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HOW INFORMATION TECHNOLOGY STRATEGY AND INVESTMENTS INFLUENCE FIRM PERFORMANCE:
CONJECTURE AND EMPIRICAL EVIDENCE1.
Mithas, Sunil [email protected]
Rust, Roland T. [email protected]
MIS Quarterly. Mar2016, Vol. 40 Issue 1, p223-246. 24p. 7 Charts, 4 Graphs.
Article
*INFORMATION technology
*FINANCE
*MARKET value
*BUSINESS revenue
*TOBIN'S Q ratio
*COST control
cost reduction
dual emphasis
firm performance
Information technology strategic emphasis
IT ambidexterity
IT investments
IT strategic ambidexterity
profitability
revenue growth
In this paper, we develop conjectures for understanding how information technology (IT) strategy and IT
investments jointly influence profitability and the market value of the firm. We view IT strategy as an
expression of the dominant strategic objective that the firm chooses to emphasize, which can be revenue
expansion, cost reduction, or a dual emphasis in which both goals are pursued. Using data from more than
300 firms in the United States, we find that at the mean value of IT investments, firms with a dual IT strategic
emphasis have a higher market value as measured by Tobin's Q than firms with a revenue or a cost
emphasis, but they have similar levels of profitability. Of greater importance, IT strategic emphasis plays a
significant role in moderating the relationship between IT investments and firm performance. Dual-emphasis
firms have a stronger IT–Tobin's Q relationship than revenue-emphasis firms. Dual-emphasis firms also have
a stronger IT– profitability relationship than either revenue- or cost-emphasis firms. Overall, these findings
imply that, at low levels of IT investment, the firm may need to choose between revenue expansion and cost
1
2
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reduction, but at higher levels of IT investment, dual-emphasis in IT strategy or IT strategic ambidexterity
increasingly pays off. [ABSTRACT FROM AUTHOR]
Copyright of MIS Quarterly is the property of MIS Quarterly and its content may not be copied or emailed to
multiple sites or posted to a listserv without the copyright holder's express written permission. However, users
may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given
about the accuracy of the copy. Users should refer to the original published version of the material for the full
abstract. (Copyright applies to all Abstracts.)
Professor, Robert H. Smith School of Business, University of Maryland
Visiting Chair, Marketing Research, Erasmus University
15379
0276-7783
112750564
Academic Search Complete
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HOW INFORMATION TECHNOLOGY STRATEGY AND INVESTMENTS INFLUENCE FIRM PERFORMANCE: CONJECTURE
AND EMPIRICAL EVIDENCE1
In this paper, we develop conjectures for understanding how information technology (IT) strategy and IT investm ...
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HOW INFORMATION TECHNOLOGY STRATEGY AND INVESTMENTS INFLUENCE FIRM
PERFORMANCE: CONJECTURE AND EMPIRICAL EVIDENCE1.
Mithas, Sunil [email protected]
Rust, Roland T. [email protected]
MIS Quarterly. Mar2016, Vol. 40 Issue 1, p223-246. 24p. 7 Charts, 4 Graphs.
Article
*INFORMATION technology
*FINANCE
*MARKET value
*BUSINESS revenue
*TOBIN'S Q ratio
*COST control
cost reduction
dual emphasis
firm performance
Information technology strategic emphasis
IT ambidexterity
IT investments
IT strategic ambidexterity
profitability
revenue growth
In this paper, we develop conjectures for understanding how information technology (IT) strategy and IT
investments jointly influence profitability and the market value of the firm. We view IT strategy as an
expression of the dominant strategic objective that the firm chooses to emphasize, which can be revenue
expansion, cost reduction, or a dual emphasis in which both goals are pursued. Using data from more than
300 firms in the United States, we find that at the mean value of IT investments, firms with a dual IT strategic
emphasis have a higher market value as measured by Tobin's Q than firms with a revenue or a cost
emphasis, but they have similar levels of profitability. Of greater importance, IT strategic emphasis plays a
significant role in moderating the relationship between IT investments and firm performance. Dual-emphasis
firms have a stronger IT–Tobin's Q relationship than revenue-emphasis firms. Dual-emphasis firms also have
a stronger IT– profitability relationship than either revenue- or cost-emphasis firms. Overall, these findings
imply that, at low levels of IT investment, the firm may need to choose between revenue expansion and cost
reduction, but at higher levels of IT investment, dual-emphasis in IT strategy or IT strategic ambidexterity
increasingly pays off. [ABSTRACT FROM AUTHOR]
Copyright of MIS Quarterly is the property of MIS Quarterly and its content may not be copied or emailed to
multiple sites or posted to a listserv without the copyright holder's express written permission. However, users
may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given
about the accuracy of the copy. Users should refer to the original published version of the material for the full
abstract. (Copyright applies to all Abstracts.)
Professor, Robert H. Smith School of Business, University of Maryland
Visiting Chair, Marketing Research, Erasmus University
15379
0276-7783
112750564
Academic Search Complete
RESEARCH NOTES
HOW INFORMATION TECHNOLOGY STRATEGY AND INVESTMENTS INFLUENCE FIRM PERFORMA ...
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HOW INFORMATION TECHNOLOGY STRATEGY AND INVESTMENTS INFLUENCE FIRM
PERFORMANCE: CONJECTURE AND EMPIRICAL EVIDENCE1.
Mithas, Sunil [email protected]
Rust, Roland T. [email protected]
MIS Quarterly. Mar2016, Vol. 40 Issue 1, p223-246. 24p. 7 Charts, 4 Graphs.
Article
*INFORMATION technology
*FINANCE
*MARKET value
*BUSINESS revenue
*TOBIN'S Q ratio
*COST control
cost reduction
dual emphasis
firm performance
Information technology strategic emphasis
IT ambidexterity
IT investments
IT strategic ambidexterity
profitability
revenue growth
In this paper, we develop conjectures for understanding how information technology (IT) strategy and IT
investments jointly influence profitability and the market value of the firm. We view IT strategy as an
expression of the dominant strategic objective that the firm chooses to emphasize, which can be revenue
expansion, cost reduction, or a dual emphasis in which both goals are pursued. Using data from more than
300 firms in the United States, we find that at the mean value of IT investments, firms with a dual IT strategic
emphasis have a higher market value as measured by Tobin's Q than firms with a revenue or a cost
emphasis, but they have similar levels of profitability. Of greater importance, IT strategic emphasis plays a
significant role in moderating the relationship between IT investments and firm performance. Dual-emphasis
firms have a stronger IT–Tobin's Q relationship than revenue-emphasis firms. Dual-emphasis firms also have
a stronger IT– profitability relationship than either revenue- or cost-emphasis firms. Overall, these findings
imply that, at low levels of IT investment, the firm may need to choose between revenue expansion and cost
reduction, but at higher levels of IT investment, dual-emphasis in IT strategy or IT strategic ambidexterity
increasingly pays off. [ABSTRACT FROM AUTHOR]
Copyright of MIS Quarterly is the property of MIS Quarterly and its content may not be copied or emailed to
multiple sites or posted to a listserv without the copyright holder's express written permission. However, users
may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given
about the accuracy of the copy. Users should refer to the original published version of the material for the full
abstract. (Copyright applies to all Abstracts.)
Professor, Robert H. Smith School of Business, University of Maryland
Visiting Chair, Marketing Research, Erasmus University
15379
0276-7783
112750564
Academic Search Complete
RESEARCH NOTES
HOW INFORMATION TECHNOLOGY STRATEGY AND INVESTMENTS INFLUENCE FIRM ...
RESEARCH NOTEHOW INFORMATION TECHNOLOGY STRATEGY ANDINVE.docxaudeleypearl
RESEARCH NOTE
HOW INFORMATION TECHNOLOGY STRATEGY AND
INVESTMENTS INFLUENCE FIRM PERFORMANCE:
CONJECTURE AND EMPIRICAL EVIDENCE1
Sunil Mithas and Roland T. Rust
Robert H. Smith School of Business, University of Maryland,
College Park, MD 20742 U.S.A. {[email protected]} {[email protected]}
In this paper, we develop conjectures for understanding how information technology (IT) strategy and IT
investments jointly influence profitability and the market value of the firm. We view IT strategy as an expres-
sion of the dominant strategic objective that the firm chooses to emphasize, which can be revenue expansion,
cost reduction, or a dual emphasis in which both goals are pursued. Using data from more than 300 firms in
the United States, we find that at the mean value of IT investments, firms with a dual IT strategic emphasis have
a higher market value as measured by Tobin’s Q than firms with a revenue or a cost emphasis, but they have
similar levels of profitability. Of greater importance, IT strategic emphasis plays a significant role in moder-
ating the relationship between IT investments and firm performance. Dual-emphasis firms have a stronger
IT–Tobin’s Q relationship than revenue-emphasis firms. Dual-emphasis firms also have a stronger IT–
profitability relationship than either revenue- or cost-emphasis firms. Overall, these findings imply that, at low
levels of IT investment, the firm may need to choose between revenue expansion and cost reduction, but at
higher levels of IT investment, dual-emphasis in IT strategy or IT strategic ambidexterity increasingly pays off.
Keywords: Information technology strategic emphasis, IT ambidexterity, IT strategic ambidexterity, firm
performance, profitability, IT investments, revenue growth, cost reduction, dual emphasis
Introduction1
Firms spend significant sums of money on information tech-
nology (IT) resources, yet they are often challenged in
developing appropriate strategies to direct these resources to
realize business value (for a discussion, see Kohli and
Devaraj 2004). Previous research has studied either the im-
pact of IT investments on firm performance (e.g., Barua and
Mukhopadhyay 2000; Dedrick et al. 2003; Hoadley and Kohli
2014; Kohli and Devaraj 2003; Kohli et al. 2012) or the effect
of IT strategic emphasis on firm performance (e.g., Leidner et
al. 2011; Oh and Pinsonneault 2007; Tallon 2007; Tallon et
al. 2000). However, few studies focus on the effect of IT
investments and IT strategic emphasis simultaneously. Given
that profit is equal to revenue minus cost, it is clear that there
are three strategic paths from IT to firm performance: IT can
be used to (1) reduce costs by improving productivity and
efficiency; (2) increase revenues by fully exploiting oppor-
tunities through existing customers, channels, and products/
services and by finding or creating new customers, channels,
and products/services; or (3) reduce costs and increase
revenues simultaneously. W ...
Week 6 Post Menopausal and Sexuality Issues in the Maturing and O.docxhelzerpatrina
Week 6: Post Menopausal and Sexuality Issues in the Maturing and Older Adult Discussion
No unread replies. No replies.
Students will not receive credit for any discussions posted after Sunday 11:59pm MT.
Ageism and gender bias can affect who and how we ask about sexual health, sexual activity, and concerning symptoms. Depending on your own level of comfort and cultural norms this can be a tough conversation for some providers. But this is an important topic and as our videos discussed, women are wanting us to ask about sexual concerns. This week we also reviewed sexually transmitted diseases and the effects of ageism on time to diagnosis so it is necessary to ask these questions and provide good education for all patients. You will not know any needs unless you ask.
Discussion Questions:
· Review the required NAMS videos. What was the most surprising thing you learned about in the videos? Explain why it was surprising.
· What is GSM? What body systems are involved? How does this affect a woman's quality of life?
· What treatment does Dr Shapiro recommend?
· Review one aspect of treatment that Dr Shapiro recommends and include an EBP journal article or guideline recommendation in addition to referencing the video in your response.
Sexuality and the older adult
· What is your level of comfort in taking a complete sexual history? Is this comfort level different for male or female patients? If so, why?
· How will this information impact the way you will interact with your mature and elderly clients?
RESEARCH NOTE
HOW INFORMATION TECHNOLOGY STRATEGY AND
INVESTMENTS INFLUENCE FIRM PERFORMANCE:
CONJECTURE AND EMPIRICAL EVIDENCE1
Sunil Mithas and Roland T. Rust
Robert H. Smith School of Business, University of Maryland,
College Park, MD 20742 U.S.A. {[email protected]} {[email protected]}
In this paper, we develop conjectures for understanding how information technology (IT) strategy and IT
investments jointly influence profitability and the market value of the firm. We view IT strategy as an expres-
sion of the dominant strategic objective that the firm chooses to emphasize, which can be revenue expansion,
cost reduction, or a dual emphasis in which both goals are pursued. Using data from more than 300 firms in
the United States, we find that at the mean value of IT investments, firms with a dual IT strategic emphasis have
a higher market value as measured by Tobin’s Q than firms with a revenue or a cost emphasis, but they have
similar levels of profitability. Of greater importance, IT strategic emphasis plays a significant role in moder-
ating the relationship between IT investments and firm performance. Dual-emphasis firms have a stronger
IT–Tobin’s Q relationship than revenue-emphasis firms. Dual-emphasis firms also have a stronger IT–
profitability relationship than either revenue- or cost-emphasis firms. Overall, these findings imply that, at low
levels of IT investment, the firm may need to choose between revenue expansion ...
This document discusses the evolving relationship between business strategy and IT strategy. It notes that executives now recognize IT's strategic potential and its ability to impact top-line growth. As a result, IT is increasingly involved in strategic discussions and helping shape business strategy through new technologies. However, effective strategy development still requires addressing challenges such as aligning business and IT strategies and ensuring the right people are involved from both business and IT. The document also outlines four critical success factors for developing IT strategy: revisiting the business model, having strategic themes, involving the right people, and working in partnership between business and IT.
15C h a p t e r2 Developing IT Strategy for Business V.docxnovabroom
15
C h a p t e r
2 Developing IT Strategy for Business Value1
1 This chapter is based on the authors’ previously published article, Smith, H. A., J. D. McKeen, and S. Singh.
“Developing IT Strategy for Business Value.” Journal of Information Technology Management XVIII, no. 1 (June
2007): 49–58. Reproduced by permission of the Association of Management.
Suddenly, it seems, executives are “getting” the strategic potential of IT. Instead of being relegated to the back rooms of the enterprise, IT is now being invited to the boardrooms and is being expected to play a leading role in delivering top-
line value and business transformation (Korsten 2011; Luftman and Zadeh 2011; Peslak
2012). Thus, it can no longer be assumed that business strategy will naturally drive IT
strategy, as has traditionally been the case. Instead, different approaches to strategy
development are now possible and sometimes desirable. For example, the capabilities
of new technologies could shape the strategic direction of a firm (e.g., mobile, social
media, big data). IT could enable new competencies that would then make new busi-
ness strategies possible (e.g., location-based advertising). New options for governance
using IT could also change how a company works with other firms (think Wal-Mart
or Netflix). Today new technologies coevolve with new business strategies and new
behaviors and structures (see Figure 2.1). However, whichever way it is developed, if
IT is to deliver business value, IT strategy must always be closely linked with sound
business strategy.
Ideally, therefore, business and IT strategies should complement and support each
other relative to the business environment. Strategy development should be a two-way
process between the business and IT. Yet unfortunately, poor alignment between them
remains a perennial problem (Frohman 1982; Luftman and Zadeh 2011; McKeen and
Smith 1996; Rivard et al. 2004). Research has already identified many organizational
challenges to effective strategic alignment. For example, if their strategy-development
processes are not compatible (e.g., if they take place at different times or involve differ-
ent levels of the business), it is unlikely that the business and IT will be working toward
the same goals at the same time (Frohman 1982). Aligning with individual business
units can lead to initiatives that suboptimize the effectiveness of corporate strategies
(McKeen and Smith 1996). Strategy implementation must also be carefully aligned to
16 Section I • Delivering Value with IT
ensure the integration of business and IT efforts (Smith and McKeen 2010). Finally, com-
panies often try to address too many priorities, leading to an inadequate focus on key
strategic goals (Weiss and Thorogood 2011).
However, strategic alignment is only one problem facing IT managers when they
develop IT strategy. With IT becoming so much more central to the development and
delivery of business strategy, much mor.
JUSTIFICATION OF, AND BENEFITS REALIZATION BEYOND IT INVESTMENTS: ANALYSIS F...ijmvsc
This work looked at the justification of IT investments in general, to draw important conclusions that could
be beneficial to IT project managers and professionals, and then zero in on the angle of benefits realization
beyond IT investments.About 30 categories/sets of research outputs or articles out of more than 60 articles
reviewed were used for this work. No primary data was employed for this work. Articles were sourced from
databases such as Google Scholar, Research Gate, Academia.edu, Google search engine, Elsevier, and so
on. The main themes used for the search were IT investments, Justification for IT investments, IT
investments benefit determination, value creation beyond IT investments, and so on. The results showed
that justification is unique to every firm, it is contextual, and so stakeholders must take into consideration
environmental factors, corporate and strategic goals, experience and expertise of stakeholders, and so on,
to design its framework and measures to justify IT investments. Zeroing on benefits realization, two things
run through all the discussions: benefits realization of IT investments must take into consideration the
organization's strategic objectives and that they do not simply emerge, as if by magic. Their realization has
to be planned, delivered, reviewed, and exploited to ensure value realization on a more consistent/constant
basis.
COMPLEMENTARY ASSETS AND VALUE CREATION BEYOND INFORMATION TECHNOLOGY INVESTM...ijmvsc
This work was aimed at analyzing the relationships between some selected complementary assets (independent variables) and some specified benefits/value creation (dependent variables), beyond Information Technology (IT) investments in an organizational setting. The purpose was to determine
significant complementary assets that impact greatly on value creation beyond IT investments.With 175 questionnaires sent to IT project and program managers of companies in the Telecom industry in Ghana, and analyzed,the following findings were revealed: for value creation beyond IT investments to be
achieved, the staff must be computer literate, there must be the availability of experts and firms around to help in resolving IT problems quickly and timely that crop up, and the staff must be empowered to be innovative with IT. Again, the results showed that most of the complementary assets employed in this work, tend to favor benefits of Improved staff morale and Improved business processes. Also, one of the strongest positive relationships was found to exist between “supportive organizational culture that values efficiency and effectiveness” as predictor variable and “service/product quality” as response
variable.
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Record: 1
HOW INFORMATION TECHNOLOGY STRATEGY AND INVESTMENTS INFLUENCE FIRM
PERFORMANCE: CONJECTURE AND EMPIRICAL EVIDENCE1.
Mithas, Sunil [email protected]
Rust, Roland T. [email protected]
MIS Quarterly. Mar2016, Vol. 40 Issue 1, p223-246. 24p. 7 Charts, 4 Graphs.
Article
*INFORMATION technology
*FINANCE
*MARKET value
*BUSINESS revenue
*TOBIN'S Q ratio
*COST control
cost reduction
dual emphasis
firm performance
Information technology strategic emphasis
IT ambidexterity
IT investments
IT strategic ambidexterity
profitability
revenue growth
In this paper, we develop conjectures for understanding how information technology (IT) strategy and IT
investments jointly influence profitability and the market value of the firm. We view IT strategy as an
expression of the dominant strategic objective that the firm chooses to emphasize, which can be revenue
expansion, cost reduction, or a dual emphasis in which both goals are pursued. Using data from more than
300 firms in the United States, we find that at the mean value of IT investments, firms with a dual IT strategic
emphasis have a higher market value as measured by Tobin's Q than firms with a revenue or a cost
emphasis, but they have similar levels of profitability. Of greater importance, IT strategic emphasis plays a
significant role in moderating the relationship between IT investments and firm performance. Dual-emphasis
firms have a stronger IT–Tobin's Q relationship than revenue-emphasis firms. Dual-emphasis firms also have
a stronger IT– profitability relationship than either revenue- or cost-emphasis firms. Overall, these findings
imply that, at low levels of IT investment, the firm may need to choose between revenue expansion and cost
reduction, but at higher levels of IT investment, dual-emphasis in IT strategy or IT strategic ambidexterity
increasingly pays off. [ABSTRACT FROM AUTHOR]
Copyright of MIS Quarterly is the property of MIS Quarterly and its content may not be copied or emailed to
multiple sites or posted to a listserv without the copyright holder's express written permission. However, users
may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given
about the accuracy of the copy. Users should refer to the original published version of the material for the full
abstract. (Copyright applies to all Abstracts.)
Professor, Robert H. Smith School of Business, University of Maryland
Visiting Chair, Marketing Research, Erasmus University
15379
0276-7783
112750564
Academic Search Complete
RESEARCH NOTES
HOW INFORMATION TECHNOLOGY STRATEGY AND INVESTMENTS INFLUENCE FIRM PERFORMA ...
8/13/2019 EBSCOhost
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Authors:
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Record: 1
HOW INFORMATION TECHNOLOGY STRATEGY AND INVESTMENTS INFLUENCE FIRM
PERFORMANCE: CONJECTURE AND EMPIRICAL EVIDENCE1.
