Enhancing customer value through IT investments: a NEBIC perspective

Authors:
Kevin E. Dow;Gary Hackbarth;Jeff Wong
Affiliations:
Kent State University;Iowa State University;University of Nevada, Reno
Venue:
ACM SIGMIS Database
Year:
2006

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Abstract

The Net-Enabled Business Innovation Cycle (NEBIC) is a holistic theory that describes a pathway firms may use to leverage net-enablement. We assert that the strategic information system role constructs used in past studies are related to the stages found in the NEBIC. This suggests that information technology announcement studies should consider the role of net-enablement in creating customer value. We use the event study methodology to test the market's reaction to 298 announcements of technology investments that correspond to different information technology role constructs and the related NEBIC stages. Our findings suggest that customer value is added to firms through the value creation process described by the NEBIC.