IS

Tafti, Ali

Topic Weight Topic Terms
0.591 technology investments investment information firm firms profitability value performance impact data higher evidence diversification industry
0.358 industry industries firms relative different use concentration strategic acquisitions measure competitive examine increases competition influence
0.318 public government private sector state policy political citizens governments contributors agencies issues forums mass development
0.317 business digital strategy value transformation economy technologies paper creation digitization strategies environment focus net-enabled services
0.220 performance results study impact research influence effects data higher efficiency effect significantly findings impacts empirical
0.196 effect impact affect results positive effects direct findings influence important positively model data suggest test
0.115 value business benefits technology based economic creation related intangible cocreation assessing financial improved key economics
0.113 effects effect research data studies empirical information literature different interaction analysis implications findings results important

Focal Researcher     Coauthors of Focal Researcher (1st degree)     Coauthors of Coauthors (2nd degree)

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Mithas, Sunil 2 Bardhan, Indranil R. 1 Goh, Jie Mein 1 Krishnan, M. S. 1
Mitchell, Will 1 Pang, Min-Seok 1
cost reduction 2 firm performance 2 advertising 1 discretionary expenditures 1
discretionary exp 1 digital business strategy 1 Information technology 1 industry competition 1
industry environment 1 industry growth 1 industry turbulence 1 IT investments 1
IT strategy 1 IT value 1 profitability 1 profitability paradoxh 1
public sector 1 revenue growth 1 research and development 1 resource-based view 1
strategic posture 1 stochastic frontier analysis 1 translog cost function 1 U.S. state governments 1

Articles (3)

Information Technology and Administrative Efficiency in U.S. State Governments: A Stochastic Frontier Approach (MIS Quarterly, 2014)
Authors: Abstract:
    This paper explores value creation from government use of information technologies (IT). While the majority of studies in the information systems (IS) discipline have focused on discovering IT business value in for-profit organizations, the performance effects of IT in the public sector have not been extensively studied in either the IS or the public administration literature. We examine whether IT improves administrative efficiency in U.S. state governments. Utilizing IT budget data in state governments, the census data on state government expenditures, and a variety of information on public services that states provide, we measure technical efficiency with a stochastic frontier analysis and a translog cost function and estimate the effect of IT spending on efficiency. Our analyses provide evidence for a positive relationship between IT spending and cost efficiency and indicate that, on average, a $1 increase in per capita IT budget is associated with $1.13 in efficiency gains. This study contributes to the IS literature by expanding the scope of IT value research to public sector organizations and provides meaningful implications for elected officials and public sector managers.
HOW A FIRM'S COMPETITIVE ENVIRONMENT AND DIGITAL STRATEGIC POSTURE INFLUENCE DIGITAL BUSINESS STRATEGY. (MIS Quarterly, 2013)
Authors: Abstract:
    In this paper, we examine how the competitive industry environment shapes the way that digital strategic posture (defined as a focal firm's degree of engagement in a particular class of digital business practices relative to the industry norm) influences firms' realized digital business strategy. We focus on two forms of digital strategy: general IT investment and IT outsourcing investment. Drawing from prior literature on determinants of IT activity and competitive dynamics, we argue that three elements of the industry environment determine whether digital strategic posture has an increasingly convergent or divergent influence on digital business strategy. By divergent influence, we mean an influence that leads to spending substantially more or less on a particular strategic activity than industry norms. We predict that a digital strategic posture (difference from the industry mean) has an increasingly divergent effect on digital business strategy under higher industry turbulence, while having an increasingly convergent effect on digital business strategy under higher industry concentration and higher industry growth. The study uses archival data for 400 U.S.-based firms from 1999 to 2006. Our findings imply that digital business strategy is not solely a matter of optimizing firm operations internally or of responding to one or two focal competitors, but also arises strikingly from awareness and responsiveness to the digital business competitive environment. Collectively, the findings provide insights on how strategic posture and industry environment influence firms' digital business strategy.
INFORMATION TECHNOLOGY AND FIRM PROFITABILITY: MECHANISMS AND EMPIRICAL EVIDENCE. (MIS Quarterly, 2012)
Authors: Abstract:
    Do information technology investments improve firm profitability? If so, is this effect because such investments help improve sales, or is it because they help reduce overall operating expenses? How does the effect of IT on profitability compare with that of advertising and of research and development? These are important questions because investments in IT constitute a large part of firms' discretionary expenditures, and managers need to understand the likely impacts and mechanisms to justify and realize value from their IT and related resource allocation processes. The empirical evidence in this paper, derived using archival data from 1998 to 2003 for more than 400 global firms, suggests that IT has a positive impact on profitability. Importantly, the effect of IT investments on sales and profitability is higher than that of other discretionary investments, such as advertising and R&D. A significant portion of the impact of IT on firm profitability is accounted for by IT enabled revenue growth, but there is no evidence for the effect of IT on profitability through operating cost reduction. Taken together, these findings suggest that firms have had greater success in achieving higher profitability through IT-enabled revenue growth than through IT-enabled cost reduction. They also provide important implications for managers to make allocations among discretionary expenditures such as IT, advertising, and R&D. With regard to IT expenditures, the results imply that firms should accord higher priority to IT projects that have revenue growth potential over those that focus mainly on cost savings.