Mithas, Sunil [email protected]
Rust, Roland T. [email protected]
MIS Quarterly. Mar2016, Vol. 40 Issue 1, p223-246. 24p. 7 Charts, 4 Graphs.
Article
*INFORMATION technology
*FINANCE
*MARKET value
*BUSINESS revenue
*TOBIN'S Q ratio
*COST control
cost reduction
dual emphasis
firm performance
Information technology strategic emphasis
IT ambidexterity
IT investments
IT strategic ambidexterity
profitability
revenue growth
In this paper, we develop conjectures for understanding how information technology (IT) strategy and IT
investments jointly influence profitability and the market value of the firm. We view IT strategy as an
expression of the dominant strategic objective that the firm chooses to emphasize, which can be revenue
expansion, cost reduction, or a dual emphasis in which both goals are pursued. Using data from more than
300 firms in the United States, we find that at the mean value of IT investments, firms with a dual IT strategic
emphasis have a higher market value as measured by Tobin's Q than firms with a revenue or a cost
emphasis, but they have similar levels of profitability. Of greater importance, IT strategic emphasis plays a
significant role in moderating the relationship between IT investments and firm performance. Dual-emphasis
firms have a stronger IT–Tobin's Q relationship than revenue-emphasis firms. Dual-emphasis firms also have
a stronger IT– profitability relationship than either revenue- or cost-emphasis firms. Overall, these findings
imply that, at low levels of IT investment, the firm may need to choose between revenue expansion and cost
reduction, but at higher levels of IT investment, dual-emphasis in IT strategy or IT strategic ambidexterity
increasingly pays off. [ABSTRACT FROM AUTHOR]
Copyright of MIS Quarterly is the property of MIS Quarterly and its content may not be copied or emailed to
multiple sites or posted to a listserv without the copyright holder's express written permission. However, users
may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given
about the accuracy of the copy. Users should refer to the original published version of the material for the full
abstract. (Copyright applies to all Abstracts.)
Professor, Robert H. Smith School of Business, University of Maryland
Visiting Chair, Marketing Research, Erasmus University
15379
0276-7783
112750564
Academic Search Complete
RESEARCH NOTES
HOW INFORMATION TECHNOLOGY STRATEGY AND INVESTMENTS INFLUENCE FIRM ...
RESEARCH NOTEHOW INFORMATION TECHNOLOGY STRATEGY ANDINVE.docxaudeleypearl
RESEARCH NOTE
HOW INFORMATION TECHNOLOGY STRATEGY AND
INVESTMENTS INFLUENCE FIRM PERFORMANCE:
CONJECTURE AND EMPIRICAL EVIDENCE1
Sunil Mithas and Roland T. Rust
Robert H. Smith School of Business, University of Maryland,
College Park, MD 20742 U.S.A. {[email protected]} {[email protected]}
In this paper, we develop conjectures for understanding how information technology (IT) strategy and IT
investments jointly influence profitability and the market value of the firm. We view IT strategy as an expres-
sion of the dominant strategic objective that the firm chooses to emphasize, which can be revenue expansion,
cost reduction, or a dual emphasis in which both goals are pursued. Using data from more than 300 firms in
the United States, we find that at the mean value of IT investments, firms with a dual IT strategic emphasis have
a higher market value as measured by Tobin’s Q than firms with a revenue or a cost emphasis, but they have
similar levels of profitability. Of greater importance, IT strategic emphasis plays a significant role in moder-
ating the relationship between IT investments and firm performance. Dual-emphasis firms have a stronger
IT–Tobin’s Q relationship than revenue-emphasis firms. Dual-emphasis firms also have a stronger IT–
profitability relationship than either revenue- or cost-emphasis firms. Overall, these findings imply that, at low
levels of IT investment, the firm may need to choose between revenue expansion and cost reduction, but at
higher levels of IT investment, dual-emphasis in IT strategy or IT strategic ambidexterity increasingly pays off.
Keywords: Information technology strategic emphasis, IT ambidexterity, IT strategic ambidexterity, firm
performance, profitability, IT investments, revenue growth, cost reduction, dual emphasis
Introduction1
Firms spend significant sums of money on information tech-
nology (IT) resources, yet they are often challenged in
developing appropriate strategies to direct these resources to
realize business value (for a discussion, see Kohli and
Devaraj 2004). Previous research has studied either the im-
pact of IT investments on firm performance (e.g., Barua and
Mukhopadhyay 2000; Dedrick et al. 2003; Hoadley and Kohli
2014; Kohli and Devaraj 2003; Kohli et al. 2012) or the effect
of IT strategic emphasis on firm performance (e.g., Leidner et
al. 2011; Oh and Pinsonneault 2007; Tallon 2007; Tallon et
al. 2000). However, few studies focus on the effect of IT
investments and IT strategic emphasis simultaneously. Given
that profit is equal to revenue minus cost, it is clear that there
are three strategic paths from IT to firm performance: IT can
be used to (1) reduce costs by improving productivity and
efficiency; (2) increase revenues by fully exploiting oppor-
tunities through existing customers, channels, and products/
services and by finding or creating new customers, channels,
and products/services; or (3) reduce costs and increase
revenues simultaneously. W ...
Week 6 Post Menopausal and Sexuality Issues in the Maturing and O.docxhelzerpatrina
Week 6: Post Menopausal and Sexuality Issues in the Maturing and Older Adult Discussion
No unread replies. No replies.
Students will not receive credit for any discussions posted after Sunday 11:59pm MT.
Ageism and gender bias can affect who and how we ask about sexual health, sexual activity, and concerning symptoms. Depending on your own level of comfort and cultural norms this can be a tough conversation for some providers. But this is an important topic and as our videos discussed, women are wanting us to ask about sexual concerns. This week we also reviewed sexually transmitted diseases and the effects of ageism on time to diagnosis so it is necessary to ask these questions and provide good education for all patients. You will not know any needs unless you ask.
Discussion Questions:
· Review the required NAMS videos. What was the most surprising thing you learned about in the videos? Explain why it was surprising.
· What is GSM? What body systems are involved? How does this affect a woman's quality of life?
· What treatment does Dr Shapiro recommend?
· Review one aspect of treatment that Dr Shapiro recommends and include an EBP journal article or guideline recommendation in addition to referencing the video in your response.
Sexuality and the older adult
· What is your level of comfort in taking a complete sexual history? Is this comfort level different for male or female patients? If so, why?
· How will this information impact the way you will interact with your mature and elderly clients?
RESEARCH NOTE
HOW INFORMATION TECHNOLOGY STRATEGY AND
INVESTMENTS INFLUENCE FIRM PERFORMANCE:
CONJECTURE AND EMPIRICAL EVIDENCE1
Sunil Mithas and Roland T. Rust
Robert H. Smith School of Business, University of Maryland,
College Park, MD 20742 U.S.A. {[email protected]} {[email protected]}
In this paper, we develop conjectures for understanding how information technology (IT) strategy and IT
investments jointly influence profitability and the market value of the firm. We view IT strategy as an expres-
sion of the dominant strategic objective that the firm chooses to emphasize, which can be revenue expansion,
cost reduction, or a dual emphasis in which both goals are pursued. Using data from more than 300 firms in
the United States, we find that at the mean value of IT investments, firms with a dual IT strategic emphasis have
a higher market value as measured by Tobin’s Q than firms with a revenue or a cost emphasis, but they have
similar levels of profitability. Of greater importance, IT strategic emphasis plays a significant role in moder-
ating the relationship between IT investments and firm performance. Dual-emphasis firms have a stronger
IT–Tobin’s Q relationship than revenue-emphasis firms. Dual-emphasis firms also have a stronger IT–
profitability relationship than either revenue- or cost-emphasis firms. Overall, these findings imply that, at low
levels of IT investment, the firm may need to choose between revenue expansion ...
This document discusses the evolving relationship between business strategy and IT strategy. It notes that executives now recognize IT's strategic potential and its ability to impact top-line growth. As a result, IT is increasingly involved in strategic discussions and helping shape business strategy through new technologies. However, effective strategy development still requires addressing challenges such as aligning business and IT strategies and ensuring the right people are involved from both business and IT. The document also outlines four critical success factors for developing IT strategy: revisiting the business model, having strategic themes, involving the right people, and working in partnership between business and IT.
15C h a p t e r2 Developing IT Strategy for Business V.docxnovabroom
15
C h a p t e r
2 Developing IT Strategy for Business Value1
1 This chapter is based on the authors’ previously published article, Smith, H. A., J. D. McKeen, and S. Singh.
“Developing IT Strategy for Business Value.” Journal of Information Technology Management XVIII, no. 1 (June
2007): 49–58. Reproduced by permission of the Association of Management.
Suddenly, it seems, executives are “getting” the strategic potential of IT. Instead of being relegated to the back rooms of the enterprise, IT is now being invited to the boardrooms and is being expected to play a leading role in delivering top-
line value and business transformation (Korsten 2011; Luftman and Zadeh 2011; Peslak
2012). Thus, it can no longer be assumed that business strategy will naturally drive IT
strategy, as has traditionally been the case. Instead, different approaches to strategy
development are now possible and sometimes desirable. For example, the capabilities
of new technologies could shape the strategic direction of a firm (e.g., mobile, social
media, big data). IT could enable new competencies that would then make new busi-
ness strategies possible (e.g., location-based advertising). New options for governance
using IT could also change how a company works with other firms (think Wal-Mart
or Netflix). Today new technologies coevolve with new business strategies and new
behaviors and structures (see Figure 2.1). However, whichever way it is developed, if
IT is to deliver business value, IT strategy must always be closely linked with sound
business strategy.
Ideally, therefore, business and IT strategies should complement and support each
other relative to the business environment. Strategy development should be a two-way
process between the business and IT. Yet unfortunately, poor alignment between them
remains a perennial problem (Frohman 1982; Luftman and Zadeh 2011; McKeen and
Smith 1996; Rivard et al. 2004). Research has already identified many organizational
challenges to effective strategic alignment. For example, if their strategy-development
processes are not compatible (e.g., if they take place at different times or involve differ-
ent levels of the business), it is unlikely that the business and IT will be working toward
the same goals at the same time (Frohman 1982). Aligning with individual business
units can lead to initiatives that suboptimize the effectiveness of corporate strategies
(McKeen and Smith 1996). Strategy implementation must also be carefully aligned to
16 Section I • Delivering Value with IT
ensure the integration of business and IT efforts (Smith and McKeen 2010). Finally, com-
panies often try to address too many priorities, leading to an inadequate focus on key
strategic goals (Weiss and Thorogood 2011).
However, strategic alignment is only one problem facing IT managers when they
develop IT strategy. With IT becoming so much more central to the development and
delivery of business strategy, much mor.
JUSTIFICATION OF, AND BENEFITS REALIZATION BEYOND IT INVESTMENTS: ANALYSIS F...ijmvsc
This work looked at the justification of IT investments in general, to draw important conclusions that could
be beneficial to IT project managers and professionals, and then zero in on the angle of benefits realization
beyond IT investments.About 30 categories/sets of research outputs or articles out of more than 60 articles
reviewed were used for this work. No primary data was employed for this work. Articles were sourced from
databases such as Google Scholar, Research Gate, Academia.edu, Google search engine, Elsevier, and so
on. The main themes used for the search were IT investments, Justification for IT investments, IT
investments benefit determination, value creation beyond IT investments, and so on. The results showed
that justification is unique to every firm, it is contextual, and so stakeholders must take into consideration
environmental factors, corporate and strategic goals, experience and expertise of stakeholders, and so on,
to design its framework and measures to justify IT investments. Zeroing on benefits realization, two things
run through all the discussions: benefits realization of IT investments must take into consideration the
organization's strategic objectives and that they do not simply emerge, as if by magic. Their realization has
to be planned, delivered, reviewed, and exploited to ensure value realization on a more consistent/constant
basis.
COMPLEMENTARY ASSETS AND VALUE CREATION BEYOND INFORMATION TECHNOLOGY INVESTM...ijmvsc
This work was aimed at analyzing the relationships between some selected complementary assets (independent variables) and some specified benefits/value creation (dependent variables), beyond Information Technology (IT) investments in an organizational setting. The purpose was to determine
significant complementary assets that impact greatly on value creation beyond IT investments.With 175 questionnaires sent to IT project and program managers of companies in the Telecom industry in Ghana, and analyzed,the following findings were revealed: for value creation beyond IT investments to be
achieved, the staff must be computer literate, there must be the availability of experts and firms around to help in resolving IT problems quickly and timely that crop up, and the staff must be empowered to be innovative with IT. Again, the results showed that most of the complementary assets employed in this work, tend to favor benefits of Improved staff morale and Improved business processes. Also, one of the strongest positive relationships was found to exist between “supportive organizational culture that values efficiency and effectiveness” as predictor variable and “service/product quality” as response
variable.
This research essay descriptively details what is meant by Information Technology Strategy and why in increasingly automated business environment of today, successful firms are those that not only have an established IT strategy but also keep updating the same based on changes that may be encountered. Further explained in extreme detail are the reasons that necessitate the need for organizations of today to have an established and implemented IT strategy other than the competition that may be faced from other organizations which have an IT strategy. Also detailed are the values and benefits that may be derived by organizations by having an IT strategy and what qualities and elements of an IT strategy would need to be established in order to derive the maximum amount of value from an IT strategy.
COMPLEMENTARY ASSETS AND VALUE CREATION BEYOND INFORMATION TECHNOLOGY INVES...ijmvsc
This work was aimed at analyzing the relationships between some selected complementary assets
(independent variables) and some specified benefits/value creation (dependent variables), beyond
Information Technology (IT) investments in an organizational setting. The purpose was to determine
significant complementary assets that impact greatly on value creation beyond IT investments.With 175
questionnaires sent to IT project and program managers of companies in the Telecom industry in Ghana,
and analyzed,thefollowing findings were revealed: for value creation beyond IT investments to be
achieved, the staff must be computer literate, there must be the availability of experts and firms around to
help in resolving IT problems quickly and timely that crop up, and the staff must be empowered to be
innovative with IT. Again, the results showed that most of the complementary assets employed in this
work, tend to favor benefits of Improved staff morale and Improved business processes. Also, one of the
strongest positive relationships was found to exist between “supportive organizational culture that
values efficiency and effectiveness” as predictor variable and “service/product quality” as response
variable.
This document presents a study that develops a model to assess the value-based contribution of information technology (IT) to firm performance. The study aims to address contradictory findings from prior research on the productivity paradox by taking a process-oriented approach. The model proposes that IT business value can be measured through its impact on processes within a firm's value chain. Survey data from 180 executives is used to test the model, with structural equation modeling confirming that perceptual ratings of IT's impact on value chain processes can provide a measure of IT business value at the organizational level.
CHAPTER-1 Discussion 11) DiscussionCOLLAPSEIT value Infor.docxmccormicknadine86
CHAPTER-1 Discussion 1
1)
Discussion
COLLAPSE
IT value: Information Technology is used everywhere in the world. Information technology provides many services to other organizations and ends users such as by providing computer services, network services, hosting the applications and sites and other engineering applications. IT organizations price their services from their clients and customers. Many clients think that service providers are costing them more because they only know a few benefits about the services they are taking. For this service providers need to communicate and explain IT value with their customers, the benefits and features they are getting in it.
The IT value is realized when every product and service is analyzed and its benefits are used completely by the organization. This helps to make decisions about investment in new technology.
Reference:
Meyer, N. D. (2007, December 1). IT Value: What It Really Means. Retrieved from https://www.cio.com/article/2437551/it-value--what-it-really-means.html.
2)
Week 1 - Discussion Attachment
COLLAPSE
IT value is defined as capturing and understanding the business value derived from both financial and economical in information technology which consists of various components and systems. IT value consists of various category which include revenue quantity quality and cost. IT value is determined based on the organizational performance and the impact of information technology both at a higher level and medium level and organization hierarchy (John, 2003). IT value comprises of efficiency impact and competitive level impact. The IT value is understood by various means of technologies like using business intelligence and other data science technology is to understand the customer and what can be provided to create value internally as well as to any client. The organization's ethics and industrial standards will elevate the IT value of a company. IT value provides detailed information about the organization process and their correlation between the employees and their ideas and approach towards implementation and other projects.
Information technology is realized when the organization is not performing as per their industrial standards, The rectification is can be made by the senior executives and other decision-makers whether the IT value is being fulfilled internally and externally. The most important thing about IT realization is organization is justifying the services to the client (John, 2003)
References:
Glaser, John. (2003). Analyzing information technology value. Healthcare financial management : journal of the Healthcare Financial Management Association. 57. 98-100, 102, 104.
Lee, Byungtae & Menon, Nirup. (2000). Information Technology Value Through Different Normative Lenses.. J. of Management Information Systems. 16. 99-120. 10.1080/07421222.2000.11518267.
CHAPTER-1 Discussion 2
3)
Week 1 Discussion
Principles for delivering value
In almost all sections, IT can be d ...
The art of value creation with information technology potentials in business ...Alexander Decker
This document discusses the role of strategic information systems in business value creation. It defines value creation as activities that reduce costs and increase profits through efficiency. Strategic information systems involves using information technology and managerial skills to identify business problems and create solutions that help organizations achieve their objectives. The document analyzes how strategic information systems can help realize value by focusing on business processes and capturing value through technologies like the internet, business intelligence, and collaboration systems. It argues that information systems strategy is important for competitive advantage and should be integrated with business strategy for organizations to effectively create value.
If the CIO is to be valued as a strategic actor, how can he bring.docxTatianaMajor22
If the CIO is to be valued as a strategic actor, how can he bring to the table the ethos of alignment, bound to the demands of process strategic planning to move IT to the forefront of the organization's future? Is there a lack of information on strategic planning? Nope. I think the process of planning is poorly understood, and rarely endorsed. The reasons are simple enough. Planning requires a commitment of resources (time, talent, money); it requires insight; it requires a total immersion in the corporate culture. While organizations do plan, planning is invariably attached to the budget process. It is typically here that the CIO lays out his/her vision for the coming year Now a few years ago authors began writing on the value of aligning IT purpose to organizational purpose. They wrote at a time when enterprise architectural planning was fairly new, and enterprise resource management was on the lips of every executive. My view is that alignment is a natural process driven by the availability of the tools to accomplish it. Twenty years ago making sense of IT was more about processing power, and database management. We are in a new age of IT, and it is the computer that is the network, not the network as an independent self-contained exchange of information. If you will spend some time reviewing the basic materials I provided on strategic planning and alignment, we can begin our discussions for the course. Again, here is the problem I would like for us to tackle: If the CIO is to be valued as a strategic actor, how can he bring to the table the ethos of alignment, bound to the demands of process strategic planning to move IT to the forefront of the organization's future? Most of the articles I bundled together for this week are replete with tables and charts. These can be a heavy read. Your approach should be to review these articles for the "big ideas" or lessons that are take away. I think these studies are significant enough that we will conclude our first week with an understanding of the roles between executive leaders, and how they see Information Technology playing a role in shaping a business strategy.
Read the articles to answer the question. Please No Plagerism or verbatim but you are allowed to quote from the article.
Achieving and Sustaining
Business-IT Alignment
Jerry Luftman
Tom Brier
I
n recent decades, billions of dollars have been invested in intormation tech-
nology (IT). A key concern of business executives is alignment—applying IT
in an appropriate and timely way and in harmony with business strategies,
goals, and needs. This issue addresses both how IT is aligned with the busi-
ness and how the business should be aligned with IT Frustratingly, organizations
seem to find it difficult or impossible to harness the power of information tech-
nology for their own long-term benefit, even though there is worldwide evi-
dence that IT has the power to transform whole industries and markets.' How
can companies.
This document discusses connecting IT strategy to business value. It argues that IT should not be seen merely as an infrastructure utility, but rather as a strategic enabler. The value of IT is negotiated between IT providers and business users. For IT to have strategic value, it must be integrated with business needs and processes. The document examines different views on IT strategy and discusses balancing operational effectiveness with strategic positioning of IT.
