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Complementarity and contextuality in the adoption of information systems

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  • Yunhee Kim
  • Jae Young Choi
  • Yeonbae Kim

Abstract

To understand the impact of Information Systems (ISs) on actual performance, we employed 616 Korean firms to estimate the complementarities among such systems and to uncover the contextual factors influencing them. In particular, we introduced various contextual variables and analysed their effects on the complementarities of firms. Our results indicate that Information Technology (IT) stock serves as an important contextual factor for enhancing the complementarity between the adoption of Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM). Furthermore, although IT stock has a strong positive direct and indirect IS-mediated impact on the performance of firms, other IT-related variables such as IT organization and the use of firewalls generally have a positive influence only when they are combined with the adoption of ISs.

Suggested Citation

  • Yunhee Kim & Jae Young Choi & Yeonbae Kim, 2011. "Complementarity and contextuality in the adoption of information systems," Applied Economics Letters, Taylor & Francis Journals, vol. 18(16), pages 1613-1618.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:16:p:1613-1618
    DOI: 10.1080/13504851.2011.556583
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    References listed on IDEAS

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