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Complementarity and Contextuality in the Adoption of Information Systems in Korean Firms

Author

Listed:
  • Yunhee Kim
  • Jae Young Choi
  • Yeonbae Kim

    () (Technology Management, Economics, and Policy Program (TEMEP), Seoul National University)

Abstract

In order to examine the impact of adoption of Information Systems (ISs) on the actual performance of firms, we estimated the complementarities among ISs and found contextual factors using a survey dataset of 616 Korean firms. In particular, we introduced various contextual variables and analyzed their effects on the complementarities of firms. Our results indicate that IT stock serves as an important contextual factor for enhancing the complementarity between adoptions of Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM). It was also revealed that while IT stock has a strong positive direct impact on the performance of firms as well as an indirect impact mediated by ISs, other IT-related variables (such as IT organization and use of firewall) generally have a positive impact only when they are combined with the adoption of ISs.

Suggested Citation

  • Yunhee Kim & Jae Young Choi & Yeonbae Kim, 2009. "Complementarity and Contextuality in the Adoption of Information Systems in Korean Firms," TEMEP Discussion Papers 200919, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Oct 2009.
  • Handle: RePEc:snv:dp2009:200919
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    References listed on IDEAS

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    More about this item

    Keywords

    Information systems; performance of firms; complementarity; contextuality.;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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