The Business Value of IT: A Synthesis and Framework of Archival Research

2011 ◽  
Vol 25 (2) ◽  
pp. 81-116 ◽  
Author(s):  
Adi Masli ◽  
Vernon J. Richardson ◽  
Juan Manuel Sanchez ◽  
Rodney E. Smith
Keyword(s):  
Firm Performance ◽  
Balanced Scorecard ◽  
Business Strategy ◽  
Firm Value ◽  
Business Value ◽  
Future Research ◽  
Archival Research ◽  
Accounting Information Systems ◽  
Business Context ◽  
The Impact

ABSTRACT This paper synthesizes recent empirical archival research investigating the link between information technology investment and business value. It examines (1) financial and nonfinancial measures to represent different elements of business value, (2) IT investment measures and links with firm performance, (3) IT and business complementarities that affect firm performance, and (4) the impact of business context and IT alignment with business strategy on resulting performance. The review of prior research is guided by a balanced scorecard framework that places IT in a business context and highlights the role of potential drivers and contextual factors that impact the association between IT and firm value. The paper concludes by proposing several broad avenues of future research that may be of particular interest to archival accounting information systems researchers.

Enterprise Systems Strategic Alignment and Business Value

2011 ◽  
pp. 42-58
Author(s):  
Euripidis Loukis ◽  
Ioakim Sapounas ◽  
Konstantinos Aivalis
Keyword(s):  
Business Strategy ◽  
Business Performance ◽  
Strategic Alignment ◽  
Enterprise Systems ◽  
Business Value ◽  
Future Research ◽  
Research And Practice ◽  
The Third ◽  
Research Stream ◽  
The Impact

This chapter is dealing with the alignment of enterprise systems with business strategy and its impact on the business value that enterprise systems generate. Initially the research on the strategic potential of ICT, which constitutes the basic theoretical foundation of the need for strategic alignment of enterprise systems, is analyzed. Then the previous research that has been conducted concerning enterprise systems strategic alignment is critically reviewed. It is grouped into three basic streams. The first of them is dealing with the conceptualization and basic understanding of enterprise systems strategic alignment. The second research stream aims at the development of models and frameworks for directing and assessing enterprise systems strategic alignment. The third research stream examines the impact of enterprise systems strategic alignment on business performance. Finally, an empirical investigation that has been conducted by the authors concerning the impact of enterprise systems strategic alignment on business performance as a guidance for future research on this topic is described. We expect that this chapter will sufficiently inform on strategic alignment, both researchers and practitioners in the area of enterprise systems, so that they can incorporate this highly important concept in their research and practice respectively.

Enterprise Systems Strategic Alignment and Business Value

2009 ◽  
pp. 152-168
Author(s):  
Euripidis Loukis ◽  
Ioakim Sapounas ◽  
Konstantinos Aivalis
Keyword(s):  
Business Strategy ◽  
Business Performance ◽  
Strategic Alignment ◽  
Enterprise Systems ◽  
Business Value ◽  
Future Research ◽  
Research And Practice ◽  
The Third ◽  
Research Stream ◽  
The Impact

This chapter is dealing with the alignment of enterprise systems with business strategy and its impact on the business value that enterprise systems generate. Initially the research on the strategic potential of ICT, which constitutes the basic theoretical foundation of the need for strategic alignment of enterprise systems, is analyzed. Then the previous research that has been conducted concerning enterprise systems strategic alignment is critically reviewed. It is grouped into three basic streams. The first of them is dealing with the conceptualization and basic understanding of enterprise systems strategic alignment. The second research stream aims at the development of models and frameworks for directing and assessing enterprise systems strategic alignment. The third research stream examines the impact of enterprise systems strategic alignment on business performance. Finally, an empirical investigation that has been conducted by the authors concerning the impact of enterprise systems strategic alignment on business performance as a guidance for future research on this topic is described. We expect that this chapter will sufficiently inform on strategic alignment, both researchers and practitioners in the area of enterprise systems, so that they can incorporate this highly important concept in their research and practice respectively.

scholarly journals Evaluating the effectiveness of integrated Accounting Information Systems (AIS) in ERP environment of Vietnamese garment companies

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Vu Quoc Thong
Keyword(s):  
Factor Analysis ◽  
Information Systems ◽  
Exploratory Factor Analysis ◽  
Enterprise Resource Planning ◽  
Balanced Scorecard ◽  
Accounting Information ◽  
Resource Planning ◽  
Future Research ◽  
Accounting Information Systems ◽  
The Way

Identifying factors defining the effectiveness of integrated AIS in the Enterprise Resource Planning (ERP) environment is really a challenging task. In our research, the effectiveness of integrated AIS in ERP is presented in the form of a Balanced Scorecard (BSC) model. This study analyzes data collected from 178 Vietnamese garment companies with AIS in an ERP environment. Then, Cronbach’s Alpha test and exploratory factor analysis (EFA) are conducted to assess the reliability of variables. The result identifies 28 variables from Vietnamese garment companies’ managers view grouped into 4-dimensional constructs of the BSC model that define the effectiveness of integrated AIS in an ERP environment. The conclusion on garment companies’ AIS evaluation factors paves the way for future research on other Vietnamese industries’ AIS evaluation in an ERP environment.

