Agribusiness and Information Management

Korean Society of Food and Agricultural Information Science (한국농식품정보과학회)
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Impact of ICT Investment on Agricultural Sector: Analysis of Korean Corporations Based on IT Portfolio Framework

  • Lee, Dongmin (Program in Regional Information, Seoul National University) ;
  • Kang, Chunghan (Program in Regional Information, Seoul National University) ;
  • Moon, Junghoon (Program in Regional Information, Seoul National University) ;
  • Rhee, Cheul (Department of e-business School of Business Administration, Ajou University)
  • Received : 2016.11.01
  • Accepted : 2016.11.14
  • Published : 2016.12.20
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Abstract

In several industries, including the agriculture industry, information and communication technology (ICT) expenditure has been gradually increasing. This study explores the ICT investment of Korean agricultural corporations, and examines the effect of ICT investment on their profitability using an IT portfolio framework. As the organizational capabilities and environment in which ICT is used is critical in examining its impact, the IT-savvy level is used as a moderator. An increase in ICT investment size results in a significantly positive effect on profitability in organizations with higher IT-savvy levels, whereas there is no effect in organizations with lower IT-savvy levels. This study shows the necessity of understanding the structure of ICT investments in the agriculture industry, and suggests the importance of organizational capabilities and environment in making best use of ICT.

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References

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