DOI QR코드

DOI QR Code

The Study on the Relationships between IT Investments and Firm's Performance: The Differences According to the Levels of IS Strategic Applications and PEU

제조기업의 정보기술 투자와 기업 성과 간의 관계 연구: 전략적 활용 수준과 환경 불확실성에 따른 차이

  • Received : 2020.02.06
  • Accepted : 2020.04.10
  • Published : 2020.06.30

Abstract

Purpose This study empirically investigates the impact of information technology(IT) investments on the financial and non-financial performance of a manufacturing firm. We examined the interaction effects of IT investments and strategic applications levels of information systems(IS). This study also demonstrated the three-way interaction effects of IT investments, levels of IS strategic applications, and perceived environmental uncertainty(PEU). Design/methodology/approach For this study, empirical data were collected from 98 manufacturing firms with the structured questionnaires. The data were analyzed with multiple regression models, and partial derivatives were utilized to identify the directions of the impact. Findings From the empirical results, it was found that when both the levels of IS strategic applications and the degrees of IT investments are high, the ratios of the costs of goods sold to total sales(RCGS) and the labor costs to total sales(RLCS) are decreased, as it were, the performance of a firm is improved. However, it was observed that when the levels of strategic IS are low, the high degrees of IT investments do not contribute to the improvement of a performance. The results showed that when the levels of strategic IS are high, the high degrees of IT investments incur the high RSAE not low RSAE. When PEU is considered, the empirical results showed that under the low degrees of PEU, the IT investments under high levels of strategic IS applications (strategic IT investments) improve the performance, as it were, low RCGS, and high degrees of perceived financial and non-financial performance. However, under high PEU, it was observed that high degrees of strategic IT investments do not increase the performance. When PEU is high, the strategic IT investments reduce RSAE, and under low PEU, RSAE is increased.

