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Journal ArticleDOI

Information Technology Impact and Role of Firm Age and Export Activity: An Emerging Economy Context

10 Sep 2014-Journal of Global Information Technology Management (Routledge)-Vol. 17, Iss: 3, pp 169-187

Abstract: This study seeks to deepen the understanding of research in business value of information technology by examining the role of contextual factors such as firm age and export activity in information technology impact following contingency theory perspective. The study is set in India and provides generalization in a new setting of emerging economy. An empirical study was conducted using data from 320 firms between 2007 and 2010. The results indicate that information technology investments enable firms to reduce their operational costs without contingencies related to firm age and export activity. However, the impact of information technology investment for improving profit is contingent on export levels such that the impact is higher for high exports firms. This work contributes to the literature by examining firm age and export activity as contextual factors and reveals the impact of information technology might be either contingent or non-contingent, subject to specific organizational outcome.
Topics: Contingency theory (53%), Information technology (53%), Business value (52%), Information system (51%), Emerging markets (50%)
Citations
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Abstract: Risks Management Application in Helping the Poor Through Microfinancing by Edmond Njombe Lyonga MS, Mountain State University, 2012 BS, Mountain State University, 2010 BSC, Buea University, 2004 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management—Finance

20 citations


Cites background from "Information Technology Impact and R..."

  • ...Dixit and Panigrahi (2014) elucidated that improvement in capital productivity will free up labor and capital for other productive tasks with a cascading effect leading to higher revenues and profits for the firm. Emerging technology can play a role in inducing improvements in the productivity level of businesses resulting from an increase of outputs. Therefore, capital productivity is likely to mediate partially the impact of technology investment on firm profit. Tabuwe, Muluh, Tanjong, Akpan-Obong, and Sikali (2013) summarized that in Cameroon, emerging technology training was officially introduced into the curriculum of public schools in 2001 through a cyber-education project targeted at secondary and tertiary education....

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  • ...Donnelly (2012) explained that the concept of the transformational leadership theory was used to build trust, loyalty, admiration, and respect between lenders and individual borrowers....

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  • ...Dixit and Panigrahi (2014) elucidated that improvement in capital productivity will free up labor and capital for other productive tasks with a cascading effect leading to higher revenues and profits for the firm....

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Journal ArticleDOI
Keshab Ray1, Meenakshi Sharma1Institutions (1)
Abstract: The purpose of this article is to discover the antecedents of brand strength and analyze its impact on global branding. The present research examines the impact of brand strength on global branding...

4 citations


Cites background from "Information Technology Impact and R..."

  • ...…enable firms to reduce their operational costs without contingencies related to firm age and export activity, but the impact of information technology investment for improving profit is contingent on export levels such that the impact is higher for high-export firms (Dixit & Panigrahi, 2014)....

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Journal ArticleDOI
Abstract: Purpose The purpose of this paper is to explore the moderated effect of family involvement on the relationship between information and communication technology (ICT) and firm performance. Design/methodology/approach According to agency and transaction cost theories, distinctive family business characteristics provide a unique context that favours a more efficient use of ICT. The authors perform a multivariate analysis that includes the moderating effect of family involvement and considers the possible endogeneity of the ICT variable. Findings The results, using a large panel of Spanish manufacturing firms, confirm the importance of family involvement for explaining differences in terms of the impact of this technology in family and non-family businesses. The relationship between ICT and performance is stronger for family firms than for non-family firms. Research implications The paper provides new evidence for the academic literature on ICT impact and family firms. It corroborates the importance of using an organizational perspective to explain differences in the effect of ICT on performance. Practical implications Family firms should understand the opportunities that family involvement offers regarding ICT impact on performance, and exploit this moderating effect to achieve competitive advantages. Originality/value No previous studies deal with the impact of family involvement on ICT-performance analysis. This study fills this gap and increases the understanding of how family business involvement moderates the ICT-performance relationship.

3 citations


Journal ArticleDOI
Ahad Zareravasan1, Michal Krčál1Institutions (1)
Abstract: Information Systems Business Value (ISBV) has been a key research topic for the IS research community. While the vast majority of ISBV research demonstrates the positive relationship between IS and firm performance, the fundamental question of the causal relationships between IS and business value remains partly unexplained. Moreover, researchers do not share a unified understanding of ISBV concepts. Therefore, this research intends to synthesize the past 30 years of empirical ISBV research, identify the gaps and shortcomings, conceptualize the ISBV concepts, and propose possibilities for further research that will widen the current narrowly shared ISBV bottom line. We aim to synthesize (1) different operationalization of concepts in existing ISBV research; (2) IS determinants, consequences, and the relations among the variables; (3) the role of contextual factors; and (4) the adopted theoretical views.

