Mixed findings on IT capability and firm performance and their implications

Inmyung Choi; Joey F. George

Mixed findings on IT capability and firm performance and their implications

Inmyung Choi, Joey F. George

Business Administration

Research output: Contribution to conference › Paper › peer-review

2 Scopus citations

Abstract

Empirical testing for the positive association between information technology (IT) capability and firm performance has been a celebrated debate in IS research due to mixed findings; Bharadwaj (2000) and Santhanam and Hartono (2003) confirmed the positive impact of IT capability on firm performance, but Chae et al. (2014) suggested that there is no relationship between the IT capability and performance. Understanding what produces contradictory results is a timely and critical issue because a large body of the business value of IS research has employed IT capability as a key construct. This study examined the relationship by building multiple comparison groups in the same period. As a result, contrary to findings by Chae et al. (2014), this research indicated that IT capability had a significant impact on a firm's financial performance.

Original language	English
State	Published - 2016
Event	22nd Americas Conference on Information Systems: Surfing the IT Innovation Wave, AMCIS 2016 - San Diego, United States Duration: Aug 11 2016 → Aug 14 2016

Conference

Conference	22nd Americas Conference on Information Systems: Surfing the IT Innovation Wave, AMCIS 2016
Country/Territory	United States
City	San Diego
Period	08/11/16 → 08/14/16

Keywords

Firm performance
IT capability
Information week 500
Replication study
The business value of IT

Cite this

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abstract = "Empirical testing for the positive association between information technology (IT) capability and firm performance has been a celebrated debate in IS research due to mixed findings; Bharadwaj (2000) and Santhanam and Hartono (2003) confirmed the positive impact of IT capability on firm performance, but Chae et al. (2014) suggested that there is no relationship between the IT capability and performance. Understanding what produces contradictory results is a timely and critical issue because a large body of the business value of IS research has employed IT capability as a key construct. This study examined the relationship by building multiple comparison groups in the same period. As a result, contrary to findings by Chae et al. (2014), this research indicated that IT capability had a significant impact on a firm's financial performance.",

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AU - Choi, Inmyung

AU - George, Joey F.

PY - 2016

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N2 - Empirical testing for the positive association between information technology (IT) capability and firm performance has been a celebrated debate in IS research due to mixed findings; Bharadwaj (2000) and Santhanam and Hartono (2003) confirmed the positive impact of IT capability on firm performance, but Chae et al. (2014) suggested that there is no relationship between the IT capability and performance. Understanding what produces contradictory results is a timely and critical issue because a large body of the business value of IS research has employed IT capability as a key construct. This study examined the relationship by building multiple comparison groups in the same period. As a result, contrary to findings by Chae et al. (2014), this research indicated that IT capability had a significant impact on a firm's financial performance.

AB - Empirical testing for the positive association between information technology (IT) capability and firm performance has been a celebrated debate in IS research due to mixed findings; Bharadwaj (2000) and Santhanam and Hartono (2003) confirmed the positive impact of IT capability on firm performance, but Chae et al. (2014) suggested that there is no relationship between the IT capability and performance. Understanding what produces contradictory results is a timely and critical issue because a large body of the business value of IS research has employed IT capability as a key construct. This study examined the relationship by building multiple comparison groups in the same period. As a result, contrary to findings by Chae et al. (2014), this research indicated that IT capability had a significant impact on a firm's financial performance.

KW - Firm performance

KW - IT capability

KW - Information week 500

KW - Replication study

KW - The business value of IT

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M3 - Paper

AN - SCOPUS:84987653466

T2 - 22nd Americas Conference on Information Systems: Surfing the IT Innovation Wave, AMCIS 2016

Y2 - 11 August 2016 through 14 August 2016

ER -

Mixed findings on IT capability and firm performance and their implications

Abstract

Conference

Keywords

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