Chapter 3Linking IT to Business Metrics From the first time IT.docxwalterl4
Chapter 3
Linking IT to Business Metrics
From the first time IT started making a significant dent in corporate balance sheets, the holy grail of academics, consultants, and business and IT managers has been to show that what a company spends on IT has a direct impact on its performance. Early efforts to do this, such as those trying to link various measures of IT input (e.g., budget dollars, number of PCs, number of projects) with various measures of business performance (e.g., profit, productivity, stock value) all failed to show any relationship at all (Marchand et al. 2000). Since then, everyone has prop- erly concluded that the relationship between what is done in IT and what happens in the business is considerably more complex than these studies first supposed. In fact, many researchers would suggest that the relationship is so filtered through a variety of “conversion effects” (Cronk and Fitzgerald 1999) as to be practically impossible to demonstrate. Most IT managers would agree. They have long argued that technology is not the major stumbling block to achieving business performance; it is the business itself—the processes, the managers, the culture, and the skills—that makes the differ- ence. Therefore, it is simply not realistic to expect to see a clear correlation between IT and business performance at any level. When technology is successful, it is a team effort, and the contributions of the IT and business components of an initiative cannot and should not be separated.
Nevertheless, IT expenditures must be justified. Thus, most companies have concentrated on determining the “business value” that specific IT projects deliver. By focusing on a goal that matters to business (e.g., better information, faster transaction processing, reduced staff), then breaking this goal down into smaller projects that IT can affect directly, they have tried to “peel the onion” and show specifically how IT delivers value in a piecemeal fashion. Thus, a series of surrogate measures are usually used to demonstrate IT’s impact in an organization. (See Chapter 1 for more details.)
More recently, companies are taking another look at business performance met- rics and IT. They believe it is time to “put the onion back together” and focus on what
1 This chapter is based on the authors’ previously published article, Smith, H. A., J. D. McKeen, and C. Street. “Linking IT to Business Metrics.” Journal of Information Science and Technology 1, no. 1 (2004): 13–26. Reproduced by permission of the Information Institute.
1
27
28 Section I • Delivering Value with IT
really matters to the enterprise. This perspective argues that employees who truly understand what their business is trying to achieve can sense the right ways to per- sonally improve performance that will show up at a business unit and organizational level. “People who understand the business and are informed will be proactive and ... have a disposition to create business value every day in many.
2C h a p t e r1 Developing and Delivering on the it Va.docxBHANU281672
2
C h a p t e r
1 Developing and Delivering on the it Value Proposition1
1 This chapter is based on the authors’ previously published article, Smith, H. A., and J. D. McKeen.
“Developing and Delivering on the IT Value Proposition.” Communications of the Association for Information
Systems 11 (April 2003): 438–50. Reproduced by permission of the Association for Information Systems.
It’s déjà vu all over again. For at least twenty years, business leaders have been trying to figure out exactly how and where IT can be of value in their organizations. And IT managers have been trying to learn how to deliver this value. When IT was
used mainly as a productivity improvement tool in small areas of a business, this was
a relatively straightforward process. Value was measured by reduced head counts—
usually in clerical areas—and/or the ability to process more transactions per person.
However, as systems grew in scope and complexity, unfortunately so did the risks. Very
few companies escaped this period without making at least a few disastrous invest-
ments in systems that didn’t work or didn’t deliver the bottom-line benefits executives
thought they would. Naturally, fingers were pointed at IT.
With the advent of the strategic use of IT in business, it became even more difficult
to isolate and deliver on the IT value proposition. It was often hard to tell if an invest-
ment had paid off. Who could say how many competitors had been deterred or how
many customers had been attracted by a particular IT initiative? Many companies can
tell horror stories of how they have been left with a substantial investment in new forms
of technology with little to show for it. Although over the years there have been many
improvements in where and how IT investments are made and good controls have been
established to limit time and cost overruns, we are still not able to accurately articulate
and deliver on a value proposition for IT when it comes to anything other than simple
productivity improvements or cost savings.
Problems in delivering IT value can lie with how a value proposition is conceived
or in what is done to actually implement an idea—that is, selecting the right project and
doing the project right (Cooper et al. 2000; McKeen and Smith 2003; Peslak 2012). In
addition, although most firms attempt to calculate the expected payback of an IT invest-
ment before making it, few actually follow up to ensure that value has been achieved or
to question what needs to be done to make sure that value will be delivered.
Chapter 1 • Developing and Delivering on the IT Value Proposition 3
This chapter first looks at the nature of IT value and “peels the onion” into its
different layers. Then it examines the three components of delivering IT value: value
identification, conversion, and value realization. Finally, it identifies five general
principles for ensuring IT value will be achieved.
Peeling the OniOn: Understanding it ValUe
Th.
2C h a p t e r1 Developing and Delivering on the it Va.docxgilbertkpeters11344
2
C h a p t e r
1 Developing and Delivering on the it Value Proposition1
1 This chapter is based on the authors’ previously published article, Smith, H. A., and J. D. McKeen.
“Developing and Delivering on the IT Value Proposition.” Communications of the Association for Information
Systems 11 (April 2003): 438–50. Reproduced by permission of the Association for Information Systems.
It’s déjà vu all over again. For at least twenty years, business leaders have been trying to figure out exactly how and where IT can be of value in their organizations. And IT managers have been trying to learn how to deliver this value. When IT was
used mainly as a productivity improvement tool in small areas of a business, this was
a relatively straightforward process. Value was measured by reduced head counts—
usually in clerical areas—and/or the ability to process more transactions per person.
However, as systems grew in scope and complexity, unfortunately so did the risks. Very
few companies escaped this period without making at least a few disastrous invest-
ments in systems that didn’t work or didn’t deliver the bottom-line benefits executives
thought they would. Naturally, fingers were pointed at IT.
With the advent of the strategic use of IT in business, it became even more difficult
to isolate and deliver on the IT value proposition. It was often hard to tell if an invest-
ment had paid off. Who could say how many competitors had been deterred or how
many customers had been attracted by a particular IT initiative? Many companies can
tell horror stories of how they have been left with a substantial investment in new forms
of technology with little to show for it. Although over the years there have been many
improvements in where and how IT investments are made and good controls have been
established to limit time and cost overruns, we are still not able to accurately articulate
and deliver on a value proposition for IT when it comes to anything other than simple
productivity improvements or cost savings.
Problems in delivering IT value can lie with how a value proposition is conceived
or in what is done to actually implement an idea—that is, selecting the right project and
doing the project right (Cooper et al. 2000; McKeen and Smith 2003; Peslak 2012). In
addition, although most firms attempt to calculate the expected payback of an IT invest-
ment before making it, few actually follow up to ensure that value has been achieved or
to question what needs to be done to make sure that value will be delivered.
Chapter1 • DevelopingandDeliveringontheITValueProposition 3
This chapter first looks at the nature of IT value and “peels the onion” into its
different layers. Then it examines the three components of delivering IT value: value
identification, conversion, and value realization. Finally, it identifies five general
principles for ensuring IT value will be achieved.
Peeling the OniOn: Understanding it ValUe
Thirty years .
Challenges in Business and IT AlignmentVidur Pandit
The document discusses challenges with aligning business and IT. It provides context on the importance of business-IT alignment and defines key concepts. The phases of the business-IT alignment cycle are also outlined, including plan, model, manage and measure. The goal of alignment is to ensure IT supports business strategies and processes efficiently.
This document outlines a technology management plan for the fictitious company Krafty Solutions. The plan emphasizes that technology integration should be business-driven and measure success through key performance indicators tied to business goals. It recommends strategic initiatives to analyze, develop, implement and maintain information systems that support business decisions through necessary IT integration. The plan also stresses the importance of organizational structures, communication, information security, and using tools like decision support systems to help managers make effective, data-driven decisions. It advocates periodic reviews to ensure the technology management plan remains aligned with business needs and strategic vision.
Fueling Innovation through InformationTechnology in SMEsb.docxhanneloremccaffery
Fueling Innovation through Information
Technology in SMEs*
by Clay Dibrell, Peter S. Davis, and Justin Craig
This paper describes a study that investigates the mediating effects of information
technology (IT) on the relationships among product and process innovations and firm
performance (measured in multiple profitability and growth rate metrics). Using
structural equation modeling on a sample of 397 small and medium-sized enterprises
(SMEs), we find evidence that (1) increases on the strategic emphasis placed on
innovation, both product and process, positively impact the prominence managers
place on IT; (2) the impact of innovation (both product and process) on performance
(both profitability and growth) is primarily indirect, felt via the mechanism of the
importance managers place on IT; and (3) an increased emphasis on IT abets
managers’ perception of their firms’ performance, as compared with that observed
among peer firms (other SMEs).
A commitment to innovation has long
been considered to be important to the
success of entrepreneurial ventures and
small firms (Fiol 1996). Research has
shown that innovation stimulates ven-
tures’ growth (e.g., Wolff and Pett
2006; Motwani et al. 1999; Hax and
Majluf 1991) and also provides a key
source of competitive advantage in the
absence of scale economies (Lewis et al.
2002). Considered from the resource-
based view of the firm (Barney 1991),
successful innovation may be dependent
on the presence of other organization-
*The authors wish to thank Don Neubaum and the anonymous reviewers for their helpful
comments and direction. Financial support was provided by the Austin Family Business
Program in the College of Business at Oregon State University.
Clay Dibrell is associate professor of strategic management in the College of Business at
Oregon State University and research fellow at Bond University.
Peter S. Davis is professor and chair of the Department of Management in the Belk College
of Business at the University of North Carolina–Charlotte.
Justin Craig is associate professor of family business and entrepreneurship at Bond
University.
Address correspondence to: Clay Dibrell, 200 Bexell Hall, College of Business, Oregon State
University, Corvallis, OR 97331. Tel: (541) 737-6061. E-mail: [email protected]
Journal of Small Business Management 2008 46(2), pp. 203–218
DIBRELL, DAVIS, AND CRAIG 203
mailto:[email protected]
specific skills and capabilities. For
example, substantial evidence has begun
to accumulate that suggests that appro-
priate strategic employment of informa-
tion technology (IT) may be essential
in translating strategies (e.g., innovation)
into enhanced firm performance (e.g.,
Ray, Muhanna, and Barney 2005;
Sakaguchi, Nicovich, and Dibrell 2004).
A direct linkage between IT and firm
performance was established by Powell
and Dent-Micallef (1997). Bharadwaj
(2000) found that high IT-capable firms
(those that invest heavily in IT) outper-
form competitors that do not inve ...
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Sunil Kumar Reddy Donuru
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sdonuru_Assignment.docx
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11 M y p a p e rM y p a p e r 44 S t u d e n t p a p e rS t u d e n t p a p e r 22 S t u d e n t p a p e rS t u d e n t p a p e r
University of the Cumberlands
Sunil Reddy Donuru
Prof: Dr Jess Schwartz
The main purpose of this article is to show how the IT strategic emphases and IT investments can affect a firm’s profitability level and market
value. To further show the clear effect, the author used empirical tests founded from the documented information collected from over 300
firms in U.S. on this clear picture, the author concludes that organizations with a dual emphasis in their IT system have a higher Tobin's Q
than firms with an income or a cost emphasis at its mean estimation ventures. The author suggests that firms may decide on using IT strategic
emphasis for one reason alone and that is to moderate the strong correlation between IT investments and firm performance. The major
discovery of the research was that firms that have adopted dual-emphasis on IT strategies have a stronger IT–profitability relationship than sin-
gle-emphasis firms, these firms also have a stronger IT–Tobin’s Q relationship than firms that have adopted the revenue-emphasis strategy.
The conclusions from this research has been used all over the world by managers and business owners to help them in making informed deci-
sions on how to allocate assets for IT strategies that can efficiently support the overall goal of an organization. For average levels of IT ex-
penditure, a dual emphasis in IT strategy satisfies as long as a higher firm valuation, and a larger amount of IT speculations are made with d ...
Total IT spending as a percentage of revenue, total IT spending per user, and total IT spending per PC are three useful metrics for managing an IT organization and benchmarking against other companies. Total IT spending as a percentage of revenue indicates how efficiently a company spends on IT compared to industry standards and allows identification of opportunities for improvement. Total IT spending per user and per PC provide additional perspectives beyond total spending as a percentage of revenue to account for factors like shared devices. Benchmarking against other companies using these metrics helps identify best practices and areas for process improvement to increase efficiency and reduce costs.
Advantages And Limitations Of Performance Measurement Tools The Balanced Sco...Andrea Porter
This document discusses performance measurement tools, specifically comparing the Balanced Scorecard (BSC) to other tools. It notes that the BSC considers both financial and non-financial metrics to determine organizational performance, representing both a measurement tool and a performance management system. While widely used, the BSC has some limitations in dynamic environments. The document advocates combining various tools and approaches rather than relying solely on one evaluation framework like the BSC, to better align strategy as the business environment changes.
The Generic IS/IT Bussiness Value Category : Cases In IndonesiaAinul Yaqin
1. The document discusses a study that identified business values from IS/IT implementations in various organizations in Indonesia.
2. The research identified 13 categories and 74 sub-categories of generic IS/IT business values. Four values were unique to Indonesia, including reducing application development costs and subscription costs.
3. Increasing image by complying with regulations and using branded systems were also identified as unique to Indonesia's developing market context. The study provides insight into how IS/IT creates value in Indonesian organizations.
Connecting IT and Business Value Through Balanced ScorecardGlen Alleman
As IT searches for its seat at the table, negotiating IT’s
value to the business and the business’s need for the
value IT provides reveals a visible gap in many organizations.
When the CIO acts like a CTO, he or she provides
the technologies needed for the business but does
not engage in a conversation about the strategic needs
for these technologies. IT then continues to provide services
and focus on operational excellence.
This document summarizes a study that explores the relationship between IT outsourcing (ITO) and business and IT alignment. The study aims to provide recommendations for how outsourcing relationships can support business and IT alignment. Through a literature review and analysis of four case studies, the study found that higher levels of motivation for outsourcing, relationship between outsourcer and provider, and alignment maturity of the outsourcer can lead to positive effects of ITO on business and IT alignment. Organizational turbulence on either side can negatively impact the relationship. Service providers also tended to assess relationships more positively than outsourcers.
One way to improve your verbal communication is to own your thoughts.docxjuliennehar
One way to improve your verbal communication is to own your thoughts and feelings.
You-language
is a way of speaking that projects responsibility onto another person and tends to be judgmental.
I-language
, on the other hand, is a way of speaking that owns responsibility and is descriptive rather than judgmental. Study the following example:
You-language statement
I-language statement
"You make me so mad!"
"I feel very angry when you interrupt me when I'm telling a story."
Complete the following two parts of your written assignment in one Word document. First, show your skill at translating You-language messages into I-language messages. Secondly, apply this skill to your own communication.
Part 1
Translate the following
You-language
statements into
I-language
messages.
Sentences to be translated:
You are so selfish.
You don't understand a word I'm saying.
You are too nosy; mind your own business.
You totally humiliated me in front of our friends.
You never help me around the house.
Part 2
Think of a You-language statement that you find yourself using when you communicate with a friend, family member, spouse, or romantic partner. Compose a paragraph that explains the situation in which you have used this You-language message. Consider how you would translate this You-language statement into an I-language message.
.
One paragraphHas your family experienced significant upward or .docxjuliennehar
One paragraph:
Has your family experienced significant upward or downward mobility over the past three or four generations? How do you think your values and behavior might differ had you experienced the opposite pattern of mobility? How might it have been different had your family been of a different ethnic or racial origin?
One para:
One of the more interesting topics of study is the area of deviance and social control. Choose a form of deviance with which you are familiar (not necessarily something you’ve done, but something someone you know did) and discuss why society views that behavior as deviant and whether perceptions of that behavior have changed over time. Explain which theory of deviance you think works best for understanding the deviant behavior you’ve chosen to discuss
.
More Related Content
Similar to TitleAuthorsSourceDocument TypeSubject Terms.docx
This research essay descriptively details what is meant by Information Technology Strategy and why in increasingly automated business environment of today, successful firms are those that not only have an established IT strategy but also keep updating the same based on changes that may be encountered. Further explained in extreme detail are the reasons that necessitate the need for organizations of today to have an established and implemented IT strategy other than the competition that may be faced from other organizations which have an IT strategy. Also detailed are the values and benefits that may be derived by organizations by having an IT strategy and what qualities and elements of an IT strategy would need to be established in order to derive the maximum amount of value from an IT strategy.
COMPLEMENTARY ASSETS AND VALUE CREATION BEYOND INFORMATION TECHNOLOGY INVES...ijmvsc
This work was aimed at analyzing the relationships between some selected complementary assets
(independent variables) and some specified benefits/value creation (dependent variables), beyond
Information Technology (IT) investments in an organizational setting. The purpose was to determine
significant complementary assets that impact greatly on value creation beyond IT investments.With 175
questionnaires sent to IT project and program managers of companies in the Telecom industry in Ghana,
and analyzed,thefollowing findings were revealed: for value creation beyond IT investments to be
achieved, the staff must be computer literate, there must be the availability of experts and firms around to
help in resolving IT problems quickly and timely that crop up, and the staff must be empowered to be
innovative with IT. Again, the results showed that most of the complementary assets employed in this
work, tend to favor benefits of Improved staff morale and Improved business processes. Also, one of the
strongest positive relationships was found to exist between “supportive organizational culture that
values efficiency and effectiveness” as predictor variable and “service/product quality” as response
variable.
This document presents a study that develops a model to assess the value-based contribution of information technology (IT) to firm performance. The study aims to address contradictory findings from prior research on the productivity paradox by taking a process-oriented approach. The model proposes that IT business value can be measured through its impact on processes within a firm's value chain. Survey data from 180 executives is used to test the model, with structural equation modeling confirming that perceptual ratings of IT's impact on value chain processes can provide a measure of IT business value at the organizational level.
CHAPTER-1 Discussion 11) DiscussionCOLLAPSEIT value Infor.docxmccormicknadine86
CHAPTER-1 Discussion 1
1)
Discussion
COLLAPSE
IT value: Information Technology is used everywhere in the world. Information technology provides many services to other organizations and ends users such as by providing computer services, network services, hosting the applications and sites and other engineering applications. IT organizations price their services from their clients and customers. Many clients think that service providers are costing them more because they only know a few benefits about the services they are taking. For this service providers need to communicate and explain IT value with their customers, the benefits and features they are getting in it.
The IT value is realized when every product and service is analyzed and its benefits are used completely by the organization. This helps to make decisions about investment in new technology.
Reference:
Meyer, N. D. (2007, December 1). IT Value: What It Really Means. Retrieved from https://www.cio.com/article/2437551/it-value--what-it-really-means.html.
2)
Week 1 - Discussion Attachment
COLLAPSE
IT value is defined as capturing and understanding the business value derived from both financial and economical in information technology which consists of various components and systems. IT value consists of various category which include revenue quantity quality and cost. IT value is determined based on the organizational performance and the impact of information technology both at a higher level and medium level and organization hierarchy (John, 2003). IT value comprises of efficiency impact and competitive level impact. The IT value is understood by various means of technologies like using business intelligence and other data science technology is to understand the customer and what can be provided to create value internally as well as to any client. The organization's ethics and industrial standards will elevate the IT value of a company. IT value provides detailed information about the organization process and their correlation between the employees and their ideas and approach towards implementation and other projects.
Information technology is realized when the organization is not performing as per their industrial standards, The rectification is can be made by the senior executives and other decision-makers whether the IT value is being fulfilled internally and externally. The most important thing about IT realization is organization is justifying the services to the client (John, 2003)
References:
Glaser, John. (2003). Analyzing information technology value. Healthcare financial management : journal of the Healthcare Financial Management Association. 57. 98-100, 102, 104.
Lee, Byungtae & Menon, Nirup. (2000). Information Technology Value Through Different Normative Lenses.. J. of Management Information Systems. 16. 99-120. 10.1080/07421222.2000.11518267.
CHAPTER-1 Discussion 2
3)
Week 1 Discussion
Principles for delivering value
In almost all sections, IT can be d ...
The art of value creation with information technology potentials in business ...Alexander Decker
This document discusses the role of strategic information systems in business value creation. It defines value creation as activities that reduce costs and increase profits through efficiency. Strategic information systems involves using information technology and managerial skills to identify business problems and create solutions that help organizations achieve their objectives. The document analyzes how strategic information systems can help realize value by focusing on business processes and capturing value through technologies like the internet, business intelligence, and collaboration systems. It argues that information systems strategy is important for competitive advantage and should be integrated with business strategy for organizations to effectively create value.