1 citations



References
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Journal ArticleDOI
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.
Abstract: Despite the importance to researchers, managers, and policy makers of how information technology (IT) contributes to organizational performance, there is uncertainty and debate about what we know and don't know. A review of the literature reveals that studies examining the association between information technology and organizational performance are divergent in how they conceptualize key constructs and their interrelationships. We develop a model of IT business value based on the resource-based view of the firm that integrates the various strands of research into a single framework. We apply the integrative model to synthesize what is known about IT business value and guide future research by developing propositions and suggesting a research agenda. A principal finding is that IT is valuable, but the extent and dimensions are dependent upon internal and external factors, including complementary organizational resources of the firm and its trading partners, as well as the competitive and macro environment. Our analysis provides a blueprint to guide future research and facilitate knowledge accumulation and creation concerning the organizational performance impacts of information technology.

3,145 citations


"Information Technology Impact and R..." refers background in this paper

  • ...According to Melville, Kraemer, and Gurbaxani (2004), IT is valuable and provides potential benefits of improvement in quality and flexibility, reduction in costs and enhancement of productivity; however, the complex mechanism of achieving these benefits requires a “context-contingent set of…...

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Journal ArticleDOI
Abstract: Self-service technologies (SSTs) are increasingly changing the way customers interact with firms to create service outcomes. Given that the emphasis in the academic literature has focused almost exclusively on the interpersonal dynamics of service encounters, there is much to be learned about customer interactions with technology-based self-service delivery options. In this research, the authors describe the results of a critical incident study based on more than 800 incidents involving SSTs solicited from customers through a Web-based survey. The authors categorize these incidents to discern the sources of satisfaction and dissatisfaction with SSTs. The authors present a discussion of the resulting critical incident categories and their relationship to customer attributions, complaining behavior, word of mouth, and repeat purchase intentions, which is followed by implications for managers and researchers.

2,544 citations


Journal ArticleDOI
Michael Wade1, John Hulland2Institutions (2)
Abstract: Information systems researchers have a long tradition of drawing on theories from disciplines such as economics, computer science, psychology, and general management and using them in their own research. Because of this, the information systems field has become a rich tapestry of theoretical and conceptual foundations. As new theories are brought into the field, particularly theories that have become dominant in other areas, there may be a benefit in pausing to assess their use and contribution in an IS context. The purpose of this paper is to explore and critically evaluate use of the resource-based view of the firm (RBV) by IS researchers. The paper provides a brief review of resource-based theory and then suggests extensions to make the RBV more useful for empirical IS research. First, a typology of key IS resources is presented, and these are then described using six traditional resource attributes. Second, we emphasize the particular importance of looking at both resource complementarity and moderating factors when studying IS resource effects on firm performance. Finally, we discuss three considerations that IS researchers need to address when using the RBV empirically. Eight sets of propositions are advanced to help guide future research.

2,412 citations


"Information Technology Impact and R..." refers background in this paper

  • ...Wade and Hulland (2004) summarized the studies on IT investment and firm performance into four categories of direct and positive, direct and negative, no effect, and contingent effect, based on the outcome effect of IT investment....

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Journal ArticleDOI
TL;DR: The increased interest in the «productivity paradox,» as it has become known, has engendered a significant amount of research, but thus far, this has only deepened the mystery.
Abstract: The retationship between information technology IT and productivity is widely discussed but little understood. Delivered computing power in the U.S. economy has increased by more than two orders of magnitude since 1970 (Figure 1) yet productivity, especially in the service sector, seems to have stagnated (Figure 2). Given the enormous promise of IT to usher in «the biggest technological revolution men have known» [29], disillusionment and even frustration with the technology is increasingly evident in statements like «No, computers do not boost productivity, at least not most of the time» [13]. The increased interest in the «productivity paradox,» as it has become known, has engendered a significant amount of research, but thus far, this has only deepened the mystery

2,324 citations


"Information Technology Impact and R..." refers background in this paper

  • ...For example, Hitt and Brynjolfsson (1996) found that benefits gained from IT have not led to supernormal business profitability and Mithas, Tafti, Bardhan, and Goh (2012) found a positive impact of IT on profitability....

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  • ...Structures, systems, processes, and standards develop or emerge in organizations as they age (Blau & Scott, 1962)....

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Journal ArticleDOI
Richard P. Bagozzi1, Youjae Yi2Institutions (2)
TL;DR: This compendium of standards for the use and interpretation of structural equation models (SEMs) removes some of the mystery and uncertainty of the use of SEMs, while conveying the spirit of their possibilities.
Abstract: We provide a comprehensive and user-friendly compendium of standards for the use and interpretation of structural equation models (SEMs). To both read about and do research that employs SEMs, it is necessary to master the art and science of the statistical procedures underpinning SEMs in an integrative way with the substantive concepts, theories, and hypotheses that researchers desire to examine. Our aim is to remove some of the mystery and uncertainty of the use of SEMs, while conveying the spirit of their possibilities.

1,982 citations


"Information Technology Impact and R..." refers background in this paper

  • ...The six columns show the GOF measures for Model 1 and Model 2 for time lags of 1, 2, and 3 years and indicate a good model fit in all cases as per the level of GOF measures recommended by Bagozzi and Yi (2012)....

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  • ...According to Bagozzi and Yi (2012), the sample size should be above 100, preferably above 200....

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Performance
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No. of citations received by the Paper in previous years
YearCitations
20211
20202
20181
20172