study will result in an agile model of implementing ERP for improving the capacity of ERP systems. This study idea is to analyze the agile method as a solution alternative to make changes for the ERP implementation success. This study is using Structural Equation Modeling as a quantitative data analysis approach of an industry as a case study.   

Financial Appraisal and the IS/IT Investment Decision Making Process

1998 ◽  
Vol 13 (1) ◽  
pp. 3-14 ◽  
Author(s):  
Joan Ballantine ◽  
Stephanie Stray
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
Capital Investment ◽  
Investment Decision ◽  
Decision Making Process ◽  
It Investment ◽  
It Investments ◽  
Investment Appraisal ◽  
Investment Decision Making ◽  
Financial Appraisal

This paper explores the techniques used by organizations to appraise Information Systems (IS)/Information Technology (IT) investments, and concentrates, in particular, on techniques of capital investment appraisal. We draw on relevant studies reported in both the accounting and finance, and the IS literature, which have addressed their usage. Where possible comparisons are drawn between both sets of literatures. The results of a survey that specifically examined IS/IT investment appraisal practices of a sample of UK companies is also presented. Among the issues discussed include the extent to which capital investment appraisal techniques are used to appraisal investments, the importance of the techniques used and the problems attendant on the decision making process.

Sign in / Sign up

Export Citation Format

Share Document