Asset stock accumulation and sustainability of competitive advantage
Management Science
Strategic information technology management
Technology investment and business performance
Communications of the ACM
The substitution of information technology for other factors of production: a Firm Level Analysis
Management Science - Special issue: Frontier research on information systems and economics
Information Technology Effects on Firm Performance As Measured by Tobin's Q
Management Science
Communications of the ACM
Information technology and economic performance: A critical review of the empirical evidence
ACM Computing Surveys (CSUR)
Information Systems Research
Executives' perceptions of the business value of information technology: a process-oriented approach
Journal of Management Information Systems - Special issue: Impacts of information technology investment on organizational performance
Analyzing cost-effectiveness of organizations: the impact of information technology spending
Journal of Management Information Systems - Special section: Strategic and competitive information systems
Understanding the Impact of Collaboration Software on Product Design and Development
Information Systems Research
Toward a theory to study the use of collaborative product commerce for product development
Information Technology and Management
Special Section: Customer-Centric Information Systems
Journal of Management Information Systems
Journal of Management Information Systems
Economics and Electronic Commerce: Survey and Directions for Research
International Journal of Electronic Commerce
Investment in Enterprise Resource Planning: Business Impact and Productivity Measures
Journal of Management Information Systems
Industry Level Supplier-Driven IT Spillovers
Management Science
Manufacturing & Service Operations Management
IS Application Capabilities and Relational Value in Interfirm Partnerships
Information Systems Research
Learning to build an IT innovation platform
Communications of the ACM - A Blind Person's Interaction with Technology
From Association to Causation via a Potential Outcomes Approach
Information Systems Research
Information Systems Research
Information Technology and Firm Boundaries: Impact on Firm Risk and Return Performance
Information Systems Research
Organizational Learning and Capabilities for Onshore and Offshore Business Process Outsourcing
Journal of Management Information Systems
Research Note---Returns to Information Technology Outsourcing
Information Systems Research
Information Technology and Intangible Output: The Impact of IT Investment on Innovation Productivity
Information Systems Research
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Do information technology investments improve firm profitability? If so, is this effect because such investments help improve sales, or is it because they help reduce overall operating expenses? How does the effect of IT on profitability compare with that of advertising and of research and development? These are important questions because investments in IT constitute a large part of firms' discretionary expenditures, and managers need to understand the likely impacts and mechanisms to justify and realize value from their IT and related resource allocation processes. The empirical evidence in this paper, derived using archival data from 1998 to 2003 for more than 400 global firms, suggests that IT has a positive impact on profitability. Importantly, the effect of IT investments on sales and profitability is higher than that of other discretionary investments, such as advertising and R&D. A significant portion of the impact of IT on firm profitability is accounted for by IT-enabled revenue growth, but there is no evidence for the effect of IT on profitability through operating cost reduction. Taken together, these findings suggest that firms have had greater success in achieving higher profitability through IT-enabled revenue growth than through IT-enabled cost reduction. They also provide important implications for managers to make allocations among discretionary expenditures such as IT, advertising, and R&D. With regard to IT expenditures, the results imply that firms should accord higher priority to IT projects that have revenue growth potential over those that focus mainly on cost savings.