Relationships Between Information Technology and Other Investments: A Contingent Interaction Model

• 成果类型: Article
• 署名作者: Havakhor, Taha; Sabherwal, Rajiv; Steelman, Zachary R.; Sabherwal, Sanjiv
• 署名单位: Oklahoma State University System; Oklahoma State University - Stillwater; University of Arkansas System; University of Arkansas Fayetteville; University of Texas System; University of Texas Arlington
• 刊物名称: INFORMATION SYSTEMS RESEARCH
• ISSN/ISSBN: 1047-7047
• DOI: 10.1287/isre.2018.0803
• 发表日期: 2019
• 页码: 291-305
• 关键词: research-and-development; firm performance; business value; panel-data; CAPABILITY; RESOURCES; systems; complementarities; strategies; INNOVATION

摘要

Recent studies on the business value of information technology (BVIT) investments have focused on understanding IT's impact on firm performance, either in the context of other organizational resources or in the light of contingency factors. This study extends the prior literature by integrating these two perspectives and examining the BVIT while simultaneously considering other organizational resources and one important contingency factor-environmental turbulence. We develop a contingent interaction model, proposing that a firm's IT interacts differently with a resource focused on fostering innovation (i.e., research and development [R&D]) and a resource focused on enhancing the competitive gains in the market (i.e., advertising), depending on the extent of environmental turbulence in its industry. Specifically, we hypothesize that as the extent of environmental turbulence in a firm's industry increases, the positive effect of the interaction between IT and R&D investments on firm performance increases, but the positive effect of the interaction between IT and advertising investments on firm performance decreases. Our findings, based on a longitudinal sample of 294 firms observed from 1999 to 2008 and collected from three archival sources (InformationWeek, COMPUSTAT, and CRSP) provide evidence that supports the proposed hypotheses. Additionally, the results of a split-sample analysis reveal that the interaction between IT and R&D has a positive effect on firm performance in turbulent environments but a negative effect in stable environments. Conversely, the interaction between IT and advertising has a negative effect on firm performance in turbulent environments but a positive effect in stable environments. Put together, these findings indicate that a firm's IT interacts differently with other organizational resources depending on (a) the resource's focus on value creation through innovation or value appropriation in themarket; and (b) the extent of turbulence in the firm's industry. This paper discusses the theoretical and empirical implications of these findings in detail.