Determinants and Consequences of Firm Information Technology Budgets

2008 ◽  
Vol 83 (4) ◽  
pp. 957-995 ◽  
Author(s):  
Kevin W. Kobelsky ◽  
Vernon J. Richardson ◽  
Rodney E. Smith ◽  
Robert W. Zmud
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Value Chain ◽  
Business Processes ◽  
Contextual Factors ◽  
Weighted Average ◽  
Cross Sectional ◽  
Data Set ◽  
Technological Factors ◽  
Budget Levels

ABSTRACT: For most firms, the information technology (IT) budget represents a major element in the overall firm budget, and IT budget decisions often have significant operational and strategic impacts on the business processes in the firm’s value chain. In this paper we use a large unique data set to examine the extent to which IT budgets are affected by environmental, organizational, and technological circumstances. We find that our cross-sectional model explains substantial variance in IT budgets, which indicates that contingent environmental, organizational, and technological factors affect managers’ budget decisions. We then examine the extent to which these IT budget levels are related to future firm performance, measured using both broad financial accounting measures, such as operating profit margins and return on assets, and market returns. We find that IT budget levels are positively associated with subsequent firm performance and shareholder returns. We further suggest that IT’s aggregate effect on performance is a weighted average of two very different components: (1) context-driven IT budget levels, which reflect the effects of environmental, organization, and technological factors and the IT budgets resulting from them, and (2) idiosyncratic IT budget levels, which reflect the effect of any marginal firm-specific IT budget expenditures after controlling for these contextual factors. Both components are positively associated with performance, indicating that the specified contextual factors provide an incomplete explanation of firms’ value-relevant IT expenditures. The current study contributes to the accounting information systems and management accounting literatures by assessing the causes and consequences of IT budgets.

Returns on Investments in Information Technology: A Research Synthesis

2002 ◽  
Vol 16 (1) ◽  
pp. 7-30 ◽  
Author(s):  
Bruce Dehning ◽  
Vernon J. Richardson
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Business Processes ◽  
Interactive Effects ◽  
It Management ◽  
Future Research ◽  
Archival Studies ◽  
International Context ◽  
Information Technology Investments ◽  
It Performance

Understanding the return on investments in information technology (IT) is the focus of a large and growing body of research. The objective of this paper is to synthesize this research and develop a model to guide future research in the evaluation of information technology investments. We focus on archival studies that use accounting or market measures of firm performance. We emphasize those studies where accounting researchers with interest in market-level analyses of systems and technology issues may hold a competitive advantage over traditional information systems (IS) researchers. We propose numerous opportunities for future research. These include examining the relation between IT and business processes, and business processes and overall firm performance, understanding the effect of contextual factors on the IT-performance relation, examining the IT-performance relation in an international context, and examining the interactive effects of IT spending and IT management on firm performance.

Strategic Alignment Between Business and Information Technology

2011 ◽  
pp. 3582-3588
Author(s):  
Fernando José Barbin Laurindo
Keyword(s):  
Information Technology ◽  
Value Chain ◽  
Business Performance ◽  
Business Processes ◽  
Continuous Process ◽  
Strategic Alignment ◽  
It Effectiveness ◽  
Strategic Value ◽  
It Applications ◽  
Important Position

