Dynamics of Information Acquisition: Does Investment in Information Technology Matter?

The purpose of the study is to develop a theoretical model to ascertain if the IT investment in the banking sector is capable of generating a new equilibrium with increased efficiency. The empirical strategy is to seek an indirect test for Jordanian banking sector by looking at the time profile of banking profits as a temporal function of IT investment. The study enquires if the banking sector, as an iterative process of credit allocation and information acquisition through IT investment, lead to a stable equilibrium? Does IT investment ensure stable market shares for Jordanian banks in the long run? The study finds that investment in IT has led the banking system in Jordan away from an efficient equilibrium. We also find that the banks in Jordan directly interact with each other, although they may have collusive arrangements with some of their rivals, this means the banking market is not fragmented.

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

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.

DEVELOPMENT OF A SOFTWARE PRODUCT FOR EVALUATING INVESTMENT PROJECTS BASED ON THE GAME THEORY METHOD

The paper describes the developed software product-the decision support system (DSS) «DSS Invect 2020» and its module «IT INVESTMENT», which can be used both independently and as part of the DSS «DSS Invect 2020». The DSS is designed to develop recommendations of the LPR during the selection of rational financial strategies by investors. «DSS Invect 2020» allows you to evaluate the attractiveness of investment projects in the field of digitalization of enterprises. The DSS «DSS Invect 2020» is made according to the modular principle. This makes it possible to supplement the DSS with other modules. The «DSS Invest 2020» program will allow forming a hierarchical view of the qualitative issue of choosing investment projects within the framework of choosing investor strategies using the DSS during the procedure for evaluating investment projects in the field of digitalization of enterprises, taking into account multifactorial factors.

Restoring clinical information system operations post data disaster: the role of IT investment, integration and interoperability

PurposeDelay in the clinical information system (CIS) restoration overseeing critical health-care operations after an unexpected data loss can be fatal for patients under care. Investment in information technology (IT) capabilities and synergy between various computerized systems has been argued as the resilient information system's enablers. The purpose of this study is to empirically quantify the influence of IT investment, integration and interoperability in recovering the CIS from a data disaster.Design/methodology/approachAn archival dataset sourced from a European Commission-sponsored survey of 773 hospitals across 30 countries in Europe is utilized to study the relationships. The study adopts a quasi-experimental research design approach where sample observations are weighted based on their propensity to be selected in treatment groups. The artificial weighing allows attaining a pseudo-random sample to counter the effects of selection bias.FindingsThe study finds that hospitals with more than 5% of the budget dedicated to IT have 100% higher odds of recovering immediately from a critical data loss in comparison to those that have less than 1% investment in IT. The greater extent of IT integration significantly reduces the time to recover the CIS, while interoperability problems at the organizational level lessen the odds of immediate recovery by 19%. Interoperability problems at the technical and semantic levels do not significantly impact recovery times of the CIS.Originality/valueThe study proposes several empirically quantified and scientifically tested recommendations for health-care providers for faster restoration of critical CIS operations post data loss. The differential impact of the interoperability problems at the technical, semantic and organizational levels has also been highlighted.

Information Technology Investment and Commercialized Innovation Performance: Dynamic Adjustment Costs and Curvilinear Impacts

Firms’ investment in information technology (IT) has been widely considered to be a key enabler of innovation. In this study, we integrate prior findings on the augmenting pathways (where IT investment supports innovation) with a new theory explaining the suppressing pathways (where dynamic adjustment costs associated with large IT investment can be detrimental to innovation) to propose an overall inverted U-shaped relationship between IT investment and commercialized innovation performance (CIP). To test our theory, we analyze a unique panel dataset from the largest economy in Europe and discovered a curvilinear relationship between IT investment and CIP for firms across a broad spectrum of industries. Our research presents empirical evidence corroborating the augmenting and suppressing pathways linking IT investment and CIP. Our findings serve as a cautionary signal to executives, discouraging overinvestment in IT.

The impact of managing IT on business-IT alignment and firm performance: an empirical study

Purpose Though prior studies have attempted to explore the various effects of managing information technology (IT) investment on firm performance, the mechanism through which management of IT impact on firm performance rests less clear. The purpose of this study is to examine the impact of managing IT and business-IT alignment on firm performance. Design/methodology/approach Drawing on the resource-based theory and process theory, this study examines how managing IT impacts business-IT alignment and firm performance. The primary survey of 182 responses from IT and business managers from Sri Lanka was empirically examined. Findings The findings reveal that managing IT has a positive and strong impact on business-IT alignment and firm performance. Further, business-IT alignment partially mediates between managing IT investment and firm performance relationships. Research limitations/implications Today, businesses have invested a massive amount of money in IT investment, and the return on this investment is always a serious concern for managers and industry practitioners. This study finding proposes meaningful insights on managing IT, business-IT alignment and firm performance. Originality/value This study opens up the black box on the above nomological linkage and contributes to the literature by extending the theoretical lenses while suggesting insightful and practical implications.

Interaction of IT investment mandates and mobile savvy affecting mobile office performance in corporates: Focusing on the moderating effects of IT savvy

This study investigates the effect of IT investment portfolios on the performance of mobile business services, as well as the moderating role of IT savvy. This study pulls the concept of IT investment mandates into the conceptual research framework of mobile investment. A survey for the IT specialists working at 123 enterprise-level companies was conducted and hierarchical regression analysis was adopted. Our results show that IT investment and organizational IT capabilities influence the performance of the mobile office and that IT savvy plays as a moderator in the relationship between investment mandates and mobile office performance. This research also may indicate that transactional assets are most helpful factors for a change by the adoption of mobile technology. This study is a rare research paper to explain the impact of IT investment portfolios on the mobile office performance in an academic methodology.