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The influence of firm specific context on realizing information technology business value in manufacturing industry

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  • Yao, Lee J.
  • Liu, Chunhui
  • Chan, Siew H.

Abstract

Both rising competitions and the enormous size of information technology (IT) investment have led to serious managerial concerns over the business value of IT. Despite high perceived values of IT, empirical studies have generally reported mixed results when examining the relationship between IT spending and firm productivity. Using contingency theory, we hypothesize that IT business value is influenced by firm specific context. An empirical examination of more than 3000 firm years over 1998–2000 from U.S. manufacturing industries reveals that durable goods industry firms and firms with higher level of vertical integration realized higher IT business value in improved labor and administrative productivity. In addition, the findings support the theoretical claim that IT spending does matter strategically in the right setting.

Suggested Citation

  • Yao, Lee J. & Liu, Chunhui & Chan, Siew H., 2010. "The influence of firm specific context on realizing information technology business value in manufacturing industry," International Journal of Accounting Information Systems, Elsevier, vol. 11(4), pages 353-362.
    • Handle: RePEc:eee:ijoais:v:11:y:2010:i:4:p:353-362
    DOI: 10.1016/j.accinf.2010.09.007
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    3. Khaled Saleh Al Omoush & Raed M. Al-Qirem & Zaid M. Al Hawatmah, 2018. "The degree of e-business entrepreneurship and long-term sustainability: an institutional perspective," Information Systems and e-Business Management, Springer, vol. 16(1), pages 29-56, February.
    4. Khaled Saleh Al Omoush & Raed M. Al-Qirem & Zaid M. Al Hawatmah, 0. "The degree of e-business entrepreneurship and long-term sustainability: an institutional perspective," Information Systems and e-Business Management, Springer, vol. 0, pages 1-28.
    5. Maiga, Adam S. & Nilsson, Anders & Jacobs, Fred A., 2013. "Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship," International Journal of Accounting Information Systems, Elsevier, vol. 14(4), pages 297-320.
    6. Tingey-Holyoak, Joanne & Pisaniello, John & Buss, Peter & Mayer, Wolfgang, 2021. "The importance of accounting-integrated information systems for realising productivity and sustainability in the agricultural sector," International Journal of Accounting Information Systems, Elsevier, vol. 41(C).
    7. Masli, Adi & Richardson, Vernon J. & Sanchez, Juan Manuel & Smith, Rodney E., 2011. "Returns to IT excellence: Evidence from financial performance around information technology excellence awards," International Journal of Accounting Information Systems, Elsevier, vol. 12(3), pages 189-205.

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