Information technology (IT) has assumed an important position in the strategic function of the leading companies in the competitive markets (Porter, 2001). Particularly, ecommerce and e-business have been highlighted among IT applications (Porter, 2001). Two basic points of view can be used for understanding IT’s role: the acquisition of a competitive advantage at the value chain, and the creation and enhancement of core competencies (Porter & Millar, 1985; Duhan, Levy, & Powell, 2001). Several problems have been discussed concerned with IT project results in effectiveness of their management. Effectiveness, in the context of this article, is the measurement of the capacity of the outputs of an information system or of an IT application to fulfill the requirements of the company and to achieve its goals, making this company more competitive (Shimizu, Carvalho, & Laurindo, 2006). There is a general consensus about the difficulty of finding evidence of returns over the investments in IT (the “productivity paradox”), even though this problem can be satisfactorily explained (Farrell, 2003). Carr (2005) defends the idea that IT in itself has no more strategic value, since it is so widely disseminated that it could not be a source of strategic differentiation anymore. In order to better use these investments, organizations should evaluate IT effectiveness, which allows the strategic alignment of objectives of implemented IT applications and their results with the company business vision (Shpilberg, Berez, Puryear, & Shah, 2007; Laurindo & Moraes, 2006). Besides, it must be highlighted that if IT applications are associated with changes in business processes, it is possible to notice greater impacts in business performance (Farrell, 2003). According to Benko and McFarlan (2003), three aspects must be taken into account about IT strategic alignment: IT projects portfolio, business objectives, and the constantly changing situation of business environment. Thus, the comparison and evaluation of business and IT strategies and between business and IT structures must be a continuous process, since the company situation is constantly changing to meet market realities and dynamics.

A Two-Wave Study of the Impact of Job Characteristics and Motivators on Perceived Stress among Information Technology (IT) Consultants

2012 ◽  
Vol 8 (4) ◽  
pp. 75-91 ◽  
Author(s):  
Lars Göran Wallgren ◽  
Jan Johansson Hanse
Keyword(s):  
Information Technology ◽  
Job Stress ◽  
Perceived Stress ◽  
Work Motivation ◽  
Job Characteristics ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Data Set ◽  
Job Demand ◽  
The Impact

The aim of this two-wave study was to test whether job characteristics (job demand, job control), with ‘motivators’ (e.g., recognition, achievement, possibility for growth) as the mediating variable, can predict perceived stress (e.g., stressed, tense). These relationships were tested simultaneously using structural equation modeling analyses. A web-based questionnaire survey was conducted among 320 information technology (IT) consultants in Sweden. Data were collected at two time points, over a six-month follow-up period. Cross-sectional studies have been presented earlier but one of the contributions of this study is that it is a two-wave data set. The present two-wave study uses a model which covers more information than a cross-sectional design and the results add another aspect to existing work motivation and stress research, by using a longitudinal data set, and relating job characteristics to perceived stress directly and indirect. These findings emphasize the importance of job demand and illuminate the role of motivators in the experience of job stress among IT consultants. The presented model can be used to examine potential causes of job stress among IT consultants and may generate important lessons for managing the general workforce of tomorrow.

scholarly journals TOGAF for designing the enterprise architecture of LAZISMU

2018 ◽  
Vol 2 (2) ◽  
pp. 58-64 ◽  
Author(s):  
Jefree Fahana ◽  
Ahmad Azhari
Keyword(s):  
Information Technology ◽  
Information Systems ◽  
Value Chain ◽  
Enterprise Architecture ◽  
Business Processes ◽  
Business Goals ◽  
Architecture Framework ◽  
Application Architecture ◽  
Organization Analysis ◽  
Architecture Development

LAZISMU as an amil zakat institution has an important role in collecting and managing zakat for public welfare. The existence of Law No. 23 of 2011 and the Minister of Religion Regulation No. 333 of 2015 on Guidelines for Granting Permits for the Establishment of Zakat Institutions requires that the management of zakat, infaq, and sadaq (ZIS) funds be transparent, accountable and prioritize professional principles. For this reason, there needs to be support from information systems and information technology to achieve these business goals. Information systems and technology will be utilized optimally if the development is aligned with the business objectives of the organization. Enterprise Architecture (EA) is a bridge to harmonize the business needs of an organization with Information Systems and Information Technology. Enterprise architecture planning at the LAZ has been designed using The Open Group Architecture Framework (TOGAF) with Architecture Development Method (ADM). Data collection is done by interviewing and making direct observations of the organization. Analysis tools used are the Unified Modelling Language (UML) method and the Value Chain method. The results of this study are blue print business architecture, data architecture, application architecture so that it can support the business processes that exist in LAZISMU.

