• Journal of Intelligence and Information Systems
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• v.19 no.1
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• pp.35-55
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• 2013

Information technology is a critical resource necessary for any company hoping to support and realize its strategic goals, which contribute to growth promotion and sustainable development. The selection of information technology and its strategic use are imperative for the enhanced performance of every aspect of company management, leading a wide range of companies to have invested continuously in information technology. Despite researchers, managers, and policy makers' keen interest in how information technology contributes to organizational performance, there is uncertainty and debate about the result of information technology investment. In other words, researchers and managers cannot easily identify the independent factors that can impact the investment performance of information technology. This is mainly owing to the fact that many factors, ranging from the internal components of a company, strategies, and external customers, are interconnected with the investment performance of information technology. Using an agent-based simulation technique, this research extracts factors expected to affect investment performance on information technology, simplifies the analyses of their relationship with economic modeling, and examines the performance dependent on changes in the factors. In terms of economic modeling, I expand the model that highlights the way in which product quality moderates the relationship between information technology investments and economic performance (Thatcher and Pingry, 2004) by considering the cost of information technology investment and the demand creation resulting from product quality enhancement. For quality enhancement and its consequences for demand creation, I apply the concept of information quality and decision-maker quality (Raghunathan, 1999). This concept implies that the investment on information technology improves the quality of information, which, in turn, improves decision quality and performance, thus enhancing the level of product or service quality. Additionally, I consider the effect of word of mouth among consumers, which creates new demand for a product or service through the information diffusion effect. This demand creation is analyzed with an agent-based simulation model that is widely used for network analyses. Results show that the investment on information technology enhances the quality of a company's product or service, which indirectly affects the economic performance of that company, particularly with regard to factors such as consumer surplus, company profit, and company productivity. Specifically, when a company makes its initial investment in information technology, the resultant increase in the quality of a company's product or service immediately has a positive effect on consumer surplus, but the investment cost has a negative effect on company productivity and profit. As time goes by, the enhancement of the quality of that company's product or service creates new consumer demand through the information diffusion effect. Finally, the new demand positively affects the company's profit and productivity. In terms of the investment strategy for information technology, this study's results also reveal that the selection of information technology needs to be based on analysis of service and the network effect of customers, and demonstrate that information technology implementation should fit into the company's business strategy. Specifically, if a company seeks the short-term enhancement of company performance, it needs to have a one-shot strategy (making a large investment at one time). On the other hand, if a company seeks a long-term sustainable profit structure, it needs to have a split strategy (making several small investments at different times). The findings from this study make several contributions to the literature. In terms of methodology, the study integrates both economic modeling and simulation technique in order to overcome the limitations of each methodology. It also indicates the mediating effect of product quality on the relationship between information technology and the performance of a company. Finally, it analyzes the effect of information technology investment strategies and information diffusion among consumers on the investment performance of information technology.

• Information Systems Review
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• v.19 no.4
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• pp.157-169
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• 2017

Real option thinking can provide a strategic agility, especially when IT managers consider ERP investment projects. Managing financial and IT risks is critical for the success of ERP investment projects. We examine whether Korean IT managers apply the real option thinking when considering ERP investment projects. On the basis of a survey data collection, we validate hypotheses based on existing literature in IT and finance. Notably, Korean IT managers consider only volatility among financial risk variables and two important IT risk variables, namely, requirement changes and continuous training costs.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.16 no.9
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• pp.5982-5988
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• 2015

This study is about what effect the proverb of the stock has on the investment behavior by the stock investors. It confirmed if the investors knew the stock proverb that had been used in the stock market for a long time, examined the stock investors applied this content to the real investment process, analyzed if the application influenced the investment result. For this, this study selected total 29 stock proverbs about the investment principle, diversified investment, item selection, time of buying and selling, and value tendency which were being used in the stock market and frequently quoted in the stock-related literature to conduct a questionnaire targeting 191 stock investors and analyze the result. As a result of the analysis, it was confirmed the investors of 14% applied the stock proverb to invest and created the profit through it. It is expected the stock investors and the stock market used the analyzed stock proverb statistics through these helpful study and results to apply to the stock investment.

• Journal of Digital Convergence
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• v.19 no.5
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• pp.353-363
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• 2021

This study analyzed to provide information for business improvement by analyzing the management efficiency of start-up investment companies so that startup investment companies can operate efficiently and by presenting information on inefficient factors. From 2014 to 2018, 83 start-up investment companies were analyzed using the DEA model. Input variables were he number of employees, capital, and output variables were selected for start-up investment assets, operating income, and net profit. As a result of the analysis, technical efficiency and pure technical efficiency showed a pattern with an increase in average, but scale efficiency repeatedly increased and decreased. It is believed that the decline in technology efficiency was due to the decrease in pure technology efficiency, and the inefficiency of start-up investment companies seems to have influenced the inefficiency of start-up investment companies rather than the inefficiency of scale. In addition, the size revenue shows that the DRS value is gradually decreasing, and the IRS value is generally increasing. It is believed that efficiency can be improved if operational inefficiency is improved based on the results and efficiency measures are established through scale expansion.

