Information Technology Impacts on Firm Performance: An Extension of Kohli and Devaraj (2003)

Author List: Sabherwal, Rajiv; Jeyaraj, Anand;
MIS Quarterly, 2015, Volume 39, Issue 4, Page 809-836.
Despite the importance of investing in information technology, research on business value of information technology (BVIT) shows contradictory results, raising questions about the reasons for divergence. Kohli and Devaraj (2003) provided valuable insights into this issue based on a meta-analysis of 66 BVIT studies. This paper extends Kohli and Devaraj by examining the influences on BVIT through a meta-analysis of 303 studies published between 1990 and 2013. We found that BVIT increases when the study does not consider IT investment, does not use profitability measure of value, and employs primary data sources, fewer IT-related antecedents, and larger sample size. Considerations of IT alignment, IT adoption and use, and interorganizational IT strengthen the relationship between IT investment on BVIT, whereas the focus on environmental theories dampens the same relationship. However, the use of productivity measures of value, the number of dependent variables, the economic region, the consideration of IT assets and IT infrastructure or capability, and the consideration of IT sophistication do not affect BVIT. Finally, BVIT increases over time with IT progress. Implications for future research and practice are discussed.
Keywords: Information technology; business value of information technology; firm performance; meta-analysis; investment; payoff
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#209 0.249 results study research information studies relationship size variables previous variable examining dependent increases empirical variance accounting independent demonstrate important addition
#271 0.193 technology investments investment information firm firms profitability value performance impact data higher evidence diversification industry payoff return findings decisions greater
#229 0.117 alignment strategic business strategy performance technology value organizational orientation relationship information misalignment matched goals perspective fit firms executives argue need
#59 0.099 capabilities capability firm firms performance resources business information technology firm's resource-based competitive it-enabled view study value infrastructure results organizational model
#116 0.097 research study influence effects literature theoretical use understanding theory using impact behavior insights examine influences mechanisms specifically context perspective findings
#182 0.073 percent sales average economic growth increasing total using number million percentage evidence analyze approximately does business flow annual book daily
#193 0.055 time use size second appears form larger benefits combined studies reasons selected underlying appear various significantly result include make attention