Entrepreneurial orientation and firm performance in different environmental settings

2016 ◽  
Vol 23 (3) ◽  
pp. 703-727 ◽  
Author(s):  
Galina Shirokova ◽  
Karina Bogatyreva ◽  
Tatiana Beliaeva ◽  
Sheila Puffer
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Environmental Variable ◽  
Superior Performance ◽  
Cross Sectional ◽  
Data Set ◽  
Content Type ◽  
Market Growth ◽  
Environmental Hostility ◽  
Different Levels

Purpose – The purpose of this paper is to explore the relationship between entrepreneurial orientation (EO) and firm performance across different levels of environmental hostility and market growth. The contingency approach of two-way interactions of EO with each environmental variable is contrasted with the configurational approach of three-way interactions of EO simultaneously with different levels of both environmental variables. Design/methodology/approach – Hierarchical regression analysis is applied for the pooled data set of 163 Finnish and Russian small- and medium-sized enterprises, and supplemented with post hoc analysis of the differences in regression slopes across environmental configurations. Findings – Results show that EO is directly and positively associated with firm performance. However, the strength and direction of this relationship varies by configurations of the external environment variables. Firms achieve superior performance when adopting EO in environments with high levels of both hostility and market growth. In contrast, in favorable environments with low hostility and high market growth, EO adoption leads to lower firm performance. Research limitations/implications – The study contributes to the EO literature by demonstrating different effects of EO on firm performance across various environmental configurations. It uses cross-sectional data from two countries. Replication studies using different samples may further corroborate the results. Practical implications – In order to take advantage of opportunities and achieve better performance, managers of firms should analyze multiple elements of the environment concurrently and align EO to those conditions. Originality/value – The configurations of environmental hostility and market growth, representing both favorable and unfavorable elements of business context, have not been previously investigated together in one model of the EO-performance relationship.

scholarly journals Does Internet and Information Technology Help Farmers to Maximize Profit: A Cross-Sectional Study of Apple Farmers in Shandong, China

Land ◽  
2021 ◽  
Vol 10 (4) ◽  
pp. 390
Author(s):  
Fuhong Zhang ◽  
Apurbo Sarkar ◽  
Hongyu Wang
Keyword(s):  
Information Technology ◽  
Value Chain ◽  
Marketing Channel ◽  
Ordinary Least Squares ◽  
Marketing Channels ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Agricultural Income ◽  
Sales And Marketing ◽  
The Impact

The adoption of Internet and Information Technology (IIT) in organizations has been growing at a staggering pace. In agriculture, IIT has emerged from the prospects of modern agricultural structure, which profoundly bring revolution in the way of agribusiness. While the impacts of IIT for selecting productive sales and marketing channels is evidenced by the substantial literature in the field, there is a crucial research scope of inclusive analytical views, especially in an economics context. The prime objective of the article is to assess the impacts of IIT for choosing a productive sales and marketing channel. Moreover, we tend to find whether the usage of IIT can eventually foster the profitability of the farmers. The empirical set of data is collected from a cross-sectional survey conducted in Shandong province, China. We utilize the Ordinary Least-Squares (OLS) regression, propensity score matching (PSM), and Heckman’s two-stage regression approaches to craft the findings. The greater extent of the use of IIT, the more significant and positive the impact of agricultural income is. After using the Heckman regression and PSM model, IIT’s use significantly increases the efficiency for selecting the sales channel, and the impact on agricultural income is also prominent (around 40%). We also find that the supporting and nonagricultural income exceeded 30%. Finally, the outcomes of the study reveal significant positive impacts for selecting productive sales and marketing channels. On the basis of these findings, it is suggested that the government and relevant departments should strengthen the construction of agricultural information platforms and websites. Authorities should also extend the training facilities of fruit farmers regarding the use of IIT, which could be useful to boost the capability of fruit farmers to develop markets and promote the value chain.

scholarly journals Perencanaan Strategi Sistem dan Teknologi Informasi pada PT. Tripuri Mitra Nobelindo

2011 ◽  
Vol 2 (1) ◽  
pp. 341
Author(s):  
Dewan Pelawi ◽  
Franky Franky ◽  
Charles Willy ◽  
Bobby Irwanza
Keyword(s):  
Information Technology ◽  
Information System ◽  
Strategic Planning ◽  
Value Chain ◽  
Business Strategy ◽  
Business Processes ◽  
Future Application ◽  
It Strategy ◽  
Growth And Survival ◽  
Business Goals