If the CIO is to be valued as a strategic actor, how can he bring.docxTatianaMajor22
If the CIO is to be valued as a strategic actor, how can he bring to the table the ethos of alignment, bound to the demands of process strategic planning to move IT to the forefront of the organization's future? Is there a lack of information on strategic planning? Nope. I think the process of planning is poorly understood, and rarely endorsed. The reasons are simple enough. Planning requires a commitment of resources (time, talent, money); it requires insight; it requires a total immersion in the corporate culture. While organizations do plan, planning is invariably attached to the budget process. It is typically here that the CIO lays out his/her vision for the coming year Now a few years ago authors began writing on the value of aligning IT purpose to organizational purpose. They wrote at a time when enterprise architectural planning was fairly new, and enterprise resource management was on the lips of every executive. My view is that alignment is a natural process driven by the availability of the tools to accomplish it. Twenty years ago making sense of IT was more about processing power, and database management. We are in a new age of IT, and it is the computer that is the network, not the network as an independent self-contained exchange of information. If you will spend some time reviewing the basic materials I provided on strategic planning and alignment, we can begin our discussions for the course. Again, here is the problem I would like for us to tackle: If the CIO is to be valued as a strategic actor, how can he bring to the table the ethos of alignment, bound to the demands of process strategic planning to move IT to the forefront of the organization's future? Most of the articles I bundled together for this week are replete with tables and charts. These can be a heavy read. Your approach should be to review these articles for the "big ideas" or lessons that are take away. I think these studies are significant enough that we will conclude our first week with an understanding of the roles between executive leaders, and how they see Information Technology playing a role in shaping a business strategy.
Read the articles to answer the question. Please No Plagerism or verbatim but you are allowed to quote from the article.
Achieving and Sustaining
Business-IT Alignment
Jerry Luftman
Tom Brier
I
n recent decades, billions of dollars have been invested in intormation tech-
nology (IT). A key concern of business executives is alignment—applying IT
in an appropriate and timely way and in harmony with business strategies,
goals, and needs. This issue addresses both how IT is aligned with the busi-
ness and how the business should be aligned with IT Frustratingly, organizations
seem to find it difficult or impossible to harness the power of information tech-
nology for their own long-term benefit, even though there is worldwide evi-
dence that IT has the power to transform whole industries and markets.' How
can companies.
This document discusses connecting IT strategy to business value. It argues that IT should not be seen merely as an infrastructure utility, but rather as a strategic enabler. The value of IT is negotiated between IT providers and business users. For IT to have strategic value, it must be integrated with business needs and processes. The document examines different views on IT strategy and discusses balancing operational effectiveness with strategic positioning of IT.
Chapter 3Linking IT to Business Metrics From the first time IT.docxwalterl4
Chapter 3
Linking IT to Business Metrics
From the first time IT started making a significant dent in corporate balance sheets, the holy grail of academics, consultants, and business and IT managers has been to show that what a company spends on IT has a direct impact on its performance. Early efforts to do this, such as those trying to link various measures of IT input (e.g., budget dollars, number of PCs, number of projects) with various measures of business performance (e.g., profit, productivity, stock value) all failed to show any relationship at all (Marchand et al. 2000). Since then, everyone has prop- erly concluded that the relationship between what is done in IT and what happens in the business is considerably more complex than these studies first supposed. In fact, many researchers would suggest that the relationship is so filtered through a variety of “conversion effects” (Cronk and Fitzgerald 1999) as to be practically impossible to demonstrate. Most IT managers would agree. They have long argued that technology is not the major stumbling block to achieving business performance; it is the business itself—the processes, the managers, the culture, and the skills—that makes the differ- ence. Therefore, it is simply not realistic to expect to see a clear correlation between IT and business performance at any level. When technology is successful, it is a team effort, and the contributions of the IT and business components of an initiative cannot and should not be separated.
Nevertheless, IT expenditures must be justified. Thus, most companies have concentrated on determining the “business value” that specific IT projects deliver. By focusing on a goal that matters to business (e.g., better information, faster transaction processing, reduced staff), then breaking this goal down into smaller projects that IT can affect directly, they have tried to “peel the onion” and show specifically how IT delivers value in a piecemeal fashion. Thus, a series of surrogate measures are usually used to demonstrate IT’s impact in an organization. (See Chapter 1 for more details.)
More recently, companies are taking another look at business performance met- rics and IT. They believe it is time to “put the onion back together” and focus on what
1 This chapter is based on the authors’ previously published article, Smith, H. A., J. D. McKeen, and C. Street. “Linking IT to Business Metrics.” Journal of Information Science and Technology 1, no. 1 (2004): 13–26. Reproduced by permission of the Information Institute.
1
27
28 Section I • Delivering Value with IT
really matters to the enterprise. This perspective argues that employees who truly understand what their business is trying to achieve can sense the right ways to per- sonally improve performance that will show up at a business unit and organizational level. “People who understand the business and are informed will be proactive and ... have a disposition to create business value every day in many.
2C h a p t e r1 Developing and Delivering on the it Va.docxBHANU281672
2
C h a p t e r
1 Developing and Delivering on the it Value Proposition1
1 This chapter is based on the authors’ previously published article, Smith, H. A., and J. D. McKeen.
“Developing and Delivering on the IT Value Proposition.” Communications of the Association for Information
Systems 11 (April 2003): 438–50. Reproduced by permission of the Association for Information Systems.
It’s déjà vu all over again. For at least twenty years, business leaders have been trying to figure out exactly how and where IT can be of value in their organizations. And IT managers have been trying to learn how to deliver this value. When IT was
used mainly as a productivity improvement tool in small areas of a business, this was
a relatively straightforward process. Value was measured by reduced head counts—
usually in clerical areas—and/or the ability to process more transactions per person.
However, as systems grew in scope and complexity, unfortunately so did the risks. Very
few companies escaped this period without making at least a few disastrous invest-
ments in systems that didn’t work or didn’t deliver the bottom-line benefits executives
thought they would. Naturally, fingers were pointed at IT.
With the advent of the strategic use of IT in business, it became even more difficult
to isolate and deliver on the IT value proposition. It was often hard to tell if an invest-
ment had paid off. Who could say how many competitors had been deterred or how
many customers had been attracted by a particular IT initiative? Many companies can
tell horror stories of how they have been left with a substantial investment in new forms
of technology with little to show for it. Although over the years there have been many
improvements in where and how IT investments are made and good controls have been
established to limit time and cost overruns, we are still not able to accurately articulate
and deliver on a value proposition for IT when it comes to anything other than simple
productivity improvements or cost savings.
Problems in delivering IT value can lie with how a value proposition is conceived
or in what is done to actually implement an idea—that is, selecting the right project and
doing the project right (Cooper et al. 2000; McKeen and Smith 2003; Peslak 2012). In
addition, although most firms attempt to calculate the expected payback of an IT invest-
ment before making it, few actually follow up to ensure that value has been achieved or
to question what needs to be done to make sure that value will be delivered.
Chapter 1 • Developing and Delivering on the IT Value Proposition 3
This chapter first looks at the nature of IT value and “peels the onion” into its
different layers. Then it examines the three components of delivering IT value: value
identification, conversion, and value realization. Finally, it identifies five general
principles for ensuring IT value will be achieved.
Peeling the OniOn: Understanding it ValUe
Th.
2C h a p t e r1 Developing and Delivering on the it Va.docxgilbertkpeters11344
2
C h a p t e r
1 Developing and Delivering on the it Value Proposition1
1 This chapter is based on the authors’ previously published article, Smith, H. A., and J. D. McKeen.
“Developing and Delivering on the IT Value Proposition.” Communications of the Association for Information
Systems 11 (April 2003): 438–50. Reproduced by permission of the Association for Information Systems.
It’s déjà vu all over again. For at least twenty years, business leaders have been trying to figure out exactly how and where IT can be of value in their organizations. And IT managers have been trying to learn how to deliver this value. When IT was
used mainly as a productivity improvement tool in small areas of a business, this was
a relatively straightforward process. Value was measured by reduced head counts—
usually in clerical areas—and/or the ability to process more transactions per person.
However, as systems grew in scope and complexity, unfortunately so did the risks. Very
few companies escaped this period without making at least a few disastrous invest-
ments in systems that didn’t work or didn’t deliver the bottom-line benefits executives
thought they would. Naturally, fingers were pointed at IT.
With the advent of the strategic use of IT in business, it became even more difficult
to isolate and deliver on the IT value proposition. It was often hard to tell if an invest-
ment had paid off. Who could say how many competitors had been deterred or how
many customers had been attracted by a particular IT initiative? Many companies can
tell horror stories of how they have been left with a substantial investment in new forms
of technology with little to show for it. Although over the years there have been many
improvements in where and how IT investments are made and good controls have been
established to limit time and cost overruns, we are still not able to accurately articulate
and deliver on a value proposition for IT when it comes to anything other than simple
productivity improvements or cost savings.
Problems in delivering IT value can lie with how a value proposition is conceived
or in what is done to actually implement an idea—that is, selecting the right project and
doing the project right (Cooper et al. 2000; McKeen and Smith 2003; Peslak 2012). In
addition, although most firms attempt to calculate the expected payback of an IT invest-
ment before making it, few actually follow up to ensure that value has been achieved or
to question what needs to be done to make sure that value will be delivered.
Chapter1 • DevelopingandDeliveringontheITValueProposition 3
This chapter first looks at the nature of IT value and “peels the onion” into its
different layers. Then it examines the three components of delivering IT value: value
identification, conversion, and value realization. Finally, it identifies five general
principles for ensuring IT value will be achieved.
Peeling the OniOn: Understanding it ValUe
Thirty years .
Challenges in Business and IT AlignmentVidur Pandit
The document discusses challenges with aligning business and IT. It provides context on the importance of business-IT alignment and defines key concepts. The phases of the business-IT alignment cycle are also outlined, including plan, model, manage and measure. The goal of alignment is to ensure IT supports business strategies and processes efficiently.
This document outlines a technology management plan for the fictitious company Krafty Solutions. The plan emphasizes that technology integration should be business-driven and measure success through key performance indicators tied to business goals. It recommends strategic initiatives to analyze, develop, implement and maintain information systems that support business decisions through necessary IT integration. The plan also stresses the importance of organizational structures, communication, information security, and using tools like decision support systems to help managers make effective, data-driven decisions. It advocates periodic reviews to ensure the technology management plan remains aligned with business needs and strategic vision.
Fueling Innovation through InformationTechnology in SMEsb.docxhanneloremccaffery
Fueling Innovation through Information
Technology in SMEs*
by Clay Dibrell, Peter S. Davis, and Justin Craig
This paper describes a study that investigates the mediating effects of information
technology (IT) on the relationships among product and process innovations and firm
performance (measured in multiple profitability and growth rate metrics). Using
structural equation modeling on a sample of 397 small and medium-sized enterprises
(SMEs), we find evidence that (1) increases on the strategic emphasis placed on
innovation, both product and process, positively impact the prominence managers
place on IT; (2) the impact of innovation (both product and process) on performance
(both profitability and growth) is primarily indirect, felt via the mechanism of the
importance managers place on IT; and (3) an increased emphasis on IT abets
managers’ perception of their firms’ performance, as compared with that observed
among peer firms (other SMEs).
A commitment to innovation has long
been considered to be important to the
success of entrepreneurial ventures and
small firms (Fiol 1996). Research has
shown that innovation stimulates ven-
tures’ growth (e.g., Wolff and Pett
2006; Motwani et al. 1999; Hax and
Majluf 1991) and also provides a key
source of competitive advantage in the
absence of scale economies (Lewis et al.
2002). Considered from the resource-
based view of the firm (Barney 1991),
successful innovation may be dependent
on the presence of other organization-
*The authors wish to thank Don Neubaum and the anonymous reviewers for their helpful
comments and direction. Financial support was provided by the Austin Family Business
Program in the College of Business at Oregon State University.
Clay Dibrell is associate professor of strategic management in the College of Business at
Oregon State University and research fellow at Bond University.
Peter S. Davis is professor and chair of the Department of Management in the Belk College
of Business at the University of North Carolina–Charlotte.
Justin Craig is associate professor of family business and entrepreneurship at Bond
University.
Address correspondence to: Clay Dibrell, 200 Bexell Hall, College of Business, Oregon State
University, Corvallis, OR 97331. Tel: (541) 737-6061. E-mail: [email protected]
Journal of Small Business Management 2008 46(2), pp. 203–218
DIBRELL, DAVIS, AND CRAIG 203
mailto:[email protected]
specific skills and capabilities. For
example, substantial evidence has begun
to accumulate that suggests that appro-
priate strategic employment of informa-
tion technology (IT) may be essential
in translating strategies (e.g., innovation)
into enhanced firm performance (e.g.,
Ray, Muhanna, and Barney 2005;
Sakaguchi, Nicovich, and Dibrell 2004).
A direct linkage between IT and firm
performance was established by Powell
and Dent-Micallef (1997). Bharadwaj
(2000) found that high IT-capable firms
(those that invest heavily in IT) outper-
form competitors that do not inve ...
81119, 10(43 AMOriginality ReportPage 1 of 7httpsucum.docxblondellchancy
8/11/19, 10(43 AMOriginality Report
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%%97
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SafeAssign Originality Report
Summer 2019 - InfoTech in a Global Economy (ITS-… • Week 14 - Written Assignment
%%98To t a l S c o r eTo t a l S c o r e:: High risk
Sunil Kumar Reddy Donuru
Submission UUID: ea534ac2-fa80-4378-4f9a-810b5a16c7a4
To t a l N u m b e r o f R eTo t a l N u m b e r o f R e……
1
H i g h e s t M a t c hH i g h e s t M a t c h
98 %
sdonuru_Assignment.docx
A v e r a g e M a t c hA v e r a g e M a t c h
98 %
S u b m i t t e d o nS u b m i t t e d o n
08/11/19
10:29 AM EDT
A v e r a g e W o r d C o u n tA v e r a g e W o r d C o u n t
944
Highest: sdonuru_Assign…
%%98Attachment 1
I n s t i t u t i o n a l d a t a b a s eI n s t i t u t i o n a l d a t a b a s e ( (33))
M y p a p e rM y p a p e r S t u d e n t p a p e rS t u d e n t p a p e r S t u d e n t p a p e rS t u d e n t p a p e r
G l o b a l d a t a b a s eG l o b a l d a t a b a s e ( (11))
S t u d e n t p a p e rS t u d e n t p a p e r
To p s o u r c e sTo p s o u r c e s ( (33))
E x c l u d e d s o u r c e sE x c l u d e d s o u r c e s ( (00))
View Originality Report - Old Design
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11 M y p a p e rM y p a p e r 44 S t u d e n t p a p e rS t u d e n t p a p e r 22 S t u d e n t p a p e rS t u d e n t p a p e r
University of the Cumberlands
Sunil Reddy Donuru
Prof: Dr Jess Schwartz
The main purpose of this article is to show how the IT strategic emphases and IT investments can affect a firm’s profitability level and market
value. To further show the clear effect, the author used empirical tests founded from the documented information collected from over 300
firms in U.S. on this clear picture, the author concludes that organizations with a dual emphasis in their IT system have a higher Tobin's Q
than firms with an income or a cost emphasis at its mean estimation ventures. The author suggests that firms may decide on using IT strategic
emphasis for one reason alone and that is to moderate the strong correlation between IT investments and firm performance. The major
discovery of the research was that firms that have adopted dual-emphasis on IT strategies have a stronger IT–profitability relationship than sin-
gle-emphasis firms, these firms also have a stronger IT–Tobin’s Q relationship than firms that have adopted the revenue-emphasis strategy.
The conclusions from this research has been used all over the world by managers and business owners to help them in making informed deci-
sions on how to allocate assets for IT strategies that can efficiently support the overall goal of an organization. For average levels of IT ex-
penditure, a dual emphasis in IT strategy satisfies as long as a higher firm valuation, and a larger amount of IT speculations are made with d ...
Total IT spending as a percentage of revenue, total IT spending per user, and total IT spending per PC are three useful metrics for managing an IT organization and benchmarking against other companies. Total IT spending as a percentage of revenue indicates how efficiently a company spends on IT compared to industry standards and allows identification of opportunities for improvement. Total IT spending per user and per PC provide additional perspectives beyond total spending as a percentage of revenue to account for factors like shared devices. Benchmarking against other companies using these metrics helps identify best practices and areas for process improvement to increase efficiency and reduce costs.
Advantages And Limitations Of Performance Measurement Tools The Balanced Sco...Andrea Porter
This document discusses performance measurement tools, specifically comparing the Balanced Scorecard (BSC) to other tools. It notes that the BSC considers both financial and non-financial metrics to determine organizational performance, representing both a measurement tool and a performance management system. While widely used, the BSC has some limitations in dynamic environments. The document advocates combining various tools and approaches rather than relying solely on one evaluation framework like the BSC, to better align strategy as the business environment changes.
The Generic IS/IT Bussiness Value Category : Cases In IndonesiaAinul Yaqin
1. The document discusses a study that identified business values from IS/IT implementations in various organizations in Indonesia.
2. The research identified 13 categories and 74 sub-categories of generic IS/IT business values. Four values were unique to Indonesia, including reducing application development costs and subscription costs.
3. Increasing image by complying with regulations and using branded systems were also identified as unique to Indonesia's developing market context. The study provides insight into how IS/IT creates value in Indonesian organizations.
Connecting IT and Business Value Through Balanced ScorecardGlen Alleman
As IT searches for its seat at the table, negotiating IT’s
value to the business and the business’s need for the
value IT provides reveals a visible gap in many organizations.
When the CIO acts like a CTO, he or she provides
the technologies needed for the business but does
not engage in a conversation about the strategic needs
for these technologies. IT then continues to provide services
and focus on operational excellence.
This document summarizes a study that explores the relationship between IT outsourcing (ITO) and business and IT alignment. The study aims to provide recommendations for how outsourcing relationships can support business and IT alignment. Through a literature review and analysis of four case studies, the study found that higher levels of motivation for outsourcing, relationship between outsourcer and provider, and alignment maturity of the outsourcer can lead to positive effects of ITO on business and IT alignment. Organizational turbulence on either side can negatively impact the relationship. Service providers also tended to assess relationships more positively than outsourcers.
Similar to TitleAuthorsSourceDocument TypeSubject Terms.docx (20)
One way to improve your verbal communication is to own your thoughts.docxjuliennehar
One way to improve your verbal communication is to own your thoughts and feelings.
You-language
is a way of speaking that projects responsibility onto another person and tends to be judgmental.
I-language
, on the other hand, is a way of speaking that owns responsibility and is descriptive rather than judgmental. Study the following example:
You-language statement
I-language statement
"You make me so mad!"
"I feel very angry when you interrupt me when I'm telling a story."
Complete the following two parts of your written assignment in one Word document. First, show your skill at translating You-language messages into I-language messages. Secondly, apply this skill to your own communication.
Part 1
Translate the following
You-language
statements into
I-language
messages.
Sentences to be translated:
You are so selfish.
You don't understand a word I'm saying.
You are too nosy; mind your own business.
You totally humiliated me in front of our friends.
You never help me around the house.
Part 2
Think of a You-language statement that you find yourself using when you communicate with a friend, family member, spouse, or romantic partner. Compose a paragraph that explains the situation in which you have used this You-language message. Consider how you would translate this You-language statement into an I-language message.
.
One paragraphHas your family experienced significant upward or .docxjuliennehar
One paragraph:
Has your family experienced significant upward or downward mobility over the past three or four generations? How do you think your values and behavior might differ had you experienced the opposite pattern of mobility? How might it have been different had your family been of a different ethnic or racial origin?
One para:
One of the more interesting topics of study is the area of deviance and social control. Choose a form of deviance with which you are familiar (not necessarily something you’ve done, but something someone you know did) and discuss why society views that behavior as deviant and whether perceptions of that behavior have changed over time. Explain which theory of deviance you think works best for understanding the deviant behavior you’ve chosen to discuss
.
one paragraph for each conceptoriginal workSocial Stratifica.docxjuliennehar
one paragraph for
each concept
original work
Social Stratification
What is social stratification? How is social class connected to social stratification? Summarize the four systems of stratification (provide examples of each). Which stratification system(s) is likely to be
open and/or closed
? Which systems reflect ascribed and/or achieved status? Explain.
Means of Production
For Karl Marx, what is the
means of production
and who owns the means of production (explain and give examples)? Distinguish among the bourgeoisie and the proletariat. What is their relationship to the means of production? Finally, describe and explain the following terms: class consciousness, dominant ideology and false consciousness.
Weber's Definitions of Class, Status Group & Party
Distinguish among Weber’s usage of the following terms: class, status group and party. Provide examples of each. Contrast Weber and Marx’s views of social class.
Cultural Capital
How is cultural capital linked to class differences? How is cultural capital linked to power differences? Explain. Discuss cultural capital in relation to material, social and cultural resources. How is cultural capital expressed in attire, housing, vacations, food and sport?
