Financial impact of information processing
Journal of Management Information Systems
Does information technology lead to smaller firms?
Management Science
Information Technology Effects on Firm Performance As Measured by Tobin's Q
Management Science
Information technology value through different normative lenses
Journal of Management Information Systems - Special issue: Impacts of information technology investment on organizational performance
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
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
Strategic information systems and financial performance
Journal of Management Information Systems - Special section: Navigation in information-intensive environments
Journal of Management Information Systems
Journal of Management Information Systems
Investment in Enterprise Resource Planning: Business Impact and Productivity Measures
Journal of Management Information Systems
Using Enterprise Architecture Standards in Managing Information Technology
Journal of Management Information Systems
Information Technology, Production Process Outsourcing, and Manufacturing Plant Performance
Journal of Management Information Systems
Suitability of self-organising maps for analysing a macro-environment an empirical field survey
International Journal of Business Information Systems
Journal of Management Information Systems
IT outsourcing and firm-level performance: A transaction cost perspective
Information and Management
Differential Effects of the Two Types of Information Systems: A Hospital-Based Study
Journal of Management Information Systems
Information technology and productivity: Empirical evidence from the Chinese electronics industry
Information and Management
Influence of Industry Characteristics on Information Technology Outsourcing
Journal of Management Information Systems
Journal of Management Information Systems
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This research provides empirical evidence of the role of information technology (IT) as an enabler of growth in firms. We postulate that as a firm grows larger, a superior IT infrastructure increases the productivity of other inputs by controlling the complexity-related costs that the firm incurs as it increases in size. In the empirical analysis to support this view, we find that firms with high-growth expectations increase their IT spending as their free cash flow increases, whereas low-growth firms maintain a constant level of IT spending, irrespective of their free cash flow. Further, we analyze the effect of IT investments in one period on growth-related metrics in subsequent periods. We find that a superior IT infrastructure significantly reduces the cost of operations for high-growth firms in subsequent periods. In summary, the theory and empirical evidence presented in this paper point to an indirect but important contribution of the IT infrastructure to a firm's growth.