INFORMATION TECHNOLOGY INVESTMENT AND COMMERCIALIZED INNOVATION PERFORMANCE: DYNAMIC ADJUSTMENT COSTS AND CURVILINEAR IMPACTS

• 成果类型: Article
• 署名作者: Karhade, Prasanna P.; Dong, John Qi
• 署名单位: University of Hawaii System; University of Hawaii Manoa; Trinity College Dublin
• 刊物名称: MIS QUARTERLY
• ISSN/ISSBN: 0276-7783
• DOI: 10.25300/MISQ/2021/14368
• 发表日期: 2021
• 页码: 1007-1024
• 关键词: research-and-development; firm performance; KNOWLEDGE; benefits; systems; environments; PRODUCTIVITY; integration; governance; RESOURCES

摘要

Firms' investment in information technology (IT) has been widely considered to be a key enabler of innovation. In this study, we integrate prior findings on the augmenting pathways (where IT investment supports innovation) with a new theory explaining the suppressing pathways (where dynamic adjustment costs associated with large IT investment can be detrimental to innovation) to propose an overall inverted U-shaped relationship between IT investment and commercialized innovation performance (CIP). To test our theory, we analyze a unique panel dataset from the largest economy in Europe and discovered a curvilinear relationship between IT investment and CIP for firms across a broad spectrum of industries. Our research presents empirical evidence corroborating the augmenting and suppressing pathways linking IT investment and CIP. Our findings serve as a cautionary signal to executives, discouraging overinvestment in IT.