(PDF) Information Technology Investments: A Literature Review | Ra'ed Masa'deh - grutbbs.cf

 

literature review on information technology

technology and the culture of learning exists, the review focuses solely on technology and teaching and learning within the context of K schools in the United States. The focus is purposