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1 – 10 of over 163000Marc J. Epstein and Adriana Rejc Buhovac
The pressure to remain competitive in a dynamic, global economy forces organizations to consider the results-based approach when deciding on investments in information technology …
Abstract
The pressure to remain competitive in a dynamic, global economy forces organizations to consider the results-based approach when deciding on investments in information technology (IT). Senior IT managers are convinced that they do create value and believe that if measured properly and with adequate support, they would be significant profit centers for their organizations. However, without adequate performance evaluation systems they have difficulties proving the value-adding role of IT and find themselves continually fighting for and justifying the resources that are needed. The article provides a model and a methodology for evaluating performance in IT to help chief information officers (CIOs) better justify and evaluate their initiatives and aid CEOs and CFOs in making better resource allocation decisions. The IT Contribution Model and the subsequent IT Payoff Methodology is illustrated by and empirically tested in Istrabenz Group, an international group engaged in food, investments, tourism, and energy. The study shows that the methodology's requirement for active employee involvement in the identification of the critical drivers of success, the expected outputs of the IT initiative, in particular, substantially facilitates the IT initiative implementation by increasing the level of understanding and acceptance.
Bharati Mohapatra, Sanjana Mohapatra and Sanjay Mohapatra
Wenqing Wu, Pianpian Zhang and Sang-Bing Tsai
Previous studies have shown that the application of information technology (IT) can help break through the innovation boundaries of firms and has undoubtedly become a key enabler…
Abstract
Purpose
Previous studies have shown that the application of information technology (IT) can help break through the innovation boundaries of firms and has undoubtedly become a key enabler of collaborative innovation. These studies, however, are mainly based on theoretical analysis and case studies, and little is empirically known about the relationship between IT investments and collaborative innovation. Therefore, the purpose of this study is to empirically explore how firms' IT investments affect the firms' collaborative innovation performance. The authors also examine the moderating roles of the top management team's (TMT's) educational background and absorptive capacity in this relationship.
Design/methodology/approach
The authors collected data on 2,097 listed Chinese manufacturing companies and used the ordinary least squares (OLS) method to perform regression analysis. In addition, the authors conducted robustness tests using the propensity score matching (PSM) method and the instrumental variable method.
Findings
The results show that the relationship between IT investments and collaborative innovation is inverted, U-shaped and curvilinear. In addition, the TMT's educational background and absorptive capacity positively moderate the inverted U-shaped relationship between IT investments and collaborative innovation.
Originality/value
The study's findings on the relationship between IT investments and collaborative innovation differ from previous mainstream findings that recognized a positive linear relationship. The authors' findings deepen the understanding of the dual role of IT investments. Moreover, this research helps expand the contingency perspective in IT investments and collaborative innovation research.
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Amarjit Gill, Parminder Kang and Afshin Amiraslany
This study aims to test the relationship between information technology investment (IT_INVEST) and working capital management (WCM) efficiency.
Abstract
Purpose
This study aims to test the relationship between information technology investment (IT_INVEST) and working capital management (WCM) efficiency.
Design/methodology/approach
This study utilized a survey research design to collect data from micro, small and medium enterprises (MSMEs) owners in India.
Findings
Empirical results show that perceived IT_INVEST plays a role in improving WCM efficiency by decreasing the inventory holding period and reducing the cash conversion cycle (CCC) in India. A three-stage least square model (3SLS) shows that IT_INVEST decreases CCC directly and indirectly through the inventory holding period, accounts receivable period and accounts payable period. The empirical analysis also shows that IT_INVEST decreases the inventory holding period and CCC by 16.80% and 26.40%, respectively, for the examined firms.
Research limitations/implications
If MSMEs' owners perceive a higher level of IT_INVEST, then the owners perceive a higher WCM efficiency and vice versa.
Originality/value
This study contributes to the literature on the relationship between IT_INVEST and WCM efficiency. This study may encourage further studies of IT investment and WCM efficiency using data from other industries and countries. MSME owners may find empirical results beneficial to improve WCM efficiency. Moreover, financial management consultants may find results helpful to provide consulting services.
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Ranjit Bose and Xin (Robert) Luo
– The purpose of this study is to propose to use the economic value added to measure firm performance against information security investments.
Abstract
Purpose
The purpose of this study is to propose to use the economic value added to measure firm performance against information security investments.
Design/methodology/approach
The authors develop a conceptual framework to capture non information technology (IT)-related and IT-related security investment factors and propose to study their holistic influences on firm performance.
Findings
The authors propose 14 propositions to understand the relationship between security investments and firm performance.
Research limitations/implications
The authors propose a validation process to guide future research to further empirically capture all needed data and analyze the proposed relationships.
Practical implications
Managers can view security investment from a more comprehensive perspective and understand how to potentially contribute each of the non IT-related and IT-related factors to firm performance.
Originality/value
This is one of the early attempts studying information security investment vs firm performance from a comprehensive conceptual angel.
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Mohammad Tahir Sabit Haji Mohammad
This paper aims to present an alternative to current banking systems. The purpose of the paper is the optimisation of the concept of cash waqf and its management in the framework…
Abstract
Purpose
This paper aims to present an alternative to current banking systems. The purpose of the paper is the optimisation of the concept of cash waqf and its management in the framework of a waqf bank and its viability.
Design/methodology/approach
The study is doctrinal and empirical. Several assumptions concerning the structure and operation of the bank are made, surveyed and descriptively analysed.
Findings
The concept of cash waqf could be used for the operation of a waqf bank. There was a tendency among the given group of practitioners towards a corporate international social bank, capitalised by the waqf and non-waqf assets, sought after from the public and private sectors, as well as the Muslims and non-Muslims.
Research limitations/implications
Assumptions are basic. Empirical findings are based on the perspective of waqf trustees. Other stakeholders’ perspectives need further research.
Practical implications
The study is expected to persuade for, and assist in the establishment of a waqf bank.
Social implications
This paper could contribute to the effectiveness of waqf institutions in their delivery of public good to the poor and society. These implications are not restricted to a specific country. Charities and the poor of any society may benefit from this study if the idea of total social banking is upheld.
Originality/value
This study is the first to address the structure and operation of a waqf bank empirically.
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Stan Maklan, Joe Peppard and Philipp Klaus
The purpose of this paper is to examine the conundrum between the increasingly importance of investments in new information technologies (IT) on marketing practice and marketing…
Abstract
Purpose
The purpose of this paper is to examine the conundrum between the increasingly importance of investments in new information technologies (IT) on marketing practice and marketing scholars continuing to question the profitability of IT-led marketing initiatives.
Design/methodology/approach
Systematic reviews of the relevant literature on the financial and market return of customer relationship management (CRM) investments from both Marketing and Information Systems (IS) literature were conducted.
Findings
Findings suggest that, while both IS and Marketing scholars try to determine what generates returns on CRM investment, the IS community has a more complete conceptualisation as to how these returns are realised. A broader epistemological framework, better suited to observing how organisations benefit from IT-led management initiatives, enables a more comprehensive assessment of CRM investment.
Research limitations/implications
Supplementing the methods used by Marketing scholars with those frequently used in IS research would likely improve the assessment of IT-led Marketing investments and the resultant prescriptions for Marketing practitioners.
Practical implications
Failure to assess accurately the return from IT-led Marketing investments hinders managers’ ability to manage them for maximum performance improvements, all the more important now that organisations are preparing for large-scale investments in big data and social media strategies.
Originality/value
This paper is the first to illustrate how a combination of Marketing and IS scholarship can assist Marketing research and practice.
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Jing Fang, Xiaowei Liu and Wen Guang Qu
Prior IT productivity research usually assumes constant returns on IT investment. This study suggests that the impact of IT investment on productivity may not be constant but may…
Abstract
Purpose
Prior IT productivity research usually assumes constant returns on IT investment. This study suggests that the impact of IT investment on productivity may not be constant but may change with the IT investment scale and over time. Specifically, we divide IT investment into commercial IT and in-house IT and investigate their changing impacts on industry labor productivity.
Design/methodology/approach
A model of the productivity impacts of commercial IT and in-house IT with changing effects of scale and over time is developed and empirically tested based on industry-level panel data from the US. Bureau of Economic Analysis (BEA).
Findings
The returns on commercial IT investment increase with scale but decrease over time, while the returns on in-house IT increase over time.
Originality/value
This study provides a new perspective for IT productivity research by investigating the changing productivity impacts of IT investment. It also suggests that commercial IT and in-house IT should be distinguished, as they have different impacts on productivity.
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The focus of this article is upstream relational capital, the intangible value of a firm's business relations with its suppliers. The paper aims to propose and test a valuation…
Abstract
Purpose
The focus of this article is upstream relational capital, the intangible value of a firm's business relations with its suppliers. The paper aims to propose and test a valuation model of an organization's upstream relational capital that incorporates the leveraging impact of IT investments.
Design/methodology/approach
A survey was carried out of 159 CEOs in the wireless telecommunication industry.
Findings
Evidence suggests that IT and non‐IT factors contribute to explain abnormal return on relational investments.
Research limitations/implications
This exploratory study is based on a single industry and relational capital is valued by CEO using psychometric scales.
Practical implications
This study shows how IT‐related information helps external investors to value a firm's upstream relationship capital and hence assess the impact of interorganizational IT investments on the firm's valuation.
Originality/value
These results militate for more transparency in regard to relational investments and the relational context of the firm in the management discussion section of the annual report.
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Ersem Karadag, Cihan Cobanoglu and Clay Dickinson
The purpose of this study is to examine and to compare the most utilized information technology (IT) investment decision methods between hotels with centrally managed IT, and…
Abstract
Purpose
The purpose of this study is to examine and to compare the most utilized information technology (IT) investment decision methods between hotels with centrally managed IT, and hotels with locally managed IT.
Design/methodology/approach
The empirical data were collected via a structured questionnaire from hotel managers in the USA.
Findings
The key findings of the research are that evaluation activities for hospitality IT investments have not been performed widely and consistently. Although sophisticated evaluation methods have been developed over the years, they do not appear to have provided a satisfactory answer to improve IT decision‐making practice. In this study, significant differences were found in how IT investments are evaluated in hotels with centrally managed IT as compared to hotels with locally managed IT. The hotels with centrally managed IT tend to use more financial and non‐financial evaluation methods since all investments are expected to show a positive return on investment.
Practical implications
The research findings highlight the importance of the use of IT investment evaluation techniques in hotels and the major differences between hotels with centrally and locally managed IT.
Originality/value
The literature on IT investment evaluation methods in the lodging industry is limited. Being one of the first studies in this area, these research findings are particularly valuable for practitioners and researchers.
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