IT capabilities: theoretical perspectives and empirical operationalization
ICIS '99 Proceedings of the 20th international conference on Information Systems
ICIS '00 Proceedings of the twenty first international conference on Information systems
ICIS '00 Proceedings of the twenty first international conference on Information systems
Communications of the ACM
Journal of Computer Security - IFIP 2000
Does the market recognize IT-enabled competitive advantage?
Information and Management
European Journal of Information Systems - Managing e-business transformation
An empirical examination of a process-oriented IT business success model
Information Technology and Management
The impact of information technology on the financial performance of diversified firms
Decision Support Systems - Special issue: Economics and information systems
IT valuation in turbulent times
The Journal of Strategic Information Systems
Value Implications of Investments in Information Technology
Management Science
Reexamining the Value Relevance of E-Commerce Initiatives
Journal of Management Information Systems
Journal of Management Information Systems
Information Technology as an Enabler of Growth in Firms: An Empirical Assessment
Journal of Management Information Systems
Systems Design, Process Performance, and Economic Outcomes in International Banking
Journal of Management Information Systems
Development and Validation of a Perceptual Instrument to Measure E-Commerce Performance
International Journal of Electronic Commerce
Can information technology enable profitable diversification? An empirical examination
Journal of Engineering and Technology Management
Journal of Management Information Systems
Changes in MIS research: status and themes from 1989 to 2000
International Journal of Information Systems and Change Management
What makes the competitive contribution of ERP strategic
ACM SIGMIS Database
Information Technology and Management
Information Systems Research
Journal of Management Information Systems
A model of Service-Oriented Architecture and firm/network performance
International Journal of Information Technology and Management
The impact of information technology on the financial performance of diversified firms
Decision Support Systems - Special issue: Economics and information systems
Competitive Environment and the Relationship Between IT and Vertical Integration
Information Systems Research
The strategic value of IT insourcing: An IT-enabled business process perspective
The Journal of Strategic Information Systems
Changing the Competitive Landscape: Continuous Innovation Through IT-Enabled Knowledge Capabilities
Information Systems Research
Measuring enterprise IT capability: A total IT capability perspective
Knowledge-Based Systems
Learning processes in municipal broadband projects: An absorptive capacity perspective
Telecommunications Policy
IT workforce planning: a modular design science approach
Proceedings of the 49th SIGMIS annual conference on Computer personnel research
Information Technology and Firm Boundaries: Impact on Firm Risk and Return Performance
Information Systems Research
An elusive antecedent of superior firm performance: The knowledge management factor
Decision Support Systems
Organizational Learning and Capabilities for Onshore and Offshore Business Process Outsourcing
Journal of Management Information Systems
Productivity and Performance Effects of Business Process Reengineering: A Firm-Level Analysis
Journal of Management Information Systems
IT assets, organization capital and market power: Contributions to business value
Decision Support Systems
Do green supply chain management initiatives impact stock prices of firms?
Decision Support Systems
Information technology and organizational capabilities: A longitudinal study of the apparel industry
Decision Support Systems
Information Technology and Trademarks: Implications for Product Variety
Management Science
Resolving uncertainty and creating value from the exercise of e-commerce investment options
Information Systems Journal
International Journal of Information Management: The Journal for Information Professionals
Information technology (IT) investment and the role of a firm: an exploratory study
International Journal of Information Management: The Journal for Information Professionals
Are New IT-Enabled Investment Opportunities Diminishing for Firms?
Information Systems Research
A Framework Using ITIM to Guide IT Investments by State Governments
International Journal of Strategic Information Technology and Applications
A Lag Effect of IT Investment on Firm Performance
Information Resources Management Journal
Contrasting IT Capability and Organizational Types: Implications for Firm Performance
Journal of Organizational and End User Computing
The Effects of Investments in Information Technology on Firm Performance: An Investor Perspective
Journal of Information Technology Research
Organizational Learning and Capabilities for Onshore and Offshore Business Process Outsourcing
Journal of Management Information Systems
Journal of Management Information Systems
International Journal of Strategic Information Technology and Applications
Finding the Role of Time Lags in Radio Frequency Identification Investment
International Journal of Strategic Information Technology and Applications
Does Knowledge Management Matter? The Empirical Evidence from Market-Based Valuation
ACM Transactions on Management Information Systems (TMIS)
Market Value Impacts of Information Technology Enabled Supply Chain Management Initiatives
Information Resources Management Journal
How do competitive environments moderate CRM value?
Decision Support Systems
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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.