Journal ArticleDOI
Information Technology Effects on Firm Performance as Measured by Tobin's q
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In this article, the authors examined the relationship between IT investments and Tobin's q, a financial market-based measure of firm performance, and found that IT investments had a significantly positive association with Tobin q values.Abstract:
Despite increasing anecdotal evidence that information technology (IT) assets contribute to firm performance and future growth potential of firms, the empirical results relating IT investments to firm performance measures have been equivocal. However, the bulk of the studies have relied exclusively on accounting-based measures of firm performance, which largely tend to ignore IT's contribution to performance dimensions such as strategic flexibility and intangible value. In this paper, we use Tobin's q, a financial market-based measure of firm performance and examine the association between IT investments and firm q values, after controlling for a variety of industry factors and firm-specific variables. The results based on data from 1988-1993 indicate that, in all of the five years, the inclusion of the IT expenditure variable in the model increased the variance explained in q significantly. The results also showed that, for all five years, IT investments had a significantly positive association with Tobin's q value. Our results are consistent with the notion that IT contributes to a firm's future performance potential, which a forward-looking measure such as the q is better able to capture.read more
Citations
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A resource-based perspective on information technology capability and firm performance: an empirical investigation
TL;DR: The concept of IT as an organizational capability is developed and empirically examining the association between IT capability and firm performance indicates that firms with high IT capability tend to outperform a control sample of firms on a variety of profit and cost-based performance measures.
Journal ArticleDOI
Review: information technology and organizational performance: an integrative model of it business value
TL;DR: A model of IT business value is developed based on the resource-based view of the firm that integrates the various strands of research into a single framework and provides a blueprint to guide future research and facilitate knowledge accumulation and creation concerning the organizational performance impacts of information technology.
Journal ArticleDOI
Shaping agility through digital options: reconceptualizing the role of information technology in contemporary firms
TL;DR: It is argued that information technology investments and capabilities influence firm performance through three significant organizational capabilities (agility, digital options, and entrepreneurial alertness) and strategic processes (capability-building, entrepreneurial action, and coevolutionary adaptation).
Journal ArticleDOI
Market-Based Assets and Shareholder Value: A Framework for Analysis
TL;DR: The authors developed a conceptual framework of the marketing-finance interface and discussed its implications for the theory and practice of marketing, and proposed that marketing is concern, concern, and concern.
Journal ArticleDOI
Performance Impacts of Information Technology: Is Actual Usage the Missing Link?
Sarv Devaraj,Rajiv Kohli +1 more
TL;DR: The general support for the principal proposition of this paper that "actual usage" may be a key variable in explaining the impact of technology on performance suggests that omission of this variable might be a missing link in IT payoff analyses.
References
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Journal ArticleDOI
Efficient capital markets: a review of theory and empirical work*
TL;DR: Efficient Capital Markets: A Review of Theory and Empirical Work Author(s): Eugene Fama Source: The Journal of Finance, Vol. 25, No. 2, Papers and Proceedings of the Twenty-Eighth Annual Meeting of the American Finance Association New York, N.Y. December, 28-30, 1969 (May, 1970), pp. 383-417 as mentioned in this paper
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Competitive Strategy: Techniques for Analyzing Industries and Competitors
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Journal ArticleDOI
Efficient Capital Markets: II
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Managing brand equity : capitalizing on the value of a brand name.
TL;DR: The most important assets of any business are intangible: its company name, brands, symbols, and slogans, and their underlying associations, perceived quality, name awareness, customer base, and proprietary resources such as patents, trademarks, and channel relationships as discussed by the authors.
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