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

doi:10.1080/1097198X.2014.951295

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

Journal Article•DOI•

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

Gaurav Dixit, Prabin Kumar Panigrahi¹•Institutions (1)

Indian Institute of Management Indore¹

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

TL;DR: In this paper, the authors explored the role of contextual factors such as firm age and export activity in information technology impact following contingency theory perspective and revealed that the impact of information technology might be either contingent or non-contingent, subject to specific organizational outcome.

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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.

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Journal Article•

Risks Management Application in Helping the Poor Through Microfinancing

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Edmond Njombe Lyonga, Teresa Lao

01 Jan 2017-Journal of Accounting and Finance

TL;DR: Risks Management Application in Helping the Poor Through Microfinancing by Edmond Njombe Lyonga MS, Mountain State University, 2012 BS, MSC, Buea University, 2004 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management.

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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

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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 Article•DOI•

A Systematic Literature Review on 30 Years of Empirical Research on Information Systems Business Value

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Ahad Zareravasan¹, Michal Krčál¹•Institutions (1)

Masaryk University¹

01 Nov 2021-Journal of Global Information Management

TL;DR: In this article, the authors 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.

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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.

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9 citations

Journal Article•DOI•

Antecedents of Brand Strength and Its Impact on Global Branding of Indian IT Organizations

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Keshab Ray¹, Meenakshi Sharma¹•Institutions (1)

Birla Institute of Technology, Mesra¹

12 Oct 2020-Journal of Asia-pacific Business

TL;DR: In this article, the antecedents of brand strength and its impact on global brand strength were discovered and analyzed. And the authors examined the impact of global brands' strength on global branding.

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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...

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5 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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Proceedings Article•

Information Technology Resources and Manufacturing SMEs' Export Commitment: An Empirical Investigation.

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Sylvestre Uwizeyemungu¹, Placide Poba-Nzaou², JosÃ©e St-Pierre•Institutions (2)

Université du Québec à Trois-Rivières¹, Université du Québec à Montréal²

01 Jan 2018

4 citations

Journal Article•DOI•

Information Technology Resources and Manufacturing SMEs' Export Commitment: An Empirical Investigation

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Sylvestre Uwizeyemungu, Placide Poba-Nzaou, Josée St-Pierre

01 Mar 2022-International Business Review

TL;DR: In this article , the authors analyzed the effects of different configurations of the adoption of back-end information technology (IT) resources on the levels of export commitment of small and medium-sized enterprises (SMEs).

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4 citations

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Journal Article•

Linking perceived quality and customer satisfaction to store traffic and revenue growth

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Carol C. Bienstock, James R. Van Scotter, Emin Babakus

01 Jan 2005-Quality Engineering

TL;DR: Results suggest that both service and merchandise quality exert significant influence on store performance, measured by sales growth and customer growth, and their impact is mediated by customer satisfaction.

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259 citations

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

...For example, the personalization of offerings and services through improved customer profiles enabled by IT systems can lead to better customer responses (Ansari & Mela, 2003)....
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...…the costs associated with recording, preserving, and assimilating diverse sources of information about consumers are relatively lower due to the availability of information technologies such as web applications, websites, click-stream data, and consumer profiling applications (Ansari & Mela, 2003)....
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Book•

Some Estimates of the Contribution of Information Technology to Consumer Welfare

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Erik Brynjolfsson

09 Sep 2011

TL;DR: In this paper, the authors estimate the consumer surplus from IT investments by integrating the area under the demand curve for IT and find that the value created for consumers from spending on IT is about three times as large as the amount paid to producers.

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Abstract: Over the past decade, American businesses have invested heavily in information technology (IT) hardware Unfortunately, it has been difficult to assess the benefits that have resulted One reason is that managers often buy IT to enhance customer value in ways that are largely ignored in conventional output statistics Furthermore, because of competition, firms may be unable to capture the full benefits of the value they create This undermines researchers' attempts to determine IT value by estimating its contribution to industry productivity or to company profits and revenues An alternative approach is to estimate the consumer surplus from IT investments by integrating the area under the demand curve for IT This methodology does not directly address the question of whether managers and consumers are purchasing the optimal quantity of IT, but rather assumes their revealed willingness-to-pay for IT is an accurate indicator of their preferences Using data from the US Bureau of Economic Analysis, we estimate four measures of consumer welfare, including Marshallian surplus, exact surplus based on compensated (Hicksian) demand curves, a non-parametric estimate, and a value based on the theory of index numbers Interestingly, all four estimates indicate that in our base year of 1987, IT spending generated approximately $50 billion to $70 billion in net value in the US Our estimates imply that the value created for consumers from spending on IT is about three times as large as the amount paid to producers of IT equipment, providing a new perspective on the IT value debate

