Assessing the importance of industry in the adoption and assimilation of IT: Evidence from Italian enterprises

  • Authors:
  • Paolo Neirotti;Emilio Paolucci

  • Affiliations:
  • Politecnico di Torino, Department of Production Systems and Business Economics, corso Duca degli Abruzzi, 24, 10129 Turin, Italy;Politecnico di Torino, Department of Production Systems and Business Economics, corso Duca degli Abruzzi, 24, 10129 Turin, Italy

  • Venue:
  • Information and Management
  • Year:
  • 2011

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Abstract

We analysed the role of industry in determining the diffusion and business value created by IT. Data was collected for this purpose by surveying 192 large enterprises in Italy. Our research revealed three findings. First, in the material services and non-hi-tech manufacturing industries, firms had a relatively limited adoption of IT, resulting in little business impact. Second, firms' IT spending behaviour depended on their industry type and not on their IT capabilities. However their capabilities were more important than industry in explaining why firms achieved benefits from IT adoption that depended on the previous accumulation of IT resources and other capabilities. Third, industry type determined the degree to which IT affected profitability and its effectiveness in helping firms to defend their competitive advantage. Specifically, the slower the adoption of IT in an industry, the greater its impact on the firm's profitability.The implications of these findings for managers and policy-makers are discussed.