Note
: Review the following terms: relative poverty, absolute poverty, socioeconomic status (SES), prestige and esteem.
.
one pageExamine the importance of popular culture and technology.docxjuliennehar
one page
Examine the importance of popular culture and technology in the lives of all Americans, tracing thisgrowth since the 1870s.
Hint: There are two ways to organize the topics•Two topics: (1) popular culture and (2)
technology•Specific technologies and forms of culture•Automobiles•Movies•Electrical energy•Religion•Ethnic culturalism
.
One-half pageWhat accounts are included in the revenue cycleD.docxjuliennehar
One-half page
What accounts are included in the revenue cycle?
Discuss the U.S. Securities Exchange Commission's (SEC) criteria for revenue recognition.
How would internal controls impact your audit?
What types of tests would you utilize to test the internal controls for the revenue cycle?
.
One way chemists use to determine the molecular weight of large biom.docxjuliennehar
One way chemists use to determine the molecular weight of large biomolecules was to dissolve a small portion of the molecule into a solution and measure the omsmotic pressure.When 5.0 mg of an unknown covalent molecule is dissolved into 100mL of water at 25C the resulting increase in osmotic pressure 1.70*10^-4 atm. What is the closest result to the molecular weight of the unknown compound?
.
One page paper answering following questions. Describe the charact.docxjuliennehar
One page paper answering following questions.
Describe the characteristics of behavioral problems and the importance of reducing and preventing problems in the preschool classroom
Identify strategies for reducing and preventing behavioral problems in the preschool classroom
Describe techniques that facilitate quality care for a specific age group of young children with special needs
.
One page on Applying Platos Allegory of the Cave in the light o.docxjuliennehar
One page on Applying Plato's Allegory of the Cave in the light of the current fixation with digital media and platforms.
One page on one-page essay explaining Reid's critique of Hume's skepticism.
Plato
https://iep.utm.edu/plato/ (Links to an external site.)
Plato: The Republic: Allegory of the Cave (see Book VII)
https://iep.utm.edu/republic/
.
one page in APA format.Using the Competing Values Framework, how w.docxjuliennehar
one page in APA format.
Using the Competing Values Framework, how would you categorize the culture in your organization or an organization for which you have previously worked and was it effective? Why or why not?
What do you think is your primary ethical perspective when making decisions?
How do you think organizational culture impacts ethics and how do the ethics exhibited by an organization impact the organizational culture?
.
One more source needs to be added to the ppt. There is a 5-6 min spe.docxjuliennehar
One more source needs to be added to the ppt. There is a 5-6 min speech based on the ppt. Update the statistics and give me the article title, the name of the source where you found the statistic. All the sources have to be current, published in the last 2 years. have to put the sources on everything he mentions. All samples and the formats are attached. Mosso is his speech, needts to be reformatted..
.
One of the recent developments facing the public administration of c.docxjuliennehar
One of the recent developments facing the public administration of corrections is that there has been an increasing call by public officials and the citizenry to privatize the prison systems in the United States. Discuss the following in regard to this:
First, from the perspective of a public-sector correctional administrator, make 2 arguments for keeping the jails in public hands.
Second, from the perspective of a private-sector correctional facility manager make 2 arguments for turning the correctional system over to the private correctional industry.
Briefly discuss the types of challenges that each sector—both public and private—may face.
Are there any legal issues, either criminal or civil, that need to be addressed before privatization can occur?
Support your viewpoints from your readings and other appropriate outside sources, in APA format.
5 pages. APA formet. 5 sources cited throughout the paper. Reference page and Abstract. Please no Plagerism.
.
One of the most important functions (protocols) in a packet-switched.docxjuliennehar
One of the most important functions (protocols) in a packet-switched network is
ROUTING.
An array of routing algorithms have been invented, and many of them implemented.
With respect to routing, the Internet is composed of inter-connected regions called autonomous systems (AS). There are 2 layers of routing in the Internet: interior and exterior routing. An interior routing protocol (IRP) operates within an AS. An exterior routing protocol (ERP) operates between AS's. IRP's and ERP's have evolved. Routing protocols may have serious security vulnerabilities that could potentially be exploited by hackers. CISCO has monopolized the router market, but is facing increasing foreign competition.
Discuss routing in
the Internet and other
networks (algorithms, standards, implementations, quality-of-service, security risks, router trends, etc.) .
Answer must be atleast 300 words
.
One of the main themes of this course has been culture as an on-goin.docxjuliennehar
One of the main themes of this course has been culture as an on-going process of adoption and adaptation. Give at least two examples of adoption and adaptation in pre-modern Korea and discuss the significance of those examples for the often-expressed view that pre-modern Korean culture is simply an imitation of Chinese culture.
.
One of the main political separations that divide people today is Li.docxjuliennehar
One of the main political separations that divide people today is Liberal versus Conservative. These two sides have very distinct views on many educational issues. Based on your assigned group, listed below by last name, describe the liberal and conservative perspectives on your specific educational issue
Multiculturalism (Last name begins with A-L)
What roles have these views played in either creating or shaping current educational policy?
.
One of the very first cases that caught Freud’s attention when he wa.docxjuliennehar
One of the very first cases that caught Freud’s attention when he was starting to develop his psychoanalytic theory was that of Anna O, a patient of fellow psychiatrist Josef Breuer. Although Freud did not directly treat her, he did thoroughly analyze her case as he was fascinated by the fact that her hysteria was “cured” by Breuer. It is her case that he believes was the beginning of the psychoanalytic approach.
Through your analysis of this case, you will not only look deeper into Freud’s psychoanalytic theory but also see how Jung’s neo-psychoanalytic theory compares and contrasts with Freud’s theory.
Review the following:
The Case of Anna O.
One of the first cases that inspired Freud in the development of what would eventually become the Psychoanalytic Theory was the case of Anna O. Anna O. was actually a patient of one of Freud’s colleagues Josef Breuer. Using Breuer’s case notes, Freud was able to analyze the key facts of Anna O’s case.
Anna O. first developed her symptoms while she was taking care of her very ill father with whom she was extremely close. Some of her initial symptoms were loss of appetite to the extent of not eating, weakness, anemia, and development a severe nervous cough. Eventually she developed a severe optic headache and lost the ability to move her head, which then progressed into paralysis of both arms. Her symptoms were not solely physical as she would vacillate between a normal, mental state and a manic-type state in which she would become extremely agitated. There was even a notation of a time for which she hallucinated that the ribbons in her hair were snakes.
Toward the end of her father’s life she stopped speaking her native language of German and instead only spoke in English. A little over a year after she began taking care of her father he passed away. After his passing her symptoms grew to affect her vision, a loss of ability to focus her attention, more extreme hallucinations, and a number of suicidal attempts (Hurst, 1982).
Both Freud and Jung would acknowledge that unconscious processes are at work in this woman's problems. However, they would come to different conclusions about the origin of these problems and the method by which she should be treated.
Research Freud’s and Jung’s theories of personality using your textbook, the Internet, and the Argosy University online library resources. Based on your research, respond to the following:
Compare and contrast Freud's view of the unconscious with Jung's view and apply this case example in your explanations.
On what specific points would they agree and disagree regarding the purpose and manifestation of the unconscious in the case of Anna?
How might they each approach the treatment of Anna? What might be those specific interventions? How might Anna experience these interventions considering her history?
Write a 2–3-page paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M2_A.
One of the great benefits of the Apache web server is its wide range.docxjuliennehar
One of the great benefits of the Apache web server is its wide range of OS and platform support. Apache will run on any Unix-like OS (e.g. Linux, Unix, Mac, Solaris, and Berkeley Software Distribution (BSD) and most Windows OSs).
If you could pick any OS to run Apache on, which would you pick and why?
Once you select the OS, be sure to discuss the specifics in the steps you would take to install Apache on the operating system
.
Criteria for grading
* Quality of Initial Posting
* Writing mechanics ( Spelling, Grammar, APA) and Information Literacy
.
One of the most difficult components of effective .docxjuliennehar
One of the most difficult components of effective management and leadership is uncertainty. Uncertainty exists everywhere in an organization. Each of the four functions of
management (planning, organizing, leading, and controlling) is affected by uncertainties that lie within an organization and its operations. However, many uncertainties that affect an
organization are external to the organization itself. These cannot always be controlled, but they must be planned for when possible, and adapted to when planning is not possible.
This final week contains a culmination of the concepts introduced throughout the course and is designed to help you think about future challenges involved in management.
Review previous resources as needed to prepare for your Signature Assignment.
Activity Resources:
No Activity Resource available.
Activity Description:
In a paper, discuss the following points:
1. Present an overall description of what management entails and how it is properly implemented in today’s fast paced business environment.
2. Describe and give examples of how the challenges managers face in today’s world are characterized by uncertainty, ambiguity, and sudden changes or
threats from the environment.
3. Describe the skills that are important for managers to have to be successful under these existing conditions.
4. Illustrate the qualities that are important to managers today to function under these conditions.
5. Relate the issues above to a scenario and assessment of yourself as a manager in 5 years. Include a vision of the organization you will be in and the role
you would like to play. Also include a discussion of steps you need to take to strengthen your skills to be successful in your desired managerial role.
Support your paper with minimum of five scholarly resources. In addition to these specified resources, other appropriate scholarly resources, including older
.
One of the high points of the campaign will be a look to the future .docxjuliennehar
One of the high points of the campaign will be a look to the future of Healing Hands Hospital. Mr. Wood asks you to help the public relations committee come up with some ideas that can be used in the campaign of community education.
Create a PowerPoint presentation
(4–6 slides)
outlining some options that the future may hold for Healing Hands Hospital. Include the following information in your presentation:
Future health care trends
Technologies
Innovations
.
One of the most basic aims of human computer interaction has been sp.docxjuliennehar
One of the most basic aims of human computer interaction has been speech-recognition. The ability to talk to machines in common language, rather than through mechanical devices or artificial languages, has been a major desirable in business, education, government, and about every other field of endeavor. In the last few years, there have been enormous strides made by researchers and software engineers alike, and there are now effective products on the market that do a solid basic job. In fact, this particular text that you are now reading was entered into this course by your instructor using a voice-recognition program called Dragon Naturally Speaking. This entire paragraph was entered with only two errors that required correction.
As speech-recognition technology becomes more mature, it has been increasingly applied in many areas.
Assignment Expectations (50 points total)
After reading the course materials, prepare a paper discussing the following topics.
Discuss why HCI is important and has evolved to ensure that the needs of different kinds of users are taken into account in computer systems. Discuss the application of speech recognition as a tool for Human Computer Interaction
In this paper, please consider both current major issues in the field, and major future developments that hold promise.
Length:
Minimum 3–5 pages excluding cover page and references (since a page is about 300 words, this is approximately 900 –1,500 words).
.
One of the most common workplace communication tools is a telephon.docxjuliennehar
One of the most common workplace communication tools is a telephone. What key principles should you keep in mind when conveying a message via phone versus communicating by email? Include a clear description of phone and email etiquette in your response.
Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Anderson, L., & Bolt, S. (2011).
Professionalism: Skills for workplace success
(2nd ed., Pg. 82-84). Upper Saddle River, NJ: Prentice Hall.
.
Andreas Schleicher presents PISA 2022 Volume III - Creative Thinking - 18 Jun...EduSkills OECD
Andreas Schleicher, Director of Education and Skills at the OECD presents at the launch of PISA 2022 Volume III - Creative Minds, Creative Schools on 18 June 2024.
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
🔥🔥🔥🔥🔥🔥🔥🔥🔥
إضغ بين إيديكم من أقوى الملازم التي صممتها
ملزمة تشريح الجهاز الهيكلي (نظري 3)
💀💀💀💀💀💀💀💀💀💀
تتميز هذهِ الملزمة بعِدة مُميزات :
1- مُترجمة ترجمة تُناسب جميع المستويات
2- تحتوي على 78 رسم توضيحي لكل كلمة موجودة بالملزمة (لكل كلمة !!!!)
#فهم_ماكو_درخ
3- دقة الكتابة والصور عالية جداً جداً جداً
4- هُنالك بعض المعلومات تم توضيحها بشكل تفصيلي جداً (تُعتبر لدى الطالب أو الطالبة بإنها معلومات مُبهمة ومع ذلك تم توضيح هذهِ المعلومات المُبهمة بشكل تفصيلي جداً
5- الملزمة تشرح نفسها ب نفسها بس تكلك تعال اقراني
6- تحتوي الملزمة في اول سلايد على خارطة تتضمن جميع تفرُعات معلومات الجهاز الهيكلي المذكورة في هذهِ الملزمة
واخيراً هذهِ الملزمة حلالٌ عليكم وإتمنى منكم إن تدعولي بالخير والصحة والعافية فقط
كل التوفيق زملائي وزميلاتي ، زميلكم محمد الذهبي 💊💊
🔥🔥🔥🔥🔥🔥🔥🔥🔥
How to Manage Reception Report in Odoo 17Celine George
A business may deal with both sales and purchases occasionally. They buy things from vendors and then sell them to their customers. Such dealings can be confusing at times. Because multiple clients may inquire about the same product at the same time, after purchasing those products, customers must be assigned to them. Odoo has a tool called Reception Report that can be used to complete this assignment. By enabling this, a reception report comes automatically after confirming a receipt, from which we can assign products to orders.
THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...indexPub
The recent surge in pro-Palestine student activism has prompted significant responses from universities, ranging from negotiations and divestment commitments to increased transparency about investments in companies supporting the war on Gaza. This activism has led to the cessation of student encampments but also highlighted the substantial sacrifices made by students, including academic disruptions and personal risks. The primary drivers of these protests are poor university administration, lack of transparency, and inadequate communication between officials and students. This study examines the profound emotional, psychological, and professional impacts on students engaged in pro-Palestine protests, focusing on Generation Z's (Gen-Z) activism dynamics. This paper explores the significant sacrifices made by these students and even the professors supporting the pro-Palestine movement, with a focus on recent global movements. Through an in-depth analysis of printed and electronic media, the study examines the impacts of these sacrifices on the academic and personal lives of those involved. The paper highlights examples from various universities, demonstrating student activism's long-term and short-term effects, including disciplinary actions, social backlash, and career implications. The researchers also explore the broader implications of student sacrifices. The findings reveal that these sacrifices are driven by a profound commitment to justice and human rights, and are influenced by the increasing availability of information, peer interactions, and personal convictions. The study also discusses the broader implications of this activism, comparing it to historical precedents and assessing its potential to influence policy and public opinion. The emotional and psychological toll on student activists is significant, but their sense of purpose and community support mitigates some of these challenges. However, the researchers call for acknowledging the broader Impact of these sacrifices on the future global movement of FreePalestine.
THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...
TitleAuthorsSourceDocument TypeSubject Terms.docx
1. Title:
Authors:
Source:
Document Type:
Subject Terms:
Author-Supplied Keywords:
Abstract:
Re cord: 1
HOW INFORMATION TECHNOLOGY STRATEGY AND
INVESTMENTS INFLUENCE FIRM PERFORMANCE:
CONJECTURE AND EMPIRICAL EVIDENCE1.
Mithas, Sunil [email protected]
Rust, Roland T. [email protected]
MIS Quarterly. Mar2016, Vol. 40 Issue 1, p223-246. 24p. 7
Charts, 4 Graphs.
Article
*INFORMATION technology
*FINANCE
*MARKET value
*BUSINESS revenue
*TOBIN'S Q ratio
*COST control
2. cost reduction
dual emphasis
firm performance
Information technology strategic emphasis
IT ambidexterity
IT investments
IT strategic ambidexterity
profitability
revenue growth
In this paper, we develop conjectures for understanding how
information technology (IT) strategy and IT
investments jointly influence profitability and the market value
of the firm. We view IT strategy as an
expression of the dominant strategic objective that the firm
chooses to emphasize, which can be revenue
expansion, cost reduction, or a dual emphasis in which both
goals are pursued. Using data from more than
300 firms in the United States, we find that at the mean value of
IT investments, firms with a dual IT strategic
emphasis have a higher market value as measured by Tobin's Q
than firms with a revenue or a cost
emphasis, but they have similar levels of profitability. Of
greater importance, IT strategic emphasis plays a
significant role in moderating the relationship between IT
investments and firm performance. Dual-emphasis
firms have a stronger IT–Tobin's Q relationship than revenue-
emphasis firms. Dual-emphasis firms also have
a stronger IT– profitability relationship than either revenue- or
cost-emphasis firms. Overall, these findings
imply that, at low levels of IT investment, the firm may need to
choose between revenue expansion and cost
1
2
3. Author Affiliations:
Full Text Word Count:
ISSN:
Accession Number:
Database:
Section:
reduction, but at higher levels of IT investment, dual-emphasis
in IT strategy or IT strategic ambidexterity
increasingly pays off. [ABSTRACT FROM AUTHOR]
Copyright of MIS Quarterly is the property of MIS Quarterly
and its content may not be copied or emailed to
multiple sites or posted to a listserv without the copyright
holder's express written permission. However, users
may print, download, or email articles for individual use. This
abstract may be abridged. No warranty is given
about the accuracy of the copy. Users should refer to the
original published version of the material for the full
abstract. (Copyright applies to all Abstracts.)
Professor, Robert H. Smith School of Business, University of
Maryland
Visiting Chair, Marketing Research, Erasmus University
15379
0276-7783
112750564
4. Academic Search Complete
RESEARCH NOTES
HOW INFORMATION TECHNOLOGY STRATEGY AND
INVESTMENTS INFLUENCE FIRM PERFORMANCE:
CONJECTURE
AND EMPIRICAL EVIDENCE1
In this paper, we develop conjectures for understanding how
information technology (IT) strategy and IT investments jointly
influence profitability and
the market value of the firm. We view IT strategy as an
expression of the dominant strategic objective that the firm
chooses to emphasize, which can
be revenue expansion, cost reduction, or a dual emphasis in
which both goals are pursued. Using data from more than 300
firms in the United
States, we find that at the mean value of IT investments, firms
with a dual IT strategic emphasis have a higher market value as
measured by Tobin’s
Q than firms with a revenue or a cost emphasis, but they have
similar levels of profitability. Of greater importance, IT
strategic emphasis plays a
significant role in moderating the relationship between IT
investments and firm performance. Dual-emphasis firms have a
stronger IT–Tobin’s Q
relationship than revenue-emphasis firms. Dual-emphasis firms
also have a stronger IT– profitability relationship than either
revenue- or cost-
emphasis firms. Overall, these findings imply that, at low levels
of IT investment, the firm may need to choose between revenue
expansion and cost
reduction, but at higher levels of IT investment, dual-emphasis
in IT strategy or IT strategic ambidexterity increasingly pays
5. off.
Keywords: IT ambidexterity; IT strategic ambidexterity; firm
performance; profitability; IT investments; revenue growth; cost
reduction; dual emphasis;
Information technology strategic emphasis
Introduction
Firms spend significant sums of money on information
technology (IT) resources, yet they are often challenged in
developing appropriate strategies
to direct these resources to realize business value (for a
discussion, see Kohli and Devaraj 2004). Previous research has
studied either the impact
1
2
of IT investments on firm performance (e.g., Barua and
Mukhopadhyay 2000; Dedrick et al. 2003; Hoadley and Kohli
2014; Kohli and Devaraj 2003;
Kohli et al. 2012) or the effect of IT strategic emphasis on firm
performance (e.g., Leidner et al. 2011; Oh and Pinsonneault
2007; Tallon 2007; Tallon
et al. 2000). However, few studies focus on the effect of IT
investments and IT strategic emphasis simultaneously. Given
that profit is equal to
revenue minus cost, it is clear that there are three strategic
paths from IT to firm performance: IT can be used to ( 1) reduce
costs by improving
productivity and efficiency; ( 2) increase revenues by fully
exploiting opportunities through existing customers, channels,
6. and products/ services and
by finding or creating new customers, channels, and
products/services; or ( 3) reduce costs and increase revenues
simultaneously. What is not
clear is the relative degree to which these strategies and IT
investments jointly influence firm performance. In other words,
despite significant
progress in the literature with regard to understanding the
business value of IT, little is known about how IT strategy
moderates the relationship
between IT investments and firm performance.
This study seeks to answer the following research question:
How do IT strategic emphasis and investments in IT resources
affect firm performance?
