• The Journal of Information Systems
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• v.29 no.2
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• pp.1-26
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• 2020

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.

• Asia pacific journal of information systems
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• v.22 no.1
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• pp.79-101
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• 2012

This study expands the current body of research by exploring multiple scenarios of insufficient and excessive IT security investments caused by interdependent risks and the interplay between IT security investments and cyber insurance. A key finding is that organizations experiencing interdependent risks with different types of cyber attacks (i.e., targeted and untargeted attacks) use different strategies in making IT security investment decisions and in purchasing cyber insurance policies for their information security risk management than firms that are facing independent risks. The study further provides an economic rationale for employing insurance mechanisms as a risk management solution for information security.

• Asia pacific journal of information systems
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• v.21 no.4
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• pp.27-43
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• 2011

This article explores economic models that show the optimal level of information security investment in the presence of interdependent security risks, Using particular functional forms, the analysis shows that the relationship between the levels of security vulnerability and the levels of optimal security investments is affected by externalities caused by agents' correlated security risks. This article further illustrates that, compared to security investments in the situation of independent security risks, in order to maximize the expected benefits from security investments, an agent should invest a larger fraction of the expected loss from a security breach in the case of negative externalities, while an agent should spend a smaller fraction of the expected loss in the case of negative externalities.

• Management & Information Systems Review
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• v.27
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• pp.31-52
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• 2008

Intangible Assets are more important determinants of firm value than others in a digital information-based economy(Lev, 2001). Prior research reveals that investments in intangible assets such as R&D and advertising expenditures are associated with firm value. This paper examines the effects of the corporate investments in the information technologies(IT) on stock return and economic goodwill. The sample consists of 152 firms listed on the Korean stock market in 2002. To test hypothesis We employed multiple regression models. Results are as follows; First, IT environment, IT process, and IT human resource are positively associated with firm's IT value. Second, firm's IT value is positively correlated with firm's economic goodwill. Third, firm's IT value is positively correlated with firm's stock return. These results suggest that the investments related with IT are effective in cultivating firm's value and Stock investors can make the best use of firm's announcements related with IT value. Thus the authorities concerned need to expand the public announcements related IT value.

• The Journal of Information Systems
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• v.19 no.3
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• pp.105-126
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• 2010

Many organizations have spent huge investments on information systems (IS) but are unable to achieve the maximum benefits expected. The problem of system underutilization of implemented IS is a major factor that causes the lackluster returns on organizational investments in IS. In light of the need for solutions to underutilization, researchers are beginning to explore IS infusion to enhance task performance. IS infusion is the extent to which an individual fully uses the system to enhance his or her task performance. So far, there has yet to be any significant finding or theory to explain the phenomenon. Therefore this study offers a conceptual framework on IS infusion based on the socio-technical system perspective. Particularly, this study investigates the influence of job fit, task competence, technology competence, self-determination with technology and self-determination with task on IS infusion. The analysis following the collection of empirical data found that job fit and self-determination with technology are positively related to IS infusion. This study serves as a basis for future research and suggests important implication to managers and system designers in promoting IS infusion.

• Management & Information Systems Review
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• v.28 no.4
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• pp.67-92
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• 2009

We examine the effects of investment opportunities, external financing, and cost of debts on the firms' capital investments. The empirical findings indicate that : (1) the firms' investment opportunities positively stimulates corporate capital investments but the effects of investment opportunities on the firms' capital investments decrease as the external financing and cost of debts increase ; (2) the firms' investment opportunities are positively correlated with firms' capital investments but the effects of external financing on the firms' capital investments decrease as cost of debts increase; (3) cost of debts is negatively associated with firms' capital investments and especially in the KOSPI firms, the effects of investment opportunities on the firms' capital investments decrease as cost of debts increase. Our findings suggest that managers' views be different from the policy maker's view and the more firms' internal factors of capital investments be found in the future.

• Proceedings of the Korean Society of Computer Information Conference
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• 2014.07a
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• pp.97-98
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• 2014

Lots of investment projects of new development and redevelopment for information systems have been not taken care of in the field of administration and evaluation, for these information systems projects have unique characteristics such as technology sensitiveness, network effectiveness, embeddedness, and externality. In fact, quantitative and qualitative evaluation of investments in information systems projects are not sufficient. It is critically important to generally evaluate benefits of development or operation cost, urgency, external effects, and so on. In addition, the efficient monitoring and effective analysis of information systems are surely needed for beneficient results of investment in information systems. We propose an economics evaluation model for information systems projects.

• Asia pacific journal of information systems
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• v.11 no.2
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• pp.159-180
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• 2001

Despite the large and ongoing investments in information systems and technologies, many organizations still suffer from the lack of integration and interoperability of multiple information systems, In order to deal with these enduring problems, a number of government organizations and corporate firms in the United States have developed and maintained IT architectures through enterprise architecture planning. An IT architecture is a decision-making framework for IT planners and developers, establishing guidelines for the individual IT resource owners and users. It provides guidance to those involved in building and maintaining IT systems and infrastructure. Enterprise architecture planning represents a new paradigm of information systems planning in that it addresses the long-term view of the enterprise organization from top-level principles to detailed technology architectures. This paper explores a couple of cases in the successful implementation of IT architectures in both public and private sectors, and proposes a step-by-step methodology for building an effective IT architecture.

• Asia pacific journal of information systems
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• v.17 no.1
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• pp.1-31
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• 2007

This research proposes a conceptual framework to highlight the importance of change management after firms implement ERP systems. With ERP, firms need to rework their business processes to make information flow smoothly within organizations. Firms cannot realize expected returns from ERP investments unless changes are effectively managed after ERP systems are put into operation. The research model is empirically tested using data collected from over 170 firms that had used ERP systems at least for more than one year. Our analysis reveals that the eventual success of ERP systems depends on effective change management after ERP implementation, supporting the existence of the 'valley of despair.

• Proceedings of the Korean Society of Computer Information Conference
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• 2014.07a
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• pp.99-100
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• 2014

Even though many projects of new development and redevelopment for information systems are invested, they are not taken care of from the perspective of administration and evaluation. Also, decision makers fall short of not only support the process to check alternatives and select an alternative for investment and but also provide necessary information so as to maximize the effects of investments. That is to say, the suggestion of general direction toward IT investment is debatable. Against this backdrop, we propose a value measurement model to manage information systems.