Strategic factor markets: expectations, luck, and business strategy
Management Science
The growing risks of information systems success
MIS Quarterly
Sustaining IT advantage: the role of structural differences
MIS Quarterly - Special issue on the strategic use of information systems
The productivity paradox of information technology
Communications of the ACM
Information Technology Effects on Firm Performance As Measured by Tobin's Q
Management Science
Information Systems Research
Information Systems Research
Does IT Matter? Information Technology and the Corrosion of Competitive Advantage
Does IT Matter? Information Technology and the Corrosion of Competitive Advantage
Investment in Enterprise Resource Planning: Business Impact and Productivity Measures
Journal of Management Information Systems
International Journal of Electronic Commerce
The end of the information system life: a model of is discontinuance
ACM SIGMIS Database
Journal of Theoretical and Applied Electronic Commerce Research
IT assets, organization capital and market power: Contributions to business value
Decision Support Systems
Empirical research on information technology value
International Journal of Networking and Virtual Organisations
Are New IT-Enabled Investment Opportunities Diminishing for Firms?
Information Systems Research
Research Note---Using Real Options to Investigate the Market Value of Virtual World Businesses
Information Systems Research
Journal of Management Information Systems
The role of R&D and corporate governance in Korea: IT firms versus non-IT firms
Information Technology and Management
International Journal of IT/Business Alignment and Governance
How do competitive environments moderate CRM value?
Decision Support Systems
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The year 2000 (Y2K) countdown provided a uniquely visible instance of spending on information technology (IT) by U.S. companies. With public attention riveted on potential Y2K malfunctions, managers were forced to evaluate their IT and make decisions about whether to modify or replace existing systems. In the aftermath of Y2K, critics charged that the problem was overblown and that companies overspent on IT. In contrast, we posit in this paper that efforts companies made to renew and upgrade their IT may have positioned them to take advantage of new e-business applications. As Y2K approached, managers could invest opportunistically in IT, which would enable them to connect with customers and suppliers in new ways. Contrary to the alleged overspending, we find that firm value increased, on average, with Y2K spending by Fortune 1000 companies. In particular, higher firm value and subsequent earnings were associated with Y2K spending for firms in industries where IT was considered to have a transforming influence---altering traditional ways of doing business by redefining business processes and relationships. We also test whether the positive association between firm value and Y2K spending diminished with Y2K spending by industry peer firms, but we do not find support for this relative investment hypothesis.