To answer this question, we propose conjectures that link IT
strategy and IT investments with firm performance. Although
firm performance is a
multidimensional concept (Richard et al. 2009), following
recent work (Kohli et al. Ow 2012), we use two complementary
measures of firm
performance in this study (profitability and market value) which
relate to both fundamentals and stock market assessment (for a
discussion, see
Blanchard et al. 1993; Henwood 1997). We empirically test the
conjectures using archival data from more than 300 U.S. firms.
Our work is related to but distinct from prior research linking
IT investments with profitability and Tobin’s Q (Bharadwaj et
al. 1999; Kohli et al. 2012;
Mithas et al. 2012; Tafti et al. 2013) because we also consider
the effect of IT strategy, perhaps for the first time using a data
set that has information
on both IT investments and IT strategy. Our contribution is to
show that the firm’s IT strategic emphasis moderates the
relationship between IT
7. investments and firm performance; firms with a dual emphasis
have higher profitability and market value at higher levels of IT
investments. In other
words, successful dual IT emphasis appears to require higher
levels of IT investments. A key insight from our results is that
IT investments and IT
strategy should not be viewed separately from each other and
that firms need to synchronize their IT investment levels and
their IT strategies for
improved performance. The study has implications for firms as
they consider adopting dual strategies in increasingly turbulent
markets. Thus, this
study not only answers an interesting and managerially relevant
empirical research question but also provides directions for
motivating a program of
research to clarify and elaborate the findings through further
theoretical or empirical work.
Background and Theory
Background
Our review of prior literature suggests that despite much
progress in the business value of IT literature, two opportunities
for contributions remain.
First, although prior studies have discussed the relationship
between IT strategy and performance, and IT investments and
performance, few studies
focus on how IT strategic emphasis and investment level jointly
affect performance. We define IT strategic emphasis as the
dominant strategic
objective that the firm chooses to emphasize in its IT strategy,
which can be revenue expansion, cost reduction, or a dual-
emphasis in which both
goals are pursued. Other studies have used other terms such as
IT strategic orientation and IT strategic focus to refer to similar
8. ideas. Among prior
information systems (IS) research on the direct effects of
strategic emphasis on firm performance, Tallon et al. (2000)
find that executives in firms
with more focused IT goals (e.g., operations focus, market
focus, dual focus) perceive greater payoffs from IT across the
value chain. Subsequently,
Tallon (2007) uses Treacy and Wiersema’s (1993) typology
(operational excellence, customer intimacy, and product
leadership) and finds that IT
business value is the highest in firms with a multifocused
business strategy and lowest in those with a single focus. Oh
and Pinsoneault (2007)
study the strategic value of IT in terms of the deployment of IT
applications (cost reduction, quality improvement, and revenue
growth) and find that
contingency approaches better explain the impact of cost-related
applications while a resource-centered perspective better
predicts the impact of IT
on revenue and perceived profitability; however, they do not
study the effect of dual or mixed emphases. Leidner et al.’s
(2011) exploratory results
suggest that IS ambidextrous firms (firms pursuing an IS
innovator and an IS conservative strategy at the same time) had
higher perceived
organizational performance. None of these studies investigates
how IT strategic focus moderates the relationship between IT
investments and firm
performance, which is the focus of the current study.
Second, although prior research in marketing provides useful
insights for the effect of strategic emphases in terms of quality
strategy or customer
9. focus on firm performance, the extent to which their findings
apply to IT strategy is an open empirical question. For example,
Rust et al. (2002) show
that firms with a revenue growth emphasis in their quality
strategy outperform firms with a cost reduction emphasis, and
firms with a primary
emphasis on either revenue growth or cost reduction outperform
firms that attempt a dual emphasis. Further research (Rust et al.
2016) shows that
a revenue emphasis and cost emphasis are cultivated in different
ways, with a revenue emphasis propagating “bottom up” and a
cost emphasis
propagating “top down.” These results illustrate the
complexities of quality management, and are generally
consistent with the notion of trade-offs
among different strategic emphases in the strategy literature
(Porter 1980). Mittal et al. (2005) study the moderating effect
of dual emphasis on the
association between customer satisfaction and long-term
performance and report that association between customer
satisfaction and Tobin’s Q is
positive and relatively stronger for firms that successfully
achieve a dual emphasis.
With this backdrop, our work seeks to advance our
understanding of how IT strategic emphasis and investments in
IT resources affect firm
performance. We conceptualize IT strategy in terms of revenue
focus and cost focus. Our approach is consistent with recent
studies that have
articulated strategic focus in terms of objective metrics, such as
revenues or costs in a firm’s income statement, to more directly
assess the impact
of such cost- or revenue-focused strategies on firm performance
(Kohli 2007; Oh and Pinsonneault 2007; Rust et al. 2002). Chief
information
10. officers (CIOs) also find this revenue and cost typology more
useful, as reflected in comments by AstraZeneca’s CIO (Hickins
2012):
The key to winning approval from executive management and
boards…is to talk about IT projects in terms of the business
opportunities they afford.
“Are you going to generate additional revenue or are you going
to reduce the cost structure” of the organization.
Recent IS research has acknowledged this need to use business-
oriented metrics as IT increasingly takes on a more strategic
role in corporations,
and research suggests that use of business terms “helps IT
personnel focus even more clearly on business value” (Mitra et
al. 2011, p. 57). Besides,
such objective metrics lend themselves for better target-setting
and monitoring of progress to enable timely corrective actions
that are directly tied to
firm performance.
Although IT, being a general-purpose technology, can be
viewed as being capable of both increasing revenues and
reducing costs, does this mean
that firms no longer have to choose a strategic emphasis?
Choosing a particular strategy implies making some trade-offs
(Hindo 2007; Skinner
1986)—that is, choosing some goals and functionalities while
forsaking others in the hope that the overall combination of
choices will ensure a better
fit for organizational activities in the value chain and will make
that fit less replicable for competitors (Porter 1996).
Accordingly, firms often choose
11. between revenue expansion or cost reduction in their strategic
IT emphasis. For example, the CIO of FedEx, Robert Carter,
contrasts FedEx’s
approach to IT with that of UPS in the following way:
We tend to focus slightly less on operational technology. We
focus a little more on revenue-generating, customer-
satisfaction-generating, strategic-
advantage technology. The key focus of my job is driving
technology that increases the top line (Colvin 2006).
In other words, in Carter’s view, FedEx has a revenue emphasis
while UPS has a cost emphasis. Kohli’s (2007) work with UPS
suggests that the
company may be using IT for revenue growth as well. However,
at the 2014 Frontiers in Service Conference, Romaine Seguin,
President of UPS
Americas Region, indicated in a question-and-answer session
following her keynote presentation that the FedEx (revenue
emphasis) versus UPS
(cost emphasis) distinction was essentially correct, lending
credence to Carter’s view. There are other firms, such as
Johnson & Johnson (Mithas
and Agarwal 2010) and Coca-Cola (see Levin 2013), in which
CIOs have tried to emphasize revenue growth in their IT
strategy. As we have noted,
FedEx and UPS do not have to restrict themselves to either
revenue growth or cost reduction; alternatively, they can adopt
a dual emphasis.
Consider some examples. While customer relationship
management (CRM) systems can enable some cost savings if
they help reduce the costs of
maintaining customer relationships, the primary reason for
deploying these systems is often to increase revenues by either
attracting new
12. customers or enabling cross-selling, upselling, or repeat sales
from existing customers (Mithas et al. 2005, 2016; Saldanha et
al. 2016). If firms use
CRM systems to help with revenue growth and cost reduction in
equal measure, then such an approach could be characterized as
a dual-focus
investment. Likewise, in an academic setting, systems used to
maintain alumni development and relationships may be
characterized primarily as
revenue enhancing, while systems related to the automation of
class scheduling or course bidding systems (as opposed to
manual processes) can
be viewed as cost reducing (Kohli and Melville 2009).
Among cost-focused applications, firms often use reverse
auctions and many other supply chain management applications
primarily to reduce their
procurement costs (Mithas and Jones 2007). As another example
of a cost-focused project, UPS linked bar-code data on its
packages (called
Package Level Detail) but retained the capability to provide
seamless tracking information to its customers while
outsourcing some rural deliveries to
the U.S. Postal Service (USPS) to lower its overall costs (Kohli
2007). A similar opportunity for cost reduction was provided by
UPS’s Geographical
Information Systems, which enabled the firm to get its
customers to do some data entry themselves, further reducing
UPS’s costs. UPS also used
its integrated supply chain assets to do customers’ work for
them, which helped realize revenue opportunities; in this case,
we could characterize
the investment as being revenue-focused (Kohli 2007). It is also
likely that some systems can initially be deployed for their cost-
saving potential or to
streamline internal processes, but later they may provide
13. revenue benefits. For example, UPS’s Delivery Intercept
Service, which has the capability
to locate and intercept any package within 15 minutes, was
initially deployed to improve UPS’s internal processes through
the use of XML, but it also
enabled revenue growth over time through additional fee-based
services (Kohli 2007).
We argue that it is not so much which applications firms use but
rather what their strategic objectives are for deploying those
applications, in that
managerial beliefs and strategic posture shape an organization’s
IT governance and management of IT projects to create business
value. This logic
applies to IT assets, which are mostly general in nature and,
with some customization and appropriate changes in business
processes, training, and
incentive structures, can be targeted to achieve strategic
objectives defined by managers. These changes in business
processes and reengineering
efforts are often shaped by the firm’s overarching IT strategic
objectives (Barua et al. 1996; Cederlund et al. 2007; Kohli and
Grover 2008; Kohli and
Hoadley 2006; Kohli and Johnson 2011). In other words, while
any individual IT system presents potential opportunities to
reduce costs or to enhance
revenue, or both, we argue that it is perhaps more useful to
think of the portfolio of IT applications that firms want to
create to operationalize their
strategic emphasis by instantiating necessary configurations of
individual IT applications.
Why IT Strategic Emphasis Moderates the Relationship Between
14. IT Investments and Firm Performance
To understand how IT strategic emphasis and IT investments
jointly influence profitability and market value, we first
articulate why we expect a firm’s
IT strategic emphasis to affect firm performance at typical
levels of IT investments. A firm’s strategic emphasis affects the
firm’s choices with
respect to the types of technologies and applications it acquires
and the types of governance processes and firm performance
metrics it uses. The
comment of the CIO of FedEx, referred to previously, provides
support for this idea (see Colvin 2006). We recognize that,
ultimately, any strategy
needs to be instantiated through appropriate combinations of IT
systems to result in firm performance. In other words, strategy
execution can be
viewed as the actualization of a specific configuration of
systems.
We argue that a dual emphasis in IT strategy may lead to better
firm performance than a single emphasis in IT strategy, despite
some risks in
executing a dual-emphasis strategy. We draw on prior theories
in the IS literature such as the resource-based view, the
accounting literature
(Dehning et al. 2006), and the emerging literature on
ambidexterity which empha-sizes the power of stretch targets
(Bartlett and Ghoshal 1995;
Birkinshaw and Gibson 2004; Gibson and Birkinshaw 2004; Im
and Rai 2008; Markides 2013; Raisch and Birkinshaw 2008) to
frame our arguments
(see Table 1). We use a broader conceptualization of
ambidexterity here, similar to such usage by Markides (2013)
and Kude et al. (2015), as a way
to frame the simultaneous pursuit of two seemingly opposing
15. ideas.
First, following RBV (Barua et al. 1996; Barua and Mukho-
padhyay 2000; Piccoli and Ives 2005), a dual-emphasis IT
strategy (compared with either a
revenue- or a cost-emphasis IT strategy) is likely to lead to
potentially superior firm performance due to ( 1) greater social
complexity, ( 2) greater
causal ambiguity, ( 2) greater path dependence, and ( 4) organi-
zational learning. Let us consider these four mechanisms (social
complexity, causal
ambiguity, path dependence, and organizational learning) based
on RBV in turn.
Social Complexity: The social complexity of a dual-emphasis
strategy comes from its relatively ambitious scope of trying to
achieve two goals at
the same time. Because of the complexity and breadth of
applications that a dual-emphasis strategy requires, it is much
more difficult for
competitors to replicate the successful execution of such a
strategy than it is to replicate a revenue- or a cost-emphasis
strategy. Prior research
in the quality management literature provides support for this
idea. As Flynn et al. (1995, p. 666) note, “simultaneous pursuit”
of several
competitive advantages can lead to a stronger performance
because competing on “several fronts simultaneously���
makes it more difficult
for competitors to replicate such configurations. In addition to
the breadth and variety of IT applications needed in a dual-
emphasis IT strategy, it
also requires much more reconfiguration or restructuring of
business processes, thus contributing to the greater social
complexity inherent in
such an emphasis.
16. Causal Ambiguity: It may be more difficult to disentangle and
attribute the advantages resulting from a dual-emphasis IT
strategy from publicly
available information because firms following a dual-emphasis
strategy defy conventional logic and their initiatives and
resulting competitive
advantages are harder to classify or are more ambiguous to
decipher for competitors.
Path Dependence: A dual strategic emphasis may have an
inherent path dependence that is relatively more difficult to
replicate compared with
that in either a revenue or a cost emphasis. For example, for a
firm employing a dual strategic emphasis, cost-reduction efforts
may provide
opportunities to target new market segments, such as the bottom
of the pyramid, which in turn could enable the firm to realize
higher revenue
growth than if it were to focus only on cost reduction without a
link to its revenue growth strategy or only on revenue growth by
focusing on
premium market segments. Tighter coupling between strategic
options, such as revenue growth and cost reduction, is much
less replicable by
competitors than only one such option. Likewise, firms with a
dual strategic emphasis can use outsourcing and offshoring for
both cost reduction
(through arbitrage) and revenue expansion (through sales in
foreign markets by adapting offerings in those markets)
(Ghemawat 2007).
Organizational Learning: Dual emphasis firms may have higher
levels of organizational learning because learning spans many
17. more interrelated
business processes, routines, and IT systems that are more tacit,
complex, and novel than that for a single-emphasis strategy
(Cederlund et al.
2007). Together, the greater social complexity, causal
ambiguity, path dependence, and organizational learning of a
dual-emphasis IT strategy can
provide effective ex post limits to competition and can protect a
firm against resource imitation, transfer, and substitution
(Barney 1991; Wade and
Hulland 2004), thereby making firms with a dual strategic
emphasis more profitable and more valuable.
Table 1. Risks and Rewards of a Dual IT Strategic Emphasis
Ke y
M e chanis m s
Re w ards of a Dual IT Strate gic Em phas is Ris k s of a Dual
IT Strate gic
Em phas is
Re le vant lite rature
1. Resource-
based view
(RBV)
• Social
Complexity
Much higher social complexity of IT because of its role in
enhancing the breadth and depth
of relationships. For example, f irms w ill need to w ork on
both the f ront end w ith customers
to create one-to-one customer relationships through CRM and
on the back end w ith
18. suppliers to create highly responsive yet low cost delivery
mechanisms.
The scope of activities spanning business processes that touch
customers and suppliers
Firms may not be able to realize
complex interrelationships among IT
systems.
Cross-f unctional IT projects are more
prone to coordination problems.
Resource-based view
(RBV) (Barney 1991)
RBV (Cederlund et al.
2007; Grover et al.
2009; Piccoli and Ives
Ke y
M e chanis m s
Re w ards of a Dual IT Strate gic Em phas is Ris k s of a Dual
IT Strate gic
Em phas is
Re le vant lite rature• Barriers to
the Erosion of
Competitive
Advantage
• Path
Dependence
and/or Asset
Stock
Accumulation
•
19. Organizational
Learning
create higher barriers to erosion along several dimensions
simultaneously due to the cross-
f unctional nature of IT initiatives
Much greater path dependence and/or asset stock accumulation
because IT capabilities that
evolve gradually through integration w ith many business
processes are likely to be more
tacit and sustainable over a longer time.
Higher levels of organizational learning because learning spans
many more interrelated
business processes, routines, and IT systems that are more tacit,
complex, and novel than
that f or a single-emphasis strategy.
Firms may get locked into poor and
incompatible systems due to inertia.
The organization may suf f er f rom
inf ormation overload, leading to
reduced learning.
2005)
RBV (Eisenhardt and
Martin 2000; Teece et
al. 1997)
RBV (Bharadw aj
2000; Cederlund et al.
2007; Dierickx and
Cool 1989)
2. Reduced
Diminishing
Returns in
Opportunity
20. Space
Plentif ul “low -hanging f ruit” to increase revenues and reduce
costs. Firms may lose the ability to spot
f undamental transf ormations or avoid
reaching f or “higherhanging f ruit” that
may be rew arding in the long run.
Accounting literature
(Dehning et al. 2006)
3. Stretch
Targets
Stretch targets can motivate managers tow ard high perf
ormance. Too much stretch can be debilitating. Ambidexterity
literature (e.g., Bartlett
and Ghoshal 1995;
Gibson and
Birkinshaw 2004)
Second, a dual emphasis opens up many more “low-hanging”
positive-return investment opportunities than either single
emphasis would, thereby
creating more options for profitable growth (see Dehning et al.
2006). Firms with a dual emphasis are likely to have lower
cycle times in product
development, supply chain management, and customer
relationship management processes for realizing their revenue
and cost targets and thereby
have accelerated cash flows. Finally, dual-emphasis firms may
have less variability in cash flows because their IT-enabled cash
flows have two
sources (both revenue growth and cost reduction), while firms
with a primary emphasis on either revenue growth or cost
reduction have only one
21. source of IT-enabled cash flow (Porter 1985).
Third, a dual strategic emphasis, being more ambitious in its
scope, might provide stretch targets to employees and
implementation partners for
higher revenues and lower costs, thereby improving the chances
of getting more from the same levels of investments (Gibson
and Birkinshaw 2004;
Kaplan and Norton 2006). In turn, that will lead to higher levels
of cash flows, profits, and market value.
There are, however, potential risks inherent to a dual strategic
emphasis, and despite the potential of IT to enable firms to
achieve both revenue
growth and cost reduction goals, there are reasons firms may be
better off focusing on only one of these overarching goals.
Compared with revenue
expansion or cost reduction strategic emphases, it may be more
difficult for firms to follow a dual strategic emphasis because
the latter entails
greater complexity and risk in ensuring fit between all of the
IT-related decisions the firm must make. First, focusing on two
goals simultaneously can
be confusing in terms of target setting and performance metrics
that managers across business units pursue. Second, dual-
emphasis firms may
end up having a portfolio of IT systems that do not allow
seamless integration of data and information flow. One example
of this comes from the
financial services industry: Some observers argue that one
reason for the credit crisis may be that while firms were
pursuing revenue growth from a
business perspective as reflected in their quest for additional
22. revenues, even with some disregard for prudent risk
management, they were
emphasizing cost reduction in the IT function (Sviokla and
McGilloway 2008). Finally, focusing on two goals
simultaneously can make it difficult for
managers to agree on prioritizing IT projects (Ross and Beath
2002).
Ultimately, whether the advantages of a dual strategic emphasis
outweigh the disadvantages and risks is largely an empirical
question; we do not
make a specific prediction at typical levels of IT investments
because we argue that a more complete understanding of the
effect of IT strategic
emphasis requires taking into consideration how a dual strategic
emphasis moderates the relationship between IT investments
and firm
performance.
We first consider profitability. Why will a firm’s strategic
emphasis affect the relationship between IT investments and
firm profitability? As we noted
previously, a firm’s strategic emphasis affects its choices with
respect to the types of technologies and applications it acquires,
its IT governance
mechanisms, and its metrics for firm performance. Firms with a
dual emphasis may have more diverse IT resources for revenue
growth as well as
cost reduction. Managing these diverse resources requires hiring
a larger number of IT employees and having greater managerial
expertise in
managing diverse projects, which in turn may require using a
more diverse network of external IT implementation partners.
Together, managing
diverse IT infrastructure elements and IT human resources in
dual-emphasis firms will require a higher degree of management
23. attention, bandwidth,
and focus than if the firm were to focus on only revenue growth
or cost reduction. However, despite these challenges and risks,
firms are likely to
benefit more from IT spending if they adopt a dual strategic
emphasis (than if they adopt only a revenue growth or a cost
reduction emphasis)
because of differences in expectations and targets that managers
set for their IT implementations.
Next, we consider the moderating effect of a firm’s strategic
emphasis on the relationship between IT investments and market
value (measured by
Tobin’s Q). The strategic emphasis of a firm can moderate the
influence of IT investments on market value because of the
types of technologies and
risks associated with each strategic emphasis. We argue that
firms with a dual emphasis are likely to have lower cycle times
in product
development, supply chain management, and customer
relationship management processes for realizing their revenue
and cost targets and thereby
have accelerated cash flows. Dual-emphasis firms may also
have higher levels of cash flows because of simultaneous targets
for higher revenues
and lower costs. Finally, dual-emphasis firms may have less
variability in cash flows because their IT-enabled cash flows
have two sources (both
revenue growth and cost reduction), while firms with a primary
emphasis on either revenue growth or cost reduction have only
one source of IT-
enabled cash flow (Porter 1985). Due to the diversification of
sources of cash flows, the overall variability of cash flows is
likely to be lower for dual-
emphasis firms.