GREEN INNOVATION ANDFIRM PERFORMANCE: THE ECOLOGICAL MODERNIZATION PERSPECTIVE

2017 ◽  
Vol 12 (Number 1) ◽  
pp. 21-31
Author(s):  
Fadhilah Mohd. Zahari ◽  
T. Ramayah
Keyword(s):  
Firm Performance ◽  
Business Strategy ◽  
Performance Outcomes ◽  
Ecological Modernization ◽  
Economic Prosperity ◽  
Green Innovation ◽  
Sustainable Environment ◽  
Central Argument ◽  
The Impact ◽  
Economic Improvement

Green innovation is becoming an essential business strategy in the 21stcentury as it brings sustainable environment and economic prosperity hand in hand. Consequently, the impact of green innovation on firm performance has drawn enormous attention among the scholars for the past few decades, aiming at empirically justify the positive implications of being green in business. However, the analysis from the ecological modernization perspective remains limited, although the focus on preventive approach to achieve environmentaland economic improvement is the central argument of this theoretical lens. This study tackles the above issue by examining the performance outcomes of green innovation adoption in view of ecological modernization perspective. A quantitative, survey based study collected data from 130 Malaysian manufacturing firms, which was subsequently analyzed using SmartPLS 2.0. The findings generally corroborate the positive implications of green innovation on firm performance in the aspects of environment, economic and competitive advantage. Likewise, EM perspective fits in offering plausible insights of the findings, hence entails the alternative ground to be employed in other studies of the like.

The impact of service innovation on firm performance: a meta-analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changli Feng ◽  
Ruize Ma ◽  
Lin Jiang
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Meta Analysis ◽  
Service Innovation ◽  
Future Research ◽  
Quantitative Review ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship

PurposeWith the rise of service economy, many companies are attempting to gain a competitive advantage through service innovation. However, the existing research has not drawn consistent conclusions about the relationship between service innovation and firm performance. Hence, the purpose of this paper is to provide a quantitative review on the service innovation-performance relationship based on research findings reported in the extant literature.Design/methodology/approachStudies from 46 peer-reviewed articles were sampled and analyzed. A meta-analytic approach was adopted to conduct a quantitative review on the relationship between service innovation and firm performance, and the effects of any potential moderators were further explored.FindingsThe results found that service innovation has a significant positive impact on firm performance. Additionally, the relationship between service innovation and firm performance is influenced by measurement moderators (economic region and performance measurement), and contextual moderators (firm type, innovation type, customer factors and attitudes toward risk).Originality/valueThe meta-analysis has been used to explore the relationship between service innovation and firm performance, and the findings have contributed to the literature on service innovation, as well as providing future research directions.

Does R&D create additional business value through IT?

2017 ◽  
Vol 11 (2) ◽  
pp. 194-208 ◽  
Author(s):  
Yu Wang ◽  
Tie-nan Wang ◽  
Xin Li
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Business Value ◽  
It Investment ◽  
Content Type ◽  
Chinese Business ◽  
Fixed Effects Regression ◽  
The Impact ◽  
D Investment ◽  
It Payoff

Purpose R&D indicates absorptive capacity, which may affect IT payoff. The purpose of this paper is to examine how R&D investment affects the relation between IT investment and firm performance and under what circumstances R&D intensity is more beneficial to IT returns. Such study has been lacking in R&D research and IT payoff literature. Design/methodology/approach A conceptual model for linking IT investment, R&D investment, environmental dynamism and firm performance was developed and tested by data collected from Chinese listed firms from 2007 to 2013, using fixed effects regression model. Findings The results show positive moderating effects of firm R&D investment and government R&D subsidies on the relation between IT investment and firm performance. Furthermore, the impact of firm R&D investment on IT payoff is stronger for firms in more dynamic environments. The findings suggest that R&D investment creates additional business value through interactions with IT, and complementarities between R&D and IT, as manifested in their interaction effect on firm performance vary across industry sectors. Research limitations/implications This paper indicates the importance of complementarities between R&D and IT, which should prove helpful to researchers and practitioners engaged in Chinese business. Originality/value This paper presents one of the first attempts at examining the moderating effect of R&D investment on the relation between IT investment and firm performance. Especially this study helps to understand under what circumstances R&D investment is more or less likely to be beneficial to IT returns.

scholarly journals CORPORATE GOVERNANCE AND FIRM VALUE IN EMERGING MARKETS AN EMPIRICAL ANALYSIS OF ADR ISSUING EMERGING MARKET FIRMS

2012 ◽  
Vol 2 (1) ◽  
pp. 38-51 ◽  
Author(s):  
Aysun Ficici ◽  
C. Bulent Aybar
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Firm Value ◽  
Emerging Market ◽  
Market Value ◽  
Governance Structures ◽  
Market Values ◽  
Good Corporate Governance ◽  
Emerging Market Firms ◽  
The Impact

