Investment Strategy for Integrating Wireless Technology into Organizations

2011 ◽  
pp. 500-506
Author(s):  
Assion Lawson-Body
Keyword(s):  
Information Technology ◽  
Environmental Factors ◽  
Investment Decisions ◽  
Investment Strategy ◽  
Wireless Technology ◽  
Risk And Uncertainty ◽  
Wireless Technologies ◽  
It Investments ◽  
Investment Appraisal ◽  
Evaluation Techniques

Firms rely on IT investments (Demirhan et al., 2002; Tuten, 2003), because a growing number of executives believe that investments in information technology (IT) (i.e., wireless technologies) help boost firm performance. The use of wireless communications and computing is growing quickly (Kim & Steinfield, 2004; Leung & Cheung, 2004; Yang et al., 2004). But issues of risk and uncertainty due to technical, organizational, and environmental factors continue to hinder executive efforts to produce meaningful evaluation of investment in wireless technology (Smith et al., 2002). Despite the use of investment appraisal techniques, executives often are forced to rely on instinct when finalizing wireless investment decisions. A key problem with evaluation techniques, it emerges, is their treatment of uncertainty and their failure to account for the fact that outside of a decision to reject an investment outright, firms may have an option to defer an investment until a later period (Tallon et al., 2002).

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.

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

Heuristic biases in investment decision-making and perceived market efficiency

2018 ◽  
Vol 10 (1) ◽  
pp. 85-110 ◽  
Author(s):  
Syed Zulfiqar Ali Shah ◽  
Maqsood Ahmad ◽  
Faisal Mahmood
Keyword(s):  
Financial Markets ◽  
Market Efficiency ◽  
Negative Impact ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Investment Strategy ◽  
Individual Investors ◽  
Content Type ◽  
Specific Investment ◽  
The Relationship

Purpose This paper aims to clarify the mechanism by which heuristics influences the investment decisions of individual investors, actively trading on the Pakistan Stock Exchange (PSX), and the perceived efficiency of the market. Most studies focus on well-developed financial markets and very little is known about investors’ behaviour in less developed financial markets or emerging markets. The present study contributes to filling this gap in the literature. Design/methodology/approach Investors’ heuristic biases have been measured using a questionnaire, containing numerous items, including indicators of speculators, investment decisions and perceived market efficiency variables. The sample consists of 143 investors trading on the PSX. A convenient, purposively sampling technique was used for data collection. To examine the relationship between heuristic biases, investment decisions and perceived market efficiency, hypotheses were tested by using correlation and regression analysis. Findings The paper provides empirical insights into the relationship of heuristic biases, investment decisions and perceived market efficiency. The results suggest that heuristic biases (overconfidence, representativeness, availability and anchoring) have a markedly negative impact on investment decisions made by individual investors actively trading on the PSX and on perceived market efficiency. Research limitations/implications The primary limitation of the empirical review is the tiny size of the sample. A larger sample would have given more trustworthy results and could have empowered a more extensive scope of investigation. Practical implications The paper encourages investors to avoid relying on heuristics or their feelings when making investments. It provides awareness and understanding of heuristic biases in investment management, which could be very useful for decision makers and professionals in financial institutions, such as portfolio managers and traders in commercial banks, investment banks and mutual funds. This paper helps investors to select better investment tools and avoid repeating expensive errors, which occur due to heuristic biases. They can improve their performance by recognizing their biases and errors of judgment, to which we are all prone, resulting in a more efficient market. So, it is necessary to focus on a specific investment strategy to control “mental mistakes” by investors, due to heuristic biases. Originality/value The current study is the first of its kind, focusing on the link between heuristics, individual investment decisions and perceived market efficiency within the specific context of Pakistan.

Information technology capability, knowledge management capability, and organizational agility: The role of environmental factors

2018 ◽  
pp. 1-27 ◽  
Author(s):  
Sukanya Panda ◽  
Santanu Kumar Rath
Keyword(s):  
Information Technology ◽  
Knowledge Management ◽  
Environmental Factors ◽  
Positive Influence ◽  
Matched Pair ◽  
Organizational Agility ◽  
Management Capability ◽  
Research Findings ◽  
It Executives ◽  
Information Technology Capability

AbstractThis study precisely investigates the relationship of information technology (IT) and knowledge management (KM) capabilities with organizational agility along with the moderating influence of external environmental actors on this linkage. A matched-pair field survey was conducted and pretested structured questionnaires were administered to accumulate primary responses from 300 business and IT personnel working in various Indian financial groups. The research findings encompass first, IT and KM capabilities are enablers of organizational agility, while KM capability is more effective on agility. Second, a more diverse and less hostile environment is required for IT and KM capabilities to have more positive influence on agility, yet the moderating effects of environmental factors are found to be more on IT–agility linkage than on KM–agility relationship. These inferences provide several implications for the business and IT executives to concentrate on leveraging both IT and KM capabilities for generating augmented organizational agility.

An Examination of the Effect of IT Investments on Firm Value: The Case of Y2K-Compliance Costs

2000 ◽  
Vol 14 (2) ◽  
pp. 95-108 ◽  
Author(s):  
Gopal V. Krishnan ◽  
Ram S. Sriram
Keyword(s):  
Information Technology ◽  
Stock Market ◽  
Firm Value ◽  
Market Value ◽  
Annual Reports ◽  
Equity Valuation ◽  
Compliance Costs ◽  
Book Value ◽  
It Investments ◽  
Share Prices

In this study, using the recent Y2-compliance expenditures as an example, we examine whether disclosures relating to investments in information technology (IT) were relevant to investors in assessing the market value of equity. We use a sample of 190 firms that disclosed estimates of total Y2K-compliance costs in their 1997 annual reports to examine the association between Y2K-compliance costs and share prices. We test the joint hypothesis that Y2K-compliance costs were relevant to equity valuation of firms that chose to become Y2K-compliant and that these costs were sufficiently reliable to be reflected in share prices. We find that estimates of Y2K-compliance costs were positively and significantly related to share prices after controlling for earnings, book value of equity, and other factors. We find that the stock market is not shortsighted, and consider investments in Y2K-remediation efforts a significant and value-increasing activity for the average firm.

Effects of Information Technology on Business Performance and the Use of Accounting Measures

2015 ◽  
pp. 285-294
Author(s):  
Jorge A. Romero
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Business Performance ◽  
Future Research ◽  
Research Directions ◽  
It Investments ◽  
Positive Effects ◽  
Different Types ◽  
Future Research Directions ◽  
Area Of Study

The understanding of the link between Information Technology (IT) investments and firm performance is still not completely understood in spite of numerous studies. However, these studies are not united in how they examine the effects of IT on business performance. They differ in their criteria, methodologies, and samples. Therefore, while there are positive effects associated with IT on firm performance, it is still difficult to reach overarching conclusions and highlight that there is still a need for further research. Specifically, this chapter contributes to this area of study by discussing the different types of benefits that firms can get from IT investments, examining the use of accounting variables to quantify the effect of IT, and providing future research directions.

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