24. On the basis of the foregoing discussion, we offer the following
formal conjectures: We expect that ( 1) IT investments will
have a stronger positive
association with profitability for firms with a dual strategic
emphasis than for firms with a single strategic emphasis, and (
2) IT investments will have
a stronger positive association with Tobin’s Q for firms with a
dual strategic emphasis than for firms with a single strategic
emphasis. As a corollary,
we also expect these effects to apply when we disaggregate
single strategic emphasis into revenue or cost emphasis.
Method
Data
We obtained our independent and dependent variables from
separate sources: an InformationWeek survey and Compustat.
We obtained data
collected by InformationWeek, a leading and widely circulated
IT publication in the United States, from their survey of top IT
managers (e.g., vice
presidents, CIOs, directors) of more than 300 Fortune 500 firms
in North America. InformationWeek has published reports of its
annual surveys
since 1986. Although in the initial years these reports provided
firm-level IT spending data, since 1997, due to confidentiality
reasons,
InformationWeek publishes only aggregate data at the industry
level. The data used in this study include information about
firms’ IT spending and IT
strategic emphases during the 2003–2004 period. Information
Week is considered a reliable source of information, and prior
academic studies have
25. also used data from InformationWeek surveys (e.g., Bharadwaj
et al. 1999; Mithas et al. 2005; Rai et al. 1997). We
complemented the
InformationWeek data with firm performance (Tobin’s Q,
profitability) and industry data from Compustat.
Table 2 provides the definitions, variable constructions, and
sources for all of the variables used in this research.
Table 3 provides descriptive statistics by IT strategic emphasis.
It shows that, on average, firms spend approximately 4.1
percent of their revenue on
IT investments and have a profitability (operating income
before depreciation as a percentage of sales revenue) of
approximately 17 percent and a
Tobin’s Q of 1.4 during the study period. In addition,
approximately 90 percent of the firms have either a dual
emphasis or a cost reduction emphasis
in their IT strategy (with almost equal distribution of firms
among these emphases) while the remaining firms have a
revenue-enhancing emphasis.
On average, firms with a revenue or dual emphasis have higher
values of Tobin’s Q, profitability, and IT expenses (as a
percentage of revenue) than
firms with a cost emphasis.
Table 4 shows correlations among variables. As expected, IT
investments show a positive correlation with profits and Tobin’s
Q. We also observe
that a dual emphasis has a positive correlation with Tobin’s Q
but a statistically insignificant correlation with profit.
Empirical Models and Econometric Considerations
We specify standard cross-sectional models of the following
form:
26. Yi= Xiβ + εi ( 1)
where Y represents endogenous variables such as Tobin’s Q or
profitability; X represents a vector of firm characteristics, such
as IT strategic
emphasis, IT investments, and control variables, β is a vector of
the parameters to be estimated; and ε is the error term
associated with each
observation i.
We follow relevant prior literature subject to availability of
data and use parsimonious models similar to Oh and Pinson-
neault (2007), Rust et al.
(2002), Tallon (2007), and Tallon et al. (2000) to retain
comparability of findings to the extent possible and for clear
interpretation of results. We
account for firm-level heterogeneity by including relevant
factors such as firm size, industry sector, industry
concentration, and time period in our
models, and we provide an extensive discussion of other
robustness checks to provide confidence in our findings. We
implicitly control for firm size
in our models because we use IT investments normalized by
sales revenues of firms as our measure of IT Investments. We
control for sector
differences (manufacturing versus services) to account for
sectoral differences in IT investments, IT strategies, and firm
performance. We also
include a dummy for the year 2004 to account for any
systematic difference across the two years studied (2003 and
2004) in InformationWeek
survey data or firm performance. Subsequently, we report
27. robustness checks when we include additional and/or alternative
control variables in our
models such as research-and-development (R&D) and
advertising intensity; non-IT sales; selling, general, and
administrative (SG&A) expenditures;
industry concentration; and one-digit North American Industry
Classification System (NAICS) industry dummies (instead of a
service-sector dummy
variable), which indirectly account for many industry-level
variables, such as industry capital intensity, industry
concentration, average Tobin’s Q, and
industry regulation.
Accordingly, we specify our empirical models for testing our
conjectures for a dual versus single strategic emphasis as
follows:
Table 2. Variable Definitions and Data Sources
Variable
Nam e
Variable Cons truction/ De finition Source
Tobin’s Q Ratio of the market value of the f irm divided by the
replacement cost of assets. We calculated the market value of
a f irm by adding the market
value of its common equity, the liquidated value of pref
erential stock, and total debt. We used total assets as a measure
of replacement cost
of assets.
Compustat
Prof it Operating income bef ore depreciation divided by sales
(expressed in percentage) Compustat
28. IT
Investment
The level of IT investment as a percentage of the f irm’s sales
revenue Inf ormationWeek
IT
Strategic
Emphasis
“Has your organization’s business-technology strategy in the
past 12 months been primarily f ocused on generating new
revenue, or on cost
cutting and streamlining operations?” (choose one)
Cost emphasis = 1 if the f irm chooses “cost
cutting/streamlining operations” and zero otherw ise.
Revenue emphasis = 1 if the f irm chooses “generating new
revenue” and zero otherw ise.
Dual emphasis = 1 if the f irm chooses “about the same
emphasis on both” and zero otherw ise.
Inf ormationWeek
Service Whether the f irm belongs to the manuf acturing or the
services sector (services = 1, manuf acturing = 0). Based on
NAICS
classif ication
Table 3. Descriptive Statistics by IT Strategic Emphasis
Tobin’s Q Profit IT Inve s tm e nt Se rvice
Revenue Emphasis Mean 1.65 20.45 6.97 0.79
SD 0.86 19.39 15.06 0.41
29. N 43 61 61 61
Cost Emphasis Mean 1.18 15.53 3.25 0.48
SD 0.79 11.75 5.31 0.5
Tobin’s Q Profit IT Inve s tm e nt Se rvice
S 0 9 5 5 3 0 5
N 188 210 210 210
Dual Emphasis Mean 1.53 17.97 4.09 0.65
SD 1.04 14.3 3.86 0.48
N 185 240 240 240
Total Mean 1.38 17.26 4.09 0.6
SD 0.94 14.12 6.82 0.49
N 416 511 511 511
Table 4. Pairwise Correlations Among Variables
1 2 3 4 5 6
* Signif icant at the 5% level.
1. Prof it 1.00
2. Tobin’s Q 0.42* 1.00
30. 3. Dual Emphasis 0.00 0.14* 1.00
4. IT Investments 0.19* 0.12* -0.01 1.00
5. Service 0.04* -0.08 0.08* 0.13* 1.00
6. Year Dummy f or 2004 0.03 0.01 0.13* 0.03 0.01 1.00
7. Industry Concentration -0.13* 0.02 0.14 0.02 0.37* -0.01
We disaggregate the single IT strategic emphasis further into
revenue or cost strategic emphasis to test our conjectures at a
more granular level:
We use ordinary least squares (OLS) to estimate Equations 2–5
because the focal explanatory variables (i.e., IT strategic
emphasis and IT
investments) are exogenous in an econometric sense
(Wooldridge 2003b).
We do not assume that IT strategic emphasis and IT investments
are independent of each other, and our models account for any
potential
correlation between these variables. These correlations are
relatively small in our sample. Table 4 shows that the
correlation between a dual-
emphasis strategy and profitability is zero and between a dual-
emphasis strategy and Tobin’s Q is 0.14. Such correlations do
not create endogeneity,
because regression models account for correlations among
explanatory variables (including the variables involved in
interaction terms).
Because of the presence of interaction terms in our models, we
mean-centered the value of IT investments for easier
interpretation of results. To
31. estimate Equations 4 and 5, instead of omitting one of the
dummy variables for a strategic emphasis (as is commonly done
in estimating regression
models with dummy variables), we retain all three dummy
variables and the interactions involving IT investments with
these dummy variables in
Equations 4 and 5, but we suppress the constant term. This
estimation strategy lends itself to a more direct interpretation of
results without affecting
parameter estimates or their statistical significance (for a
similar approach, see Anderson et al. 2006). Note that
suppression of constant results in
increased R-squared value for models in Table 5 but it does not
affect hypothesis tests for our key parameters of interest.
Table 5 shows the results of our estimation of Equations 2 and
3, and Table 6 shows the results of our estimation of Equations
4 and 5. We used
heteroskedasticity-consistent robust standard errors for
statistical tests (Froot 1989; Rogers 1993; Williams 2000;
Wooldridge 2003a). Use of the
robust standard errors, coupled with a large sample size to
justify the assumption of asymptotic normality of residuals, is
likely to yield conservative
tests of statistical significance. We tested for multicollinearity
by computing the variance inflation factors and condition
indices. The highest variation
inflation factor and condition index in our models were less
than 2.7 and 4.3, respectively, indicating that multicollinearity
is not a serious concern.
We performed several diagnostic and robustness checks to
ascertain the stability of our results. First, although we use
32. conservative
heteroskedasticity-consistent robust standard errors for
statistical testing, we nevertheless evaluated kernel density
plots of residuals, and while they
show positive skewness and kurtosis, they appear to be
approximately normally distributed.
Second, we evaluated the stability of our results by removing
approximately 1 percent of observations that have IT
investments in excess of three
standard deviations. While this leads to a loss in efficiency of
estimates as one would expect, the results remain qualitatively
similar to the ones
reported previously. Third, we included a squared term for IT
investments in our profitability models to avoid omitted
variable bias due to exclusion of
higher-order terms of independent variables. Because we
obtained broadly similar results, albeit with higher standard
errors due to the presence of a
quadratic term, we report our main results without higher-order
terms for easier interpretation of results.
Fourth, we also assessed the stability of our results by
estimating the models after log-transforming the dependent
variables. Because these
estimates yielded essentially similar results, we continue with
interpreting the results from original nontransformed dependent
variables for a simpler
and more managerially relevant interpretation. Finally, because
the error terms of the profitability and Tobin’s Q equations may
be correlated for the
same firm, we allowed for these potentially correlated errors to
obtain consistent and efficient estimates of parameters by using
the seemingly
unrelated regression (SUR) estimation technique (Zellner 1962).
Note that gains in efficiency do not accrue if equations in the
33. SUR model use same
regressors, as is the case here (as the estimated coefficients are
identical to OLS); thus, the SUR estimation technique is used
only as a
robustness check here. These SUR models use only those
observations for which both profitability and Tobin’s Q
measures are available. Although
this caused the loss of observations for which we had only the
profitability measure but not the Tobin’s Q measure, we
obtained broadly similar
results as reported previously. In summary, we used several
tests to assess the stability of our results, and broadly similar
results across our tests
provide confidence in the robustness of our results.
Table 5. How a Dual Versus Single Strategic Emphasis
Influences Profits and Tobin’s Q
(1) Profit (2) Tobin’s Q
Dual Emphasis �11 0.762 �21 0.308*
(0.263) (0.001)
Dual Emphasis * Mean-Centered IT Investmentst-1 �12
1.115*** �22 0.0432**
(1) Profit (2) Tobin’s Q
Robust p-values are in parentheses.
*** p < 0.01
** p < 0.05
34. * p < 0.1 (one tailed tests f or IT investments and IT strategy,
and tw o-tailed tests f or other variables).
(0.006) (0.047)
IT Investmentst-1 �13 0.295* �23 0.0139**
(0.083) (0.014)
Service �14 4 284*** �24 -0.214*
(0.003) (0.074)
Year Dummy f or 2004 �15 0.660 �25 -0.0270
(0.315) (0.642)
Constant �10 12 84*** �20 1.329***
(0.000) (0.000)
Observations 511 416
R-squared 0.126 0.056
Table 6. How Dual, Revenue, and Cost Strategic Emphasis
Influence Profits and Tobin’s Q
(1) Profit (2) Tobin’s Q
Robust p-values are in parentheses.
*** p < 0.01
** p < 0.05
35. * p < 0.1 (one tailed tests f or IT investments and IT strategy,
and tw o-tailed tests f or other variables).
Dual Emphasis �31 15.13*** �41 1.738***
(0.000) (0.000)
Revenue Emphasis �32 16.49*** �42 1.857***
(0.000) (0.000)
Cost Emphasis �33 13.85*** �43 1.369***
(0.000) (0.000)
Dual Emphasis * Mean-Centered IT Investments t-1 �34 1
417*** �44 0.0580**
(0 000) (0 011)
(1) Profit (2) Tobin’s Q
Robust p-values are in parentheses.
*** p < 0.01
** p < 0.05
* p < 0.1 (one tailed tests f or IT investments and IT strategy,
and tw o-tailed tests f or other variables).
(0.000) (0.011)
36. Revenue Emphasis * Mean-Centered IT Investments t-1 �35
0.211 �45 0.0010
(0.188) (0.363)
Cost Emphasis * Mean-Centered IT Investmentst-1 �36 0.426**
�46 0.0474***
(0.029) (0.003)
Service �37 3.938*** �47 -0.260**
(0.006) (0.028)
Year Dummy f or 2004 �38 0.470 �48 -0.0597
(0.501) (0.316)
Observations 511 416
R-squared 0.652 0.716
Results
Before presenting the results of the tests of our conjectures, we
first discuss how IT strategic emphasis affects firm performance
at the mean levels
of IT investments. We find that at the mean value of IT
investments, firms with a dual emphasis do not have higher
profitability than firms with a
revenue or cost emphasis (see Table 5; β11 = 0.762, n.s.).
However, we find that firms with a primary emphasis on
revenue or cost with respect to
their IT investments will have lower market value than firms
with a dual emphasis, at the mean value of IT investments
(Table 5; β21 = 0.308, p <
37. 0.01). The effects are not only statistically significant but also
appear to be economically significant because dual emphasis
firms have Tobin’s Q that
is 0.31 higher than single-emphasis firms (see Table 5), which
is a very large value considering that it implies about one-third
increase in market
value over the replacement cost of assets of firms in our sample
(this magnitude is about one-third of the standard deviation of
Tobin’s Q in our
sample). Taken together, the market appears to value dual-
emphasis firms higher than revenue- or cost-emphasis firms,
even though these firms
have similar profitability at the mean levels of IT investments.
We now describe the results of the tests of our conjectures. We
find support for the first conjecture, which predicted that dual-
emphasis firms will
have a stronger positive association between IT investments and
profitability than firms with either a revenue emphasis or a cost
emphasis alone.
Indeed, we find that IT investments have a positive and
statistically significant association with profitability for dual-
emphasis firms (refer to column 1
of Table 5; β12 = 1.115, p < 0.01); this result is higher than that
for revenue- or cost-emphasis firms.
We also find support for the second conjecture, which predicted
that dual-emphasis firms will have a stronger positive
association between IT
investments and Tobin’s Q than firms with either a revenue
emphasis or a cost emphasis alone. Indeed, we find that IT
investments have a positive
and statistically significant association with Tobin’s Q for dual-
38. emphasis firms (Table 5; β22 = 0.043, p < 0.05).
We find support for the corollaries based on the results of our
Wald tests (refer to Table 7). IT investments have a positive and
statistically significant
association with profitability for dual-emphasis firms (refer to
column 1 of Table 6; β34 = 1.417, p < 0.01), which is higher
than that for revenue-
emphasis firms (β35 = .211, n.s.) or cost-emphasis firms (β36 =
.426, p < 0.05). Likewise, Table 7 shows support for our
prediction that IT
investments have a greater impact on market value (as measured
by Tobin’s Q) for dual-emphasis firms than for cost-emphasis
firms. IT
investments have a positive and statistically significant
association with Tobin’s Q for dual-emphasis firms (refer to
column 2 of Table 6; β44 = 0.058,
p < 0.05), a nonsignificant association with Tobin’s Q for
revenue-emphasis firms (β45 = 0.001, n.s.), and a positive and
statistically significant
association with Tobin’s Q for cost-emphasis firms (β46 =
0.047, p < 0.01). Dual-emphasis firms have a steeper and more
statistically significant IT–
Tobin’s Q relationship than revenue-emphasis firms (see Table
6). However, we did not find support for the prediction that IT
investments have a
greater impact on market value (as measured by Tobin’s Q) for
dual-emphasis firms than for cost-emphasis firms (see Table 7).
We plotted the results in Tables 5 and 6 to show how the effect
of IT investments on firm performance varies by IT strategic
emphasis. Figure 1
shows that at the mean value of IT investments (shown by a
vertical line), dual-emphasis firms do not have higher
profitability than single-emphasis
firms (i.e., revenue or cost). This figure suggests that although
39. profitability is approximately the same at the mean value of IT
investments, the
differences can be much larger at higher levels of IT
investment. In particular, at higher levels of IT investment,
dual-emphasis firms can significantly
outperform single-emphasis firms (i.e., revenue or cost).
Conversely, at low levels of IT investments, single-emphasis
firms (i.e., revenue or cost)
may have higher profitability than dual-emphasis firms.
Figure 2 shows that at the mean value of IT investments (shown
by a vertical line), dual-emphasis firms have a significantly
higher market value than
single-emphasis firms (i.e., revenue or cost). As with
profitability, the market values dual-emphasis firms even higher
than single-emphasis firms
(i.e., revenue or cost) when firms spend significantly more than
the mean levels of IT investments. Notably, the market values
dual-emphasis firms
more than single-emphasis firms even at lower levels of IT
investments, despite the lower profitability of dual-emphasis
firms.
While Figures 1 and 2 show how profitability and market value
vary for dual- or single-emphasis firms, Figures 3 and 4
disaggregate the single
strategic emphasis into its constituent elements (i.e., revenue
and cost) to glean deeper insights. Specifically, Figure 3 shows
that at the mean value
of IT investments (shown by a vertical line), revenue-emphasis
firms and dual-emphasis firms have approximately the same
profitability as cost-
emphasis firms. Again, although profitability may be
approximately the same at the mean value of IT investments, the
differences can be much larger
40. at higher levels of IT investment. In particular, at higher levels
of IT investments, dual-emphasis firms can significantly
outperform revenue- and cost-
emphasis firms. Figure 4 shows that at the mean value of IT
investments (shown by a vertical line), revenue-emphasis firms
and dual-emphasis
firms have a higher market value than cost-emphasis firms.
From this figure, it appears that the market has a generally
favorable assessment of
dual- and revenue-emphasis firms over a significantly large
range of IT investments.
Table 7. Summary of Results
Conje cture s and Corollarie s Te s t Supporte d
Conje cture s and Corollarie s Te s t Supporte d
Conje cture s and Corollarie s Te s t Supporte d
n.s. = not statistically signif icant
*** p < 0.01
** p < 0.05
* p < 0.1 (all one-tailed tests).
Conjectures: Single Versus Dual Emphasis
Conjecture 1: IT investments have a stronger positive
association w ith prof itability f or dual-emphasis f irms than f
or single-emphasis f irms (revenue
grow th or cost reduction).
41. �12 = 0 Yes**
Conjecture 2: IT investments have a stronger positive
association w ith Tobin’s Q f or dual-emphasis f irms than f or
single-emphasis f irms (revenue
grow th or cost reduction).
�22 = 0 Yes**
Corollaries: Disaggregating Single Strategic Emphasis into
Revenue or Cost Emphasis
Corollary 1a: IT investments have a greater impact on prof
itability f or dual-emphasis f irms than f or cost-emphasis f
irms. �34-036 =
0
Yes**
Corollary 1b: IT investments have a greater impact on prof
itability f or dual-emphasis f irms than f or revenue-emphasis f
irms. �34-035 =
0
Yes***
Corollary 2a: IT investments have a greater impact on market
value (as measured by Tobin’s Q) f or dual-emphasis f irms than
f or cost-emphasis
f irms.
�44-046 =
0
n.s.
42. Corollary 2b: IT investments have a greater impact on market
value (as measured by Tobin’s Q) f or dual-emphasis f irms than
f or revenue-emphasis
f irms.
�44-045 =
0
Yes**
Among other results for which we did not pose specific
conjectures, firms in the service sector appear to have higher
profitability but a lower Tobin’s
Q compared with firms in the manufacturing sector (see Tables
5 and 6). As the coefficient of the year dummy indicates, we
fail to observe any
statistically significant differences in firm performance in 2004
compared with 2003.
