An evaluative framework for research on the performance effects of information technology investment
ICIS '89 Proceedings of the tenth international conference on Information Systems
The productivity paradox of information technology
Communications of the ACM
An empirical study of the relationship between information technology investment and corporate productivity
Evaluating Componentized Enterprise Information Technologies: A Multiattribute Modeling Approach
Information Systems Frontiers
A Process-Centered IT ROI Analysis with a Case Study
Information Systems Frontiers
Information and Management
Information Technology Investment Strategies Under Declining Technology Cost
Journal of Management Information Systems
Analyzing Complementarities Using Software Stacks for Software Industry Acquisitions
Journal of Management Information Systems
Information Processing Design Choices, Strategy, and Risk Management Performance
Journal of Management Information Systems
A Study of the Value and Impact of B2B E-Commerce: The Case of Web-Based Procurement
International Journal of Electronic Commerce
Journal of Management Information Systems
Information and Management
An empirical study of IT as a factor of production: The case of Net-enabled IT assets
Information Systems Frontiers
Journal of Management Information Systems
IT/IS implementation risks and their impact on firm performance
International Journal of Information Management: The Journal for Information Professionals
Evaluating the impact of IT investments on productivity: a causal analysis at industry level
International Journal of Information Management: The Journal for Information Professionals
Thirst for Business Value of Information Technology
International Journal of Technology Diffusion
Information Resources Management Journal
The Institutionalization of IT Budgeting: Empirical Evidence from the Financial Sector
Information Resources Management Journal
Improvement in Operational Efficiency Due to ERP Systems Implementation: Truth or Myth?
Information Resources Management Journal
The Impact of Information Technology Internal Controls on Firm Performance
Journal of Organizational and End User Computing
International Journal of IT/Business Alignment and Governance
XBRL: A New Global Paradigm for Business Financial Reporting
Journal of Global Information Management
XBRL: A New Global Paradigm for Business Financial Reporting
Journal of Global Information Management
The impact of XBRL adoption in PR China
Decision Support Systems
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There have been several attempts in the past to assess the impact of information technology on firm performance that have yielded conflicting results. Researchers have been unable to conclude that IT spending by an organization results in increases in key performance indicators. Two major recent studies have attempted to address the issue by putting greater emphasis on the theoretical underpinnings of the solution to the problem, although they chose different theoretical frameworks. The present study extends that work to yield a framework that shows the relationship between firm performance and both IT and corporate investments. The data used to validate the framework exceeds that used in previous analyses in both quality and quantity, thereby permitting appropriate statistical analyses. A large database consisting of over 2,000 observations of 624 firms was constructed, using data provided by the International Data Corporation, Standard & Poor's Compustat, and Moody's. This allowed us to pose the following research questions: (a) Can the relationship between sets of investment measures and firm performance be demonstrated (as opposed to individual measures)? (b) How are IT investments related to a firm's market value, market share, sales, and assets? and (c) Is there a difference in the effect of computer capital and noncomputer capital?Seven measures of firm performance were initially incorporated as outputs in the framework, related to sales, assets, and market value. Similarly, seven input measures of IT and corporate investments were initially included. Two output measures and one input were eventually eliminated to formulate a refined framework with strong explanatory power. After careful editing, canonical analyses were performed, resulting in several important findings. Both IT and corporate investments have a strong positive relationship with sales, assets, and equity, but not with net income. Spending on IS staff and staff training is positively correlated with firm performance, even more so than computer capital.