Competitions faced by companies are some obstacles in achieving the business objectives to maintain the company's growth and survival. The use of information technology trend requires companies to use it in order to compete with competitors. Strategic planning of information system (IS) and information technology (IT) which refer to business strategy should be customized to the company's business processes. The process of finding a future application portfolio is preceded by the discovery of business strategy, IS/IT strategy managemen and IT strategy. The method used is the strategic planning of information system and information technology of Ward and Peppard. The discovery of business strategy through internal and external analysis of the company is done using tools: PEST, SWOT, Porter's five competitive model, Value chain, and CSF. The analysis of the current information systems helps determine the proposed IS and IT plan. The result achieved is strategic system plan and information technology that are appropriate to the company in achieving its business goals. 

scholarly journals A patients’ view of OA: the Global Osteoarthritis Patient Perception Survey (GOAPPS)

2020 ◽  
Author(s):  
Marianna Vitaloni ◽  
Angie Botto-van Bemden ◽  
Rosa Sciortino ◽  
Xavier Carné ◽  
Maritza Quintero ◽  
...  
Keyword(s):  
Value Chain ◽  
Online Survey ◽  
Task Force ◽  
Active Role ◽  
Cross Sectional Study ◽  
Patient Perception ◽  
Cross Sectional ◽  
Data Set ◽  
Surgical Treatments ◽  
Perception Survey

Abstract Background: Globally, osteoarthritis (OA) is the third condition associated with disability. There is still poor treatment in OA but science holds the key to finding better treatments and a cure. It is essential to learn what’s important to patients from them to implement the most effective OA management. The OA Patients Task Force, conducted the Global OA Patient Perception Survey (GOAPPS)-the first global survey to compare the quality of life (QoL) & patient perceptions of care across countries. The goal was to collect data on OA patients' perception of OA to understand patients’ needs and expectations to improve OA management.Methods: Observational, cross-sectional study by online survey data collection from six countries, translated into three languages. The survey was comprised of 3 sections: patient demographics and clinical symptomology characteristics; relationship with physicians: perception of attention, treatment, and information provided; and OA impact on daily activity and QoL. The results of the survey were evaluated using the Limited Data Set. The survey results were analyzed using descriptive statistics to characterize the patients' answers using the IBM SPSS® software.Results. A total of 1512 surveys were completed in 6 countries. 84.2% of respondents reported pain/tenderness and 91.1% experienced limitations to physical activities. 42.3% of patients were not satisfied with their current OA treatment. 86% had comorbidities, especially hypertension, and obesity. 51.3% and 78% would like access to additional drug or additional non-drug/non-surgical treatments respectively. 48.2% of patients perceived their QoL to be affected by OA Conclusions: OA has a significant impact on patients’ daily activities and their desire to play an active role in managing this disease. Patients are seeking additional treatments, especially no pharmacological/no surgical treatments stressing the need for investing in clinical research, implementing OA preventive measures, and managing interventions to improve the healthcare value chain in OA.

scholarly journals A patients’ view of OA: the Global Osteoarthritis Patient Perception Survey (GOAPPS), a pilot study

2020 ◽  
Vol 21 (1) ◽  
Author(s):  
Marianna Vitaloni ◽  
Angie Botto-van Bemden ◽  
Rosa Sciortino ◽  
Xavier Carné ◽  
Maritza Quintero ◽  
...  
Keyword(s):  
Value Chain ◽  
Online Survey ◽  
Task Force ◽  
Patient Perception ◽  
Cronbach’S Alpha ◽  
Cross Sectional ◽  
Data Set ◽  
Cronbach's Alpha ◽  
Surgical Treatments ◽  
Perception Survey