Keywords

References

  1. 박동진, "ERP 시스템의 성과에 영향을 미치는 요인: 사용자 관점," 정보시스템연구, 제12권, 제1호, 2003, pp. 47-66.
  2. 정경수, 김상진, 송정희, "조직적 상황이 ERP시스템의 도입성과에 미치는 영향," 정보시스템연구, 제12권, 제1호, 2003, pp. 19-45.
  3. Berghout, E., and Tan, C., "Understanding the Impact of Business Cases on IT Investment Decision: An Analysis of Municipal E-government Projects," Information and Management, Vol.50, 2013, pp. 489-506. https://doi.org/10.1016/j.im.2013.07.010
  4. Briggs, O., and Nunnamaker, F., "Special Issue: Multiple Dimensions of Value in Information Systems," Journal of Management Information Systems, Vol.29, No.4, 2013, pp. 97-101. https://doi.org/10.2753/MIS0742-1222290403
  5. Chae, H., Koh, E., and Park, K., "Information Technology Capability and Firm Performance: Role of Industry," Information and Management, Vol.55, 2018, pp. 525-546. https://doi.org/10.1016/j.im.2017.10.001
  6. Chae, H., Koh, E., and Prybutok, R., "Information Technology Capability and Firm Performance: Contradictory Findings and Their Possible Causes," MIS Quarterly, Vol.38, 2014, pp. 305-326. https://doi.org/10.25300/MISQ/2014/38.1.14
  7. Chen, J., "The Synergistic Effects of IT-enabled Resources on Organizational Capabilities and Firm Performance," Information and Management, Vol.49, 2012, pp. 142-150. https://doi.org/10.1016/j.im.2012.01.005
  8. Chen, Q., Mocker, M., and Preston, S., "Information Technology Strategy: Re-conceptualization, Measurement and Implications," MIS Quarterly, Vol.34, 2010, pp. 233-259. https://doi.org/10.2307/20721426
  9. Choe, J., Lee, Y., and Park, K., "The Relationship Model between the Influence Factors and the Strategic Applications of Information Systems," European Journal of Information Systems, Vol.7, 1998, pp. 137-149. https://doi.org/10.1057/palgrave.ejis.3000297
  10. Clemons, K., Dewan, M., Kauffman, J., and Weber, A., "Understanding the Information-based Transformation of Strategy and Society," Journal of Management Information Systems, Vol.34, No.2, 2017, pp. 425-456. https://doi.org/10.1080/07421222.2017.1334474
  11. Dedrick, J., Kraemer, L., and Shih, E., "Information Technology and Productivity in Developed and Developing Countries," Journal of Management Information Systems, Vol.30, No.1, 2013, pp. 97-122. https://doi.org/10.2753/MIS0742-1222300103
  12. Ding, F., Li, D., and George, F., "Investigating the Effects of Strategic Leadership on Organizational Benefits from the Perspective of CIO Strategic Roles," Information and Management, Vol.51, 2014, pp. 865-879. https://doi.org/10.1016/j.im.2014.08.004
  13. Drnevich, L., and Croson, C., "Information Technology and Business-level Strategy: Toward an Integrated Theoretical Perspective," MIS Quarterly, Vol.37, 2013, pp. 483-509. https://doi.org/10.25300/MISQ/2013/37.2.08
  14. Giboney, S., Briggs, O., and Nunamaker, F., "Special Issue: Creating Social Value with Information," Journal of Management Information Systems, Vol.34, 2017, pp. 935-938. https://doi.org/10.1080/07421222.2017.1393302
  15. Gordon, L., and Narayanan, V., "Management Accounting Systems, Perceived Environmental Uncertainty and Organization Structure : An Empirical Investigation," Accounting, Organizations and Society, Vol.9, No.1, 1984, pp. 33-47. https://doi.org/10.1016/0361-3682(84)90028-X
  16. Gu, J., and Jung, H., "The Effects of IS Resources, Capabilities, and Qualities on Organizational Performance: An Integrated Approach," Information and Management, Vol.50, 2013, pp. 87-97. https://doi.org/10.1016/j.im.2013.02.001
  17. Gupta, A., and Govindarajan, V., "Business Unit Strategy, Managerial Characteristics, and Business Unit Effectiveness at Strategy Implementation," Academy of Management Journal, Vol.27, 1984, pp. 25-41. https://doi.org/10.2307/255955
  18. Han, K., Chang, Y., and Hahn, J., "Information Technology Spillover and Productivity: The Role of Information Technology Intensity and Competition," Journal of Management Information Systems, Vol.28, 2011, pp. 115-145. https://doi.org/10.2753/MIS0742-1222280105
  19. Kim, K., Mithas, S., and Kimbrough, M., "Information Technology Investments and Firm Risk across Industries: Evidence from the Bond Market," MIS Quarterly, Vol.41, 2017, pp. 1347-1367. https://doi.org/10.25300/MISQ/2017/41.4.15
  20. King, W., and Teo, T., "Facilitators and Inhibitors for the Strategic Use of Information Technology," Information and Management, Vol.27, 1994, pp. 71-87. https://doi.org/10.1016/0378-7206(94)90008-6
  21. Kohli, R., Devaraj, S., and Ow, T., "Does Information Technology Investment Influence A Firm's Market Value? A Case of Non-publicly Traded Healthcare Firms," MIS Quarterly, Vol.36, 2012, pp. 1145-1163. https://doi.org/10.2307/41703502
  22. Lee, S., Xiang, Y., and Kim, J., "Information Technology and Productivity: Empirical Evidence from the Chinese Electronic Industry," Information and Management, Vol.48, 2011, pp. 79-87. https://doi.org/10.1016/j.im.2011.01.003
  23. Lu, Y., and Ramamurthy, K., "Understanding the Link between Information Technology Capability and Organizational Agility: An Empirical Examination," MIS Quarterly, Vol.35, 2011, pp. 931-954. https://doi.org/10.2307/41409967
  24. Mithas, S., and Rust, T., "How Information Technology Strategy and Investments Influence Firm Performance: Conjecture and Empirical Evidence," MIS Quarterly, Vol.40, 2016, pp. 223-245. https://doi.org/10.25300/MISQ/2016/40.1.10
  25. Mithas, S., Tafti, A., Bardhan, I., and Goh, M., "Information Technology and Firm Profitability: Mechanisms and Empirical Evidence," MIS Quarterly, Vol.36, 2012, pp. 205-224. https://doi.org/10.2307/41410414
  26. Mitra, S., and Chaya, A., "Analyzing Cost-effectiveness of Organizations: The Impact of Information Technology Spending," Journal of Management Information Systems, Vol.13, No.2, 1996, pp. 29-57. https://doi.org/10.1080/07421222.1996.11518122
  27. Otim, S., Dow, E., Grover, V., and Wong, A., "The Impact of Information Technology Investments on Downside Risk of the Firm: Alternative Measurement of the Business Value of IT," Journal of Management Information Systems, Vol.29, No.1, 2012, pp. 159-193. https://doi.org/10.2753/MIS0742-1222290105
  28. Neirotti, P., and Raguseo, E., "On the Contingent Value of IT-based Capabilities for the Competitive Advantage of SMEs: Mechanisms and Empirical Evidence," Information and Management, Vol.54, 2017, pp. 139-153. https://doi.org/10.1016/j.im.2016.05.004
  29. Pan, G., Pan, S., and Lim, C., "Examining How Firms Leverage IT to Achieve Firm Productivity: RBV and Dynamic Capabilities Perspectives," Information and Management, Vol.52, 2015, pp. 401-412. https://doi.org/10.1016/j.im.2015.01.001
  30. Pang, M., Tafti, A., and Krishnan, M.S., "Information Technology and Administrative Efficiency in U.S. State Governments: A Stochastic Frontier Approach," MIS Quarterly, Vol.38, 2014, pp. 1079-1101. https://doi.org/10.25300/MISQ/2014/38.4.07
  31. Ren, F., and Dewan, S., "Industry-level Analysis of Information Technology Return and Risk: What Explains Variation?," Journal of Management Information Systems, Vol.32, No.2, 2015, pp. 71-103. https://doi.org/10.1080/07421222.2015.1063281
  32. Schoonhoven, C., "Problems with Contingency Theory: Testing Assumptions Hidden within the Language of Contingency Theory," Administrative Science Quarterly, Vol.26, 1981, pp. 349-377. https://doi.org/10.2307/2392512
  33. Tallon, P., and Pinsonneault, A., "Competing Perspectives on the Link between Strategic Information Technology Alignment and Organizational Agility: Insights from a Mediation Model," MIS Quarterly, Vol.35, 2011, pp. 463-486. https://doi.org/10.2307/23044052
  34. Wagner, H., Beimborn, D., and Weitzel, T., "How Social Capital Among Information Technology and Business Units Drives Operational Alignment and IT Business Value," Journal of Management Information Systems, Vol.31, No.1, 2014, pp. 241-271. https://doi.org/10.2753/mis0742-1222310110
  35. Wang, N., Liang, H., Zhong, W., Xue, Y., and Xiao, J., "Resource Structuring or Capability Building? An Empirical Study of the Business Value of Information Technology," Journal of Management Information Systems, Vol.29, 2012, pp. 325-367. https://doi.org/10.2753/MIS0742-1222290211