scholarly journals Time Lag Effects of IT Investment on Firm Performance: Evidence from Indonesia

2021 ◽  
Vol 55 (3) ◽  
pp. 89-101
Keyword(s):  
Firm Performance ◽  
Time Lag ◽  
It Investment ◽  
Lag Effects

A Lag Effect of IT Investment on Firm Performance

2011 ◽  
pp. 246-273
Author(s):  
Sangho Lee ◽  
Soung Hie Kim
Keyword(s):  
Firm Performance ◽  
Time Lag ◽  
It Investment ◽  
Performance Factors ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Lag Effect ◽  
Lag Model ◽  
Information Intensity ◽  
High Information

This chapter discusses the positive effects of IT investment on firm financial performance when a distinct range of characteristics is examined. The relationship between IT investment and firm performance considering the information intensity of the industry is explored using a distributed lag model. Findings indicate both a positive effect and a positive lag effect of IT investment. The effects of IT investment in the high information-intensive industry are significantly larger than in the low information-intensive industry. Furthermore, a lagged effect of IT investment is larger than an immediate effect, regardless of the information intensity of the industry. We conclude that firms in the high information-intensive industry need to be more cognizant of performance factors when investing in IT investment than in the low information-intensive industry. Moreover, it is necessary to consider the time lag between IT investment and firm performance.

Mediation and time-lag analyses of e-alignment and e-collaboration capabilities

2015 ◽  
Vol 115 (6) ◽  
pp. 1113-1131 ◽  
Author(s):  
Maomao Chi ◽  
Jing Zhao ◽  
Joey F. George
Keyword(s):  
Firm Performance ◽  
Business Strategy ◽  
Time Lag ◽  
Strategic Alignment ◽  
Business Strategies ◽  
Content Type ◽  
Lag Effects ◽  
Lag Effect ◽  
One Year ◽  
Selling Process

Purpose – Based on the literature of IT strategic alignment and e-collaboration, the purpose of this paper is to specify how e-business strategic alignment (e-alignment) influences e-collaboration capabilities and improves firm performance, and whether the time-lag effect existed in this relationship. Design/methodology/approach – The authors tested the research hypotheses using a field survey of 145 Chinese corporations. The research model was validated using SmartPLS 2.0 with both subjective and objective data collected from the survey and Oriana database. Findings – The results support the notion of a positive and significant link between e-alignment and e-collaboration capabilities and between e-collaboration capabilities and firm performance. The authors also show that the effect of e-alignment on performance is fully mediated by e-collaboration capabilities and that e-collaboration with suppliers has a one-year time-lag effect on firm performance. Research limitations/implications – This research extends and integrates the literature on IT strategic alignment and e-collaboration, and explains why and how e-alignment generates firm performance. Practical implications – This paper includes two implications for managers. First, when formulating e-business strategies, managers should focus on establishing e-collaboration capabilities with partners. Second, the downstream process is the direct sources of business value. Managers should take the establishment of e-selling process as a critical business strategy. Originality/value – By focussed on intermediate factors and time-lag effects, this study provides significant implications for IT strategic alignment and e-collaboration literature.

Information technology investment and innovation performance: does investment paradox exist?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peinan Ji ◽  
Xiangbin Yan ◽  
Yan Shi
Keyword(s):  
Information Technology ◽  
Time Lag ◽  
Innovation Performance ◽  
Test Model ◽  
It Investment ◽  
Firm Innovation ◽  
Data Set ◽  
Content Type ◽  
Lag Effect ◽  
Enterprise Innovation

Purpose The purpose of this study is to deepen the understanding of the effects of information technology (IT) investment on firm innovation performance and examining the investment paradox effect in China. Design/methodology/approach Using a sample of China’ public firms IT investment data between 2010 and 2016, the authors establish a test model of IT investment and innovation performance. Findings The result indicates that IT investment in firms have no effect on innovation performance in the investment period. However, in the full sample and manufacturing sample, the IT investment has a significant positive effect on innovation performance in the post-investment years. In addition, this study finds that large companies and low-age companies may contribute more to innovation when firm investment in IT. Research limitations/implications There are several limitations in this research. First, the authors are failed to obtain a larger sample about the IT investment information data set in China, so this study was compelled to use limited sample data from China, hence, this could lead to errors of too early generalization. Second, the authors use the number of invention patent applications to represent the performance of enterprise innovation, which may not show enterprise innovation effectively. Third, the firms in the sample are all in China Listed Companies, so this may not accurately reflect the entire environment of firm innovation performance, and could possibly. Practical implications The research confirms that there is a paradox and time lag effect in IT investment, which enterprises should pay attention to. Originality/value Existing research confirms that corporate IT investments can bring new products or services. However, the authors still do not know whether IT investment has improved the company’s ability of innovation. This study will fill this gap and the industry effect and time lag effect of the influence of IT investment on innovative performance are also examined.

scholarly journals IT capability as moderator between IT investment and firm performance

2008 ◽  
Vol 13 (3) ◽  
pp. 329-336 ◽  
Author(s):  
Yongmei Liu ◽  
Hongjian Lu ◽  
Junhua Hu
Keyword(s):  
Firm Performance ◽  
It Investment ◽  
It Capability

A Multi-Period Input DEA Model with Consistent Time Lag Effects

2019 ◽  
Vol 42 (3) ◽  
pp. 8-14
Author(s):  
Byungho Jeong ◽  
◽  
Yanshuang Zhang ◽  
Taehan Lee
Keyword(s):  
Time Lag ◽  
Dea Model ◽  
Lag Effects

The Role of IT Governance and Managing IT Investment on Firm Performance

2021 ◽  
pp. 104-120
Author(s):  
Aboobucker Ilmudeen
Keyword(s):  
Firm Performance ◽  
It Governance ◽  
It Investment ◽  
It Alignment ◽  
Governance Practices ◽  
Performance Context ◽  
Business It Alignment ◽  
Role Of It ◽  
It Practices

Although the multifaceted effects of managing or governing IT have been taken into consideration in both practice and theoretical debate, the mechanism through which these bring firm performance is yet unclear and limited. Drawing on the resource-based theory and the process theory, this chapter aims to systematically review the antecedents of business-IT alignment on the firm performance context. The findings of this study show that the business-IT alignment is derived from IT governance practices and managing IT investment to achieve firm performance. This study proposes that the firm performance cannot be attained by merely investing in IT; instead, firms should focus on effective management of IT practices and strategically align their business and IT strategies.

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.

An empirical study of relationship between IT investment and firm performance: A resource-based perspective

2006 ◽  
Vol 173 (3) ◽  
pp. 984-999 ◽  
Author(s):  
Shi-Ming Huang ◽  
Chin-Shyh Ou ◽  
Chyi-Miaw Chen ◽  
Binshan Lin
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
It Investment
Sign in / Sign up

Export Citation Format

Share Document