• Journal of the Korea Society of Computer and Information
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• v.14 no.6
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• pp.107-116
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• 2009

Even though there are growing numbers of IT utilization in many organizations, they are required to use only constrained amount of resources due to the decrease in IT Investment, following economic recession. Besides, the CEOs in those organizations are required to assess how IT Investment, which has been gradually increased during the industrial growth, affects their organizational performances. Thus, they began to enforce IT governance so as to measure IT efficiency and minimize business risks. As a result, they improved the decision making process of IT Investment, enforced IT value assessment, and established the IT Investment-performance evaluation process as well. In this article, I aimed to make it clear how IT Investment affects the IT Performance by analyzing the effects of the factors constituting the IT Investment managing system and the Process Maturity on the User Satisfaction. This analysis can suggest a practical IT Investment-performance model, which can increase organizational performances.

• Review of KIISC
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• v.22 no.6
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• pp.15-21
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• 2012

정보기술(IT) 인프라가 기업의 핵심 인프라로 자리 잡으면서 기업은 고객에게 다양하고 유용한 서비스 및 재화를 제공하기 위하여 개인정보에 대한 의존도 및 활용도를 높이고 있다. 더불어 개인정보를 보호하기 위한 투자 요구도 높아지고 있으며, 이를 위해서 조직은 개인정보의 보호에 대한 측정 및 평가 방법을 수립하는 것이 필요하다. 본 연구에서 다양한 정보보호 투자의 성과측정 방법 및 IT 성과측정 방법의 기존 연구를 고찰하여 개인정보보호 투자에 따른 성과측정에 가장 적절한 방안으로 경제효율성평가(WiBe) 프레임워크를 선정하고, 그 타당성을 제시한다.

• 한국디지털정책학회:학술대회논문집
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• 2003.12a
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• pp.507-524
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• 2003

Many organizations experience that the performance they gained from IT investment is lower than they expected values. As with any investment, executives are concerned with maximizing the performance from their investment in IT. This study focused on the relationship between IT strategy and IT investment to maximize IT performance. A field survey of chief information officer of Korea manufacturing sector was conducted. Complete data for 147 firms was analyzed to determine relationship of the three research constructs. The study shows a positive relationship between IT strategic orientation, IT investment direction, and performance of IT. The research results provide empirical evidence that supports the research hypothesis that closer fit between IT strategies and IT investment directions does lead to increase operational and competitive performance of IT

• Journal of Digital Convergence
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• v.1 no.1
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• pp.165-187
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• 2003

Many organizations experience that the performance they gained from IT investment is lower than they expected values. As with any investment, executives are concerned with maximizing the performance from their investment in IT. This study focused on the relationship between IT strategy and IT investment to maximize IT performance. A field survey of chief information officer of Korea manufacturing sector was conducted. Complete data for 147 firms was analyzed to determine relationship of the three research constructs. The study shows a positive relationship between IT strategic orientation, IT investment direction, and performance of IT. The research results provide empirical evidence that supports the research hypothesis that closer fit between IT strategies and IT investment directions does lead to increase operational and competitive performance of IT.

• Journal of the Society of Disaster Information
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• v.11 no.4
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• pp.467-474
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• 2015

This study is about the demand survey of R&D for preventing disaster and safety accidents. The results are as follows. First, the priorities of technology development is shown in the following order: natural disasters, human and social disaster, and safety accidents. Second, the amount of R&D investment is shown in the following order in respect of disaster management phase: prevention, preparedness, response and recovery. However, investment in the recovery phase was low. Third, it was concentrated on some types the demands of technological development in the public sector. There is a possibility of duplication of technology development in government investment. Suggest that interagency cooperation is required.

• Journal of Technology Innovation
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• v.21 no.1
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• pp.1-26
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• 2013

The objectives of this paper are to analyze the effect of government R&D expenditure on employment in the Korean manufacturing sector in which employment is rapidly declining. According to the results of our empirical analysis, government R&D expenditure decreases the level of employment in Korean manufacturing sector in short term period, but it has positive effect on employment by compensation effect in the middle and long term period. Second, the effect of private R&D expenditure on job creation is three times larger than that of government R&D expenditure. Third, costs of labor and capital has negative effect on employment. This study is believed to help understanding the relation between R&D expenditure and employment, and providing policy implications of how to plan and manage government R&D expenditure as a tool of job creation.