This study explores the value implications of good corporate governance for a sample of 54 ADR issuing emerging market firms (EMFs) from 9 countries primarily located in the regions of Asia, Eastern Europe and Latin America and the and employs recently constructed company composite corporate governance metric along with some alternative corporate governance measures associated with the origin of the issuing firm. Although the ADR literature primarily focuses on the impact of subscription to US disclosure requirements we contend that company and country specific corporate governance standards play a significant role in the risk reduction and ensuing value capture.  The fundamental inquiry in this study has the following foci: The primary focus is on the impact of corporate governance structures on firm performance as to whether adherence to standards creates market value for ADR issuing EMFs.  Do good corporate governance practices affect the value of EMFs? The secondary focus is concerned with whether the impact of corruption level and legal system in a firm’s home country affect the corporate structures of EMFs thus affecting the market value of firms.  In this study, we utilize Tobin’s q as the measure of firm performance/market value.  Our findings suggest that there is a significant correlation between corporate governance structures of ADR issuing EMFs and their market values and/or performances.  The results also indicate that the level of corruption and legal structures in home countries of EMFs strongly impact the corporate governance structures of these firms and sequentially affect their market values. Therefore, this research further contributes to the scholarly findings and suppositions that corporate structures of firms do create consequences on firm value.

scholarly journals The impact of hedge fund activism on target firm performance, executive compensation and executive wealth

2017 ◽  
Vol 6 (3) ◽  
pp. 14-28 ◽  
Author(s):  
Andrew Carrothers
Keyword(s):  
Firm Performance ◽  
Executive Compensation ◽  
Firm Value ◽  
Hedge Fund ◽  
Share Price ◽  
Target Firm ◽  
Increased Risk ◽  
Target Firms ◽  
Hedge Fund Activism ◽  
The Impact

This paper examines the relationship between hedge fund activism and target firm performance, executive compensation, and executive wealth. It introduces a theoretical framework that describes the activism process as a sequence of discrete decisions. The methodology uses regression analysis on a matched sample based on firm size, industry, and market-to-book ratio. All regressions control for industry and year fixed effects. Schedule 13D Securities and Exchange Commission (SEC) filings are the source for the statistical sample of hedge fund target firms. I supplement that data with target firm financial, operating, and share price information from the CRSP-COMPUSTAT merged database. Activist hedge funds target undervalued or underperforming firms with high profitability and cash flows. They do not avoid firms with powerful CEOs. Leverage, executive compensation, pay for performance and CEO turnover increase at target firms after the arrival of the activist hedge fund. Target firm executives’ wealth is more sensitive to changes in share price after hedge fund activism events suggesting that the executive team experiences changes to their compensation structure that provides incentive to take action to improve returns to shareholders. The top executives reap rewards for increasing firm value but not for increased risk taking.

Excessive managerial entrenchment, corporate governance, and firm performance

2019 ◽  
Author(s):  
◽  
Christelle Antounian
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Ceo Compensation ◽  
Inverse Correlation ◽  
Poor Performance ◽  
Ceo Turnover ◽  
Managerial Entrenchment ◽  
Board Monitoring ◽  
The Difference ◽  
The Impact

This paper investigates the impact of excessive managerial entrenchment on the CEO turnover-performance sensitivity, CEO compensation, and firm value. We measure the degree of managerial entrenchment based on the E-index presented by Bebchuck et al. (2006). Our main focus is on firms’ excess managerial entrenchment, which is calculated by finding the difference between firm’s E-index and its industry median in a given year. Our findings suggest that an increase in excess CEO entrenchment reduces the likelihood of CEO turnover due to poor performance. We also show a positive correlation between excessive entrenchment and CEO compensation as managers gain more power and authority when they are entrenched. On the other hand, excess CEO entrenchment has an inverse correlation with firm value. We propose that excessive managerial entrenchment has a converse impact on board monitoring and firm performance. Also, we suggest that a sound corporate protects the shareholders’ interests as it prevents CEOs from over entrenchment.

Diversity on Corporate Boards

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
Anzhela Knyazeva ◽  
Diana Knyazeva ◽  
Lalitha Naveen
Keyword(s):  
Firm Value ◽  
Firm Behavior ◽  
Future Research ◽  
Board Members ◽  
Annual Review ◽  
Publication Date ◽  
Board Governance ◽  
Corporate Boards ◽  
Board Diversity ◽  
The Impact

This article reviews existing research on board diversity. What role does diversity of board members play in board governance, and how does it influence firm behavior and firm value? First, given the recent focus on board diversity among institutional investors and regulators, we present stylized facts and time trends in board diversity. Second, we discuss the dimensions of diversity that have been examined in the literature. Third, we study the determinants of board diversity. Finally, we assess the research on the effects of board diversity on firm performance and outcomes. We discuss the endogeneity challenges of studying the impact of diversity on firm value and review the main approaches that existing studies have used to address endogeneity. We conclude with suggestions for future research on board diversity. Expected final online publication date for the Annual Review of Financial Economics, Volume 13 is March 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

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