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Effects of firm and IT characteristics on the value of e-commerce initiatives: An inductive theoretical framework

Author

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  • Francis Kofi Andoh-Baidoo

    (University of Texas—Pan American)

  • Kweku-Muata Osei-Bryson

    (Virginia Commonwealth University)

  • Kwasi Amoako-Gyampah

    (University of North Carolina at Greensboro)

Abstract

We explore the theoretical foundations on how firm and IT characteristics explain the market value variations in e-commerce initiatives by examining the announcements of 946 e-commerce initiatives in the public media. Our approach combines the Event study methodology and Decision tree induction to examine the main and interaction effects of IT and firm characteristics on Cumulative Abnormal Returns (CAR). In particular, we generate complex interaction models that can guide e-commerce investment decisions so managers can know, for example, which combination of IT and firm characteristics are more likely to be viewed positively by investors. The selected study variables as well as explanation of the proposed framework are informed by innovation, resource-based view, transaction cost economics and complementarity theories. We have inductively developed a set of propositions that can be deductively tested to assess the validity of our proposed theoretical framework. Hence our study provides an initial roadmap for theory development on e-commerce and CAR.

Suggested Citation

  • Francis Kofi Andoh-Baidoo & Kweku-Muata Osei-Bryson & Kwasi Amoako-Gyampah, 2012. "Effects of firm and IT characteristics on the value of e-commerce initiatives: An inductive theoretical framework," Information Systems Frontiers, Springer, vol. 14(2), pages 237-259, April.
    • Handle: RePEc:spr:infosf:v:14:y:2012:i:2:d:10.1007_s10796-010-9234-4
    DOI: 10.1007/s10796-010-9234-4
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    Cited by:

    1. Xiaolin Lin & Mauricio Featherman & Stoney L. Brooks & Nick Hajli, 2019. "Exploring Gender Differences in Online Consumer Purchase Decision Making: An Online Product Presentation Perspective," Information Systems Frontiers, Springer, vol. 21(5), pages 1187-1201, October.
    2. David M. Goldberg & Jason K. Deane & Terry R. Rakes & Loren Paul Rees, 2022. "3D Printing Technology and the Market Value of the Firm," Information Systems Frontiers, Springer, vol. 24(4), pages 1379-1392, August.
    3. Kweku-Muata Osei-Bryson, 2015. "A hybrid decision support framework for generating & selecting causal explanatory regression splines models for information systems research," Information Systems Frontiers, Springer, vol. 17(4), pages 845-856, August.
    4. Remco Dijkman & Sander Vincent Lammers & Ad Jong, 2016. "Properties that influence business process management maturity and its effect on organizational performance," Information Systems Frontiers, Springer, vol. 18(4), pages 717-734, August.
    5. Gunjan Mansingh & Lila Rao & Kweku-Muata Osei-Bryson & Annette Mills, 2015. "Profiling internet banking users: A knowledge discovery in data mining process model based approach," Information Systems Frontiers, Springer, vol. 17(1), pages 193-215, February.
    6. Narcyz Roztocki & Heinz Roland Weistroffer, 2015. "Investments in enterprise integration technology: An event study," Information Systems Frontiers, Springer, vol. 17(3), pages 659-672, June.
    7. Chulhwan Chris Bang, 2015. "Information systems frontiers: Keyword analysis and classification," Information Systems Frontiers, Springer, vol. 17(1), pages 217-237, February.

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