IT investments and firm performance across economies

Abstract

Research has shown a positive relationship between IT investments and firm performance. But the results vary across firms and performance measures. Evidence indicates that IT resource allocations, in the form of investment in specific IT asset classes and IT capabilities of the firm, may play an important role in explaining the variations. A monolithic view of firm's total IT investment is not sufficient to explain the performance variations. Firms must invest in specific IT assets along dimensions consistent with their strategic purpose. In addition, firms can derive additional value on their IT investment through a system of organizational IT capabilities based upon complementary practices and competencies. This thesis looks at the IT resources and performance of firms in both developed and emerging economies. In a globalizing world, the emerging economies are playing increasingly important roles for multinational firms as suppliers, back offices, service providers and new markets. The intent of this thesis is to analyze how top performing firms in different markets make use of their IT resources and capabilities.