Abstract Background Globally, osteoarthritis (OA) is the third condition associated with disability. There is still poor treatment in OA but science holds the key to finding better treatments and a cure. It is essential to learn what’s important to patients from them to implement the most effective OA management. The OA Patients Task Force, conducted the Global OA Patient Perception Survey (GOAPPS)-the first global survey made by patients to analize the quality of life (QoL) & patient perceptions of care. The goal was to collect data on OA patients’ perception of OA to understand patients’ needs and expectations to improve OA management. Methods Observational, cross-sectional study by online survey data collection from six countries, translated into three languages. The questionnaire was comprised of 3 sections: patient demographics and clinical symptomology characteristics; relationship with physicians: perception of attention, treatment, and information provided; and OA impact on daily activity and QoL. The results of the survey were evaluated using the Limited Data Set. The survey results were analyzed using descriptive statistics to characterize the patients’ answers. Additionally, Cronbach’s alpha was calculated to determine internal consistency validity. Results A total of 1512 surveys were completed in 6 countries. 84.2% of respondents reported pain/tenderness and 91.1% experienced limitations to physical activities. 42.3% of patients were not satisfied with their current OA treatment. 86% had comorbidities, especially hypertension, and obesity. 51.3 and 78% would like access to additional drug or additional non-drug/non-surgical treatments respectively. 48.2% of patients perceived their QoL to be affected by OA. The Cronbach’s alpha was 0.61. Conclusions OA has a significant impact on patients’ daily activities and their desire to play an active role in managing this disease. Patients are seeking additional treatments, especially no pharmacological/no surgical treatments stressing the need for investing in clinical research, implementing OA preventive measures, and managing interventions to improve the healthcare value chain in OA.

scholarly journals Perencanaan strategis sistem informasi menggunakan Enterprise Architecture Planning pada PT. Karya Cipta Buana Sentosa Maumere

2018 ◽  
Vol 4 (1) ◽  
pp. 41
Author(s):  
Salahudin Robo ◽  
Trisno Trisno ◽  
Sunardi Sunardi ◽  
Santosa Santosa
Keyword(s):  
Information Technology ◽  
Value Chain ◽  
Enterprise Architecture ◽  
Business Processes ◽  
Added Value ◽  
Value Chain Analysis ◽  
Technology Infrastructure ◽  
Chain Analysis ◽  
Planning Approach ◽  
Is Value

Teknologi informasi semakin lama semakin maju dan setiap saat selalu ada perkembangannya yang berpengaruh terhadap berbagai aspek kehidupan. Salah satu diantaranya adalah aspek perekonomian yang berdampak positif bagi perusahaan. Oleh karena itu, setiap perusahaan berusaha untuk menerapkan teknologi informasi dengan tujuan meningkatkan efektifitas dalam proses bisnis, agar perusahan mampu memberikan nilai tambah yaitu berupa keunggulan dalam persaingan bisnis. Enterprise Architecture Planning (EAP) merupakan suatu metode pendekatan dalam perencanaan kualitas data yang berorientasi pada kebutuhan bisnis, perencanaan ini terdiri dari arsitektur data, aplikasi dan infrastruktur teknologi. Tujuan dari penelitian ini untuk menghasilkan proses bisnis perusahaan agar berjalan lebih efektif. Pemodelan bisnis yang digunakan pada penelitian menggunakan analisis value chain. Penggunaan value chain untuk mengetahui jenis-jenis kegiatan serta aktifitas yang ada dalam perusahaan, usulan atau rekomendasi sistem informasi tersebut ditunjukan untuk manager perusahaan terkait sesuai dengan visinya. Hasil dari penelitian ini untuk meningkatkan penyelarasan bisnis dan teknologi informasi pada perusahaan. Information technology is getting more advanced and always have a developing affects to various aspects of life. One of them is the aspect of economy that positively impacts the company. As the results, each company attempts to apply the information technology to improve the effectiveness in the business processing, so that company can give the added value such as the predominance in business competition. Enterprise Architecture Planning or EAP is a method of data quality planning approach that is oriented to business needs consisting of data architecture, application and technology infrastructure. The purpose of this study is to produce business processes of the company to run it more effectively. Business modeling that applied in this research is value chain analysis. The used of value chain is to know the type of activities that exist within the company. The proposed information system is addressed to the manager of related company in accordance with its vision.  

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