We conducted additional analyses for robustness. First, we
included R&D and advertising investments (as percentage of
sales) as additional control
variables in the models. However, because many firms do not
report R&D and advertising investments, to avoid data loss, we
used the mean value
of R&D and advertising intensity for missing data. These
models provide broadly similar results. Second, because SG&A
expenditures may be
correlated with IT investments and because they may also affect
outcome variables, we included a variable we refer to as non-IT
SG&A (= SG&A –
IT) in our models. Because of missing data for the SG&A
variable in Compustat, the sample size in these models is less
than the sample size in the
models without this control variable, thus affecting the
statistical significance of the variables. Nonetheless, on the
43. whole, the results are broadly
similar to those we report in Table 6, with some minor
differences. In these models, the stock market values dual- and
revenue-emphasis firms more
than cost-emphasis firms at the mean value of IT investments,
even though the differences in profitability are not significant at
the mean value of IT
investments. Again, dual-emphasis firms have a steeper IT–
profitability relationship than cost-emphasis firms.
Third, we conducted our analyses using raw (i.e.,
untransformed) and standardized values of IT investments and
obtained qualitatively similar
results. Fourth, we controlled for industry concentration (using
the Herfindahl Index) in our models and obtained broadly
similar results. Finally,
instead of using a service-sector dummy variable, we also used
one-digit NAICS industry dummies in the models. Use of these
industry dummies
accounts for many variables that are calculated at the industry
level, such as industry capital intensity, industry concentration,
average Tobin’s Q, and
industry regulation, and these models also yielded broadly
similar results, thus providing confidence in the robustness of
results.
Discussion
M ain Findings
Our goal in this study was to conceptualize why a revenue, cost,
or dual strategic emphasis in IT strategy will affect firm
performance and moderate
44. the returns to IT investments. We test the resulting conjectures
using archival data from more than 300 large U.S. firms. We
found that firms with a
dual emphasis in their IT strategy have a higher Tobin’s Q than
firms with a revenue or a cost emphasis at the mean value of IT
investments; these
differences in market value arise despite no statistically
significant differences in profitability.
Why does the market reward dual strategies over single focus
strategies? We believe that the possible reasons may be because
markets may
perceive dual strategies to be less replicable because of ( 1)
RBV mechanisms such as greater social complexity, causal
ambiguity, path
dependence, and organizational learning, ( 2) reduced
diminishing returns and plentiful low-hanging fruits in
opportunity space, and ( 3) stretch
targets in two key areas related to revenues and costs, as we
argued in the “Background and Theory”section. Together these
mechanisms may
allow dual emphasis firms to have more sustainable, higher, and
accelerated cash flows because of simultaneous targets for
higher revenues and
lower costs, with less variability in cash flows because cash
flows have two sources (both revenue growth and cost
reduction), while firms with a
primary emphasis on either revenue growth or cost reduction
have only one source of IT-enabled cash flow.
Taken together, these findings foreground the importance of IT
strategic emphasis because such strategies influence market
valuations even if they
do not yield measurable profitability differences at the mean
value of IT investments. Of greater importance, IT strategic
emphasis plays a significant
45. role in moderating the relationship between IT investments and
firm performance. We find that dual-emphasis firms have a
stronger IT–profitability
relationship than single-emphasis (revenue or cost emphasis)
firms. Dual-emphasis firms also have a stronger IT–Tobin’s Q
relationship than
revenue-emphasis firms. In general, our findings and plots show
that a dual IT strategic emphasis yields better profitability and
market value
outcomes when such a strategic emphasis is combined with high
levels of IT investments. At the same time, a dual emphasis can
backfire if not
supported by adequate levels of IT investments because at lower
levels of IT investments, it is outperformed by other strategic
emphases. Our
results are consistent with the view that firms can realize
significant performance benefits when they combine higher
levels of IT investments with
the more sophisticated management and governance capabilities
that firms may need to realize the dual strategic emphasis of
both cost reduction
and revenue enhancement (Aral and Weill 2007; Weill and Ross
2009). These findings extend prior literature by showing, for the
first time, how IT
investments and IT strategic emphasis jointly influence firm
performance. They also provide important implications for
practice, while suggesting the
need for developing stronger theory (e.g., in the area of IT
strategic ambidexterity) and more precise empirical tests in
further work.
Before considering implications, however, we discuss some
limitations. First, our study uses a cross-sectional analysis and,
46. although we performed
an extensive set of analyses, we do not claim causality and treat
our results as associational; longitudinal studies with several
years of panel data
would help validate our findings to increase their
generalizability and to enable stronger claims related to
causality. Longitudinal studies could also
help sort out the extent to which the stock market is efficient in
recognizing the improvements in fundamentals due to
managerial interventions and
strategic choices. Second, although we used a perceptual single-
item measure for primary emphasis in IT strategy—which is not
a major limitation
per se, as other studies have also used similar measures (Rust et
al. 2002; Tallon 2007, 2008) and such measures can be
preferred in certain
contexts to elicit appropriate response behavior and clearer
interpretation of findings (Drolet and Morrison 2001; Rossiter
2002; Wanous et al. 1997)
—further studies with alternative operationalizations using
multi-item scales might be helpful.
Third, we used two of many possible measures of organi-
zational performance, future research should use a more
comprehensive approach for
assessing the effect of IT strategies and IT investments on
performance (see Richard et al. 2009). In particular, although
some may question
whether Tobin’s Q, developed in 1969, is a relevant metric in
today’s dynamic business environment, to the extent that a large
share of top
managers’ compensation is tied to stock performance, focusing
on Tobin’s Q is still informative and is in line with recent
research linking IT with firm
performance (e.g., Tafti et al. 2013). Fourth, although this study
provides useful insights by leveraging data on both IT
47. investments and IT strategic
emphasis, richer conceptualizations and theorizing along the
lines in other studies (e.g., Oh and Pinnsonneault 2007; Tallon
2007) can be
illuminating. Fifth, our findings are more likely to apply to
single-business firms or strategic business units where a
dominant IT strategic emphasis
can be clearly identified because it may be harder to identify a
dominant IT strategic emphasis in conglomerates or multi-
business firms that are
much more dominant in emerging economies but are sometimes
considered relevant even in the West as reflected in Google’s
reorganization in
2015 (The Economist 2014, 2015; Mithas 2015). Nevertheless,
the findings are still useful for the strategic business units
within such conglomerates.
Finally, and perhaps most importantly, although we provide
plausible arguments for the likely mechanisms that drive our
results, we did not directly
test those mechanisms; we discuss this issue in the research
implications section to motivate a program of research.
Implications for Research
Several important conclusions result from the conjectures
motivated by Table 1 and tested in our empirical analyses.
These conclusions generate
implications for developing a program of research that explains,
extends, or clarifies our findings. First, our findings suggest
that the overall effect of
IT strategic emphasis on firm performance depends on the type
of strategic emphasis, levels of IT investments, and specific
measures of firm
performance. Unlike Rust et al. (2002), who report the effect of
strategic quality emphasis on profitability, our findings show
that IT strategic
48. emphasis does not influence profitability at the mean level of IT
investments, and no one strategic emphasis is unconditionally
superior in terms of
profitability at all levels of IT investments. While Rust et al. do
not investigate the effect of quality-based strategic emphasis on
Tobin’s Q, we find that
firms with a revenue or dual IT strategic emphasis have a higher
Tobin’s Q than firms with a cost emphasis, at the mean value of
IT investments.
These differences in findings across studies investigating an
emphasis on quality and IT strategy highlight the need for
similar investigations of
emphases in other functional strategies or governance processes
such as exploitation versus exploration (O’Reilly and Tushman
2004), prospector
versus defender (Miles et al. 1978), autonomy versus control
(Tafti et al. 2007), centralization versus decentralization (Xue
et al. 2014), regulation-
versus consensus-based governance (Lazic et al. 2014),
standardization versus integration (Weill and Ross 2009),
focused versus broad search
(Leiponen and Helfat 2010), flexibility versus efficiency (Adler
et al. 1999) and their implications for firm performance. We
recognize that some
functional strategies may not have a dual focus in the sense of
the revenue and cost emphases used in this paper.
Second, although our focus in this study was on IT strategic
emphasis, IT strategic emphasis is not completely independent
of the overall strategy of
a firm and strategic emphases in other areas (e.g., marketing,
operations, capital projects). There is a need for further
research to better understand
49. the linkages and interactions between strategic emphases across
functional areas, how they relate to IT strategy and the overall
strategy of firm, and
the implications for firm performance.
Third, although we find that the dual strategic emphasis alone is
associated with a higher Tobin’s Q, and stronger IT– Tobin’s Q
and IT–profitability
relationships, there remains the need to quantify the risks
associated with adopting dual strategies and higher IT
investments. The complexities and
path dependence of a dual-emphasis strategy can also make
firms more rigid and reduce their flexibility to compete
successfully if the environment
changes suddenly.
Fourth, in terms of implications for future theoretical work, our
study suggests a need for analytical work on the one hand and a
deeper unpacking of
the notion of IT ambidexterity and its implications on the other
hand, beyond some nascent work in the IS literature that has
begun to examine various
notions of ambidexterity at multiple levels (Cao et al. 2013-14;
Gregory et al. 2015; Im and Rai 2008; Khuntia et al. 2014; Kude
et al. 2015; Lee et al.
2015; Schmidt et al. 2014; Tiwana 2010). In particular,
theorizing and testing how diversity of IT systems, stretch
targets, and specific combinations
or configurations of specific IT systems allow firms to develop
IT ambidexterity is an attractive area of inquiry. There are also
opportunities to study IT
ambidexterity at the project or application level, perhaps using
a case study approach (Cederlund et al. 2007; Kohli and
Hoadley 2006; Ramasubbu et
al. 2014). Such case studies might facilitate better opportunities
for theory-building and for understanding the performance
50. implications of fit between
strategic objectives of that project and the application
capabilities. It is also likely that some projects that initially
offer cost reduction opportunities
might subsequently provide revenue growth opportunities. For
example, UPS introduced its Delivery Intercept Service because
its existing IT
infrastructure enabled them to do so. While the original system
facilitated cost reduction, the same technology enabled UPS to
increase revenue
subsequently. Such options (previously unknown) provide
opportunities from existing infrastructures that cannot be easily
classified into a narrow
bucket. Although we recognize that theory-building is an
important undertaking in and of itself, we call for an equally
important consideration of
operational issues, such as how theoretical constructs will be
measured in a practical and unobtrusive manner to test theories
and to generate
insights for practitioners.
Finally, we call for further research to articulate the boundary
conditions of when dual-emphasis is likely to be rewarding and
when it may be
deleterious, in the spirit of “pursuing failure” to prune theories
(Gray and Cooper 2010). Although the jury is still out on some
of the arguments that
Gray and Cooper make as they themselves acknowledge, we can
add that scientific enterprise is just as well served by curiosity-
and problem-driven
research (Lawrence 1992) in a context where organizations are
best viewed as tools instead of natural objects that are
susceptible to laws,
experimental controls are lacking, and regularities are often
context and time-dependent (Davis 2010). How might one go
about testing as to which
51. theory or mechanism (or a combination of mechanisms) among
those listed in Table 1 provides the best explanation for why
dual-emphasis in IT
strategy and its interaction with IT investments is associated
with superior performance? We can envision a research program
for operationalizing
the mechanisms, collecting data on them from secondary or
primary sources and then testing their relative explanatory
power. While prior literature
on RBV may provide guidance for operationalizing some of
these mechanisms, some new measures may have to be
developed for opera-tionalizing
reduced diminishing returns (for example, by counting total
number and types of revenue expansion and cost reduction IT
projects that are part of an
organization’s consideration set in a year) and stretch targets
across revenue and cost domains (for example, number of
revenue and cost metrics
used by the IT department of an organization). Although
creating new scales will be useful, in some cases, researchers
may come across archival
but unobtrusive data that may proxy for some of the underlying
ideas in Table 1 for initial tests of competing mechanisms. Like
other tests of
organizational theories (for a discussion, see Davis 2010), it is
unlikely that any one study or method of enquiry can provide a
definitive test of the
conjectures or implications arising from our research or the
ideas listed in Table 1. However, we hope that multiple studies
across varying contexts
with differing approaches will give us a vantage point to make
sense of the contours of the richness and complexity of
organizational strategies,
52. resources, and associated performance outcomes to develop
useful insights and generalizations.
Implications for Practice
Our most important managerial implication is that a dual or
revenue emphasis in IT strategy pays off in terms of firm
valuation, as measured by
Tobin’s Q, even though profitability is not improved at the
mean level of IT investments. We also find that firms with a
dual emphasis in IT strategy are
more profitable and have a higher Tobin’s Q when they invest
more in IT. At lower IT budget levels, it is best for the firm to
choose one strategy or the
other—either revenue expansion or cost cutting—as its primary
IT emphasis. How would Tobin’s Q vary if a dual-emphasis
firm did not spend higher
amounts on IT? The answer to this counterfactual question
would require a randomized field trial involving the assignment
of low and high IT
investments to dual-emphasis firms. However, in the absence of
such a field trial, our observational study leverages variation in
IT investments
across dual-emphasis firms in our sample to provide a
preliminary answer. Figures 1–4 show that at lower levels of IT
investments, dual-emphasis
firms do about as well as single-emphasis firms in terms of
profitability, although they do slightly better than single-
emphasis and particularly cost-
emphasis firms in terms of Tobin’s Q (see Figure 4).
In a broader sense, our study provides an assessment of the
implications of IT strategic emphasis for multiple measures of
firm performance. Our
results suggest that IT strategic emphases have a significant
impact on market value at the mean value of IT investments,
53. despite no differences in
profitability at those levels of IT investments. Our results are
not only statistically but also economically or practically
significant because Tobin’s Q for
dual-emphasis firms is 0.31 higher (because these are large
firms, a Tobin’s Q of 0.31 means 31 percent of replacement cost
of assets of the large
firms in our sample which is an economically large quantity) at
the mean level of IT investments (see Aguinis et al. [2010] for
further discussion of
statistical versus practical significance; see also Fornell et al.
[2009]). Managers need to understand the trade-offs involved in
pursuing a particular
strategic emphasis in a functional area, and depending on the
strategic goals, they can choose a particular IT strategic
emphasis that meets their
needs. In particular, because adoption of a particular strategic
emphasis affects market value without affecting profitability,
managers need to
consider the market value implications of their actions and
strategic choices carefully even if they do not appear to affect
profitability (Kohli et al.
[2012] make similar observations). It is also possible that
strategic emphases in different functional areas have different
implications for managing
profitability and Tobin’s Q, and by combining the strategic
choices across various functional areas, managers may be able
to select a portfolio of
strategic options to meet their desired performance objectives.
Another managerial implication of our findings pertains to
tactical actions and investments in discretionary expenditures
such as advertising, R&D,
54. and IT investments to operationalize the strategic emphasis in a
functional area. Although managers can view IT investments as
providing the firm
with the capabilities to become ambidextrous and agile for
improved firm performance, this does not mean that all IT
systems and applications can
help with revenue growth or cost reduction. As we argue in the
“Background” section, it is not so much which applications
firms use but rather what
their overall strategic objectives are for deploying the
applications that is more critical, because we argue that
managerial beliefs, mental models, and
strategic posture shape an organi-zation’s IT governance and
management of IT projects to create business value (Mithas et
al. 2013). This means
that managers can choose a suitable portfolio or combinations
of appropriate IT applications (each of which may only provide
either revenue growth
or cost benefits to a greater degree, with some exceptions such
as business analytics systems that may provide dual
capabilities) that are
consistent with their strategic objective. For example, while
CRM systems may help firms improve customer satisfaction
(Mithas et al. 2005, 2016)
and, in turn, repurchase intentions and sales (Lariviere et al.
2016); eProcurement and RFID (radio-frequency identification)
systems may help firms
reduce costs (Mithas and Jones 2007; Whitaker et al. 2007).
Thus, managers need to synchronize their IT strategic emphasis
with related IT
applications to achieve their strategic objectives.
Conclusion
To conclude, this research empirically tested the effect of IT
strategic emphases and IT investments on firm profitability and
55. market value. Using
archival data from a broad cross-section of more than 300 U.S.
firms, we find that at the mean value of IT investments, dual-
emphasis firms have a
higher Tobin’s Q than firms with a revenue or a cost emphasis,
without any statistically significant differences in profitability
due to strategic
emphases. Of greater importance, IT strategic emphasis plays a
significant role in moderating the relationship between IT
investments and firm
performance. Dual-emphasis firms have a stronger IT–
profitability relationship than single-emphasis firms, and dual-
emphasis firms have a stronger
IT–Tobin’s Q relationship than revenue-emphasis firms.
Overall, while this research provides useful insights into the
effects of IT-related strategic
emphasis on firm performance, the findings imply that the
effects of strategic emphasis (revenue growth, cost reduction, or
a dual emphasis) on firm
performance can vary significantly and are conditional on levels
of IT investments. For typical levels of IT expenditure, a dual
emphasis in IT strategy
pays off in terms of a higher firm valuation, and a higher level
of IT investments makes a dual emphasis increasingly
attractive, with respect to both
profitability and Tobin’s Q. These findings should help
managers craft their IT strategies and better allocate resources
for IT systems to achieve or
sustain competitive advantage.
Acknowledgments
We thank Rajiv Kohli (the senior editor), Andrew Burton-Jones
(the associate editor), the three anonymous reviewers of MIS
Quarterly, and seminar
participants at the Marketing Strategy Meets Wall Street
56. Workshop (January 24-29, 2009) at Goizueta Business School,
Emory University, for helpful
comments to improve this work. We also acknowledge helpful
discussions with Andrew Baer, former CIO of Comcast, to
inform our thinking and
arguments.
Footnotes
1 Rajiv Kohli was the accepting senior editor for this paper.
Andrew Burton-Jones served as the associate editor.
2 Although the lagged value of an endogenous independent
variable is not a perfect instrument, it is often used in the
absence of better instruments
(Kennedy 1994). Prior studies in the business value of IT
literature have justified or used similar instruments (Han and
Mithas 2013; Hitt and
Brynjolfsson 1996; Kohli, Devaraj and Ow 2012; Mithas et al.
2012).
3 Overall strategy of a firm may be determined by its industry,
and we account for that correlation to some extent but we
acknowledge that future
research should explore controls for a firm’s overall strategy.
4 In addition to the instrumental variable approach, there are
other methods that can be used to assess the causal nature of
treatment effects and
sensitivity of parameter estimates. These include propensity
score matching, impact threshold for a confounding variable,
and regression
discontinuity approaches (Kim et al. 2014; Kohli et al. 2012;
Mithas and Krishnan 2009), among others. However, the use of
such methods is context
57. dependent on the type of research questions and data to which
researchers have access.
5 Prior studies in the business value of IT literature have also
used similar lagged values as the instrumental variable,
although the exact
operationalization is always subject to data limitations and
somewhat context-specific. Therefore, conceptually and
empirically our choice of
instrument is consistent with prior literature (Han and Mithas
2013; Hitt and Brynjolfsson 1996; Kohli et al. 2012; Mithas et
al. 2012).
6 Sometimes researchers use multiple instruments and report
some statistical tests to provide confidence in usage of such
multiple instruments.
Such instruments have often been criticized because they also
come with unexplained or non-verifiable assumptions.
GRAPH: Figure 1. IT–Profitability Relationship for Dual-
Versus Single-Emphasis Firms (Revenue or Cost) (other
variables are at their mean value)
GRAPH: Figure 2. IT–Tobin’s Q Relationship for Dual- Versus
Single-Emphasis Firms (Revenue or Cost) (other variables are at
their mean value)
GRAPH: Figure 3. IT–Profitability Relationship by Dual,
Revenue, and Cost IT Strategic Emphasis (other variables are at
their mean value)
GRAPH: Figure 4. IT–Tobin’s Q Relationship by Dual,
Revenue, and Cost IT Strategic Emphasis (other variables are at
their mean value)
DIAGRAM: HOW INFORMATION TECHNOLOGY
58. STRATEGY AND INVESTMENTS INFLUENCE FIRM
PERFORMANCE: CONJECTURE AND
EMPIRICAL EVIDENCE1
DIAGRAM: HOW INFORMATION TECHNOLOGY
STRATEGY AND INVESTMENTS INFLUENCE FIRM
PERFORMANCE: CONJECTURE AND
EMPIRICAL EVIDENCE1
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Appendix