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251 citations

Journal Article•DOI•

The Contribution of Information Technology to Consumer Welfare

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Erik Brynjolfsson¹•Institutions (1)

Massachusetts Institute of Technology¹

01 Sep 1996-Information Systems Research

TL;DR: Four measures of consumer welfare are estimated, including Marshallian surplus, exact surplus based on compensated (Hicksian) demand curves, a non-parametric estimate, and a value based on the theory of index numbers, implying that the value created for consumers from spending on IT is about three times as large as the amount paid to producers of IT equipment.

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Abstract: Over the past two decades, American businesses have invested heavily in information technology IT hardware. Managers often buy IT to enhance customer value in ways that are poorly measured by conventional output statistics. Furthermore, because of competition, firms may be unable to capture the full benefits of the value they create. This undermines researchers' attempts to determine IT value by estimating its contribution to industry productivity or to company profits and revenues. An alternative approach estimates the consumers' surplus from IT investments by integrating the area under the demand curve for IT. This methodology does not directly address the question of whether managers and consumers are purchasing the optimal quantity of IT, but rather assumes their revealed willingness-to-pay for IT accurately reflects their valuations. Using data from the U.S. Bureau of Economic Analysis, we estimate four measures of consumers' surplus, including Marshallian surplus, Exact surplus based on compensated Hicksian demand curves, a “nonparametric” estimate, and a value based on the theory of index numbers. Interestingly, all four estimates indicate that in our base year of 1987, IT spending generated approximately $50 billion to $70 billion in net value in the United States and increased economic growth by about 0.3% per year. According to our estimates, which are likely to be conservative, IT investments generate approximately three times their cost in value for consumers.

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232 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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...For example, Brynjolfsson (1993) argued that there could be a time lag between when IT investments are made and when payoffs from IT investments are realized....
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...Even though firms have increased their IT spending considerably, the impact of IT investments on key operational and business performance variables remain tenuous (Brynjolfsson, 1996; Peslak, 2005)....
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Journal Article•DOI•

Analyzing cost-effectiveness of organizations: the impact of information technology spending

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Sabyasachi Mitra, Antoine Karim Chaya

01 Sep 1996-Journal of Management Information Systems

TL;DR: This research analyzes a data set containing the information technology budgets of over 400 large and medium-sized U.S. corporations and finds that higher IT investments are associated with lower average production costs, lower average total costs, and higher average overhead costs.

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Abstract: The performance impacts of information technology (IT) investments in organizations have received considerable attention in recent years. In this research, we investigate the cost factors that are affected by such investments. We analyze a data set containing the information technology budgets of over 400 large and medium-sized U.S. corporations. We find that higher IT investments are associated with lower average production costs, lower average total costs, and higher average overhead costs. We also find that larger companies spend more on information technology as a percentage of their revenues than smaller companies. We do not find any evidence that information technology reduces labor costs in organizations. We explain our findings, which are often counterintuitive but interesting, using basic microeconomic theory of the firm.

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224 citations

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

...For example, Mitra and Chaya (1996) found that higher IT investments are linked with lower average total cost of operations....
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...For example, Mitra and Chaya (1996) found that larger firms spend more on IT than smaller firms....
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Journal Article•DOI•

Linking Perceived Quality and Customer Satisfaction to Store Traffic and Revenue Growth

[...]

Emin Babakus¹, Carol C. Bienstock², James R. Van Scotter³•Institutions (3)

University of Memphis¹, Radford University², College of Business Administration³

01 Nov 2004-Decision Sciences

TL;DR: In this paper, the effects of perceived merchandise and service quality, relative to competition, on retail store performance were investigated using store traffic and revenue growth as outcome variables, and a model was proposed and tested using aggregate customer data and store performance outcomes from a group of stores owned by a national retail organization.

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Abstract: Effects of perceived merchandise and service quality, relative to competition, on retail store performance are investigated using store traffic and revenue growth as outcome variables. A model is proposed and tested using aggregate customer data and store performance outcomes from a group of stores owned by a national retail organization. Results suggest that both service and merchandise quality exert significant influence on store performance, measured by sales growth and customer growth, and their impact is mediated by customer satisfaction. Implications of the results and future research directions are discussed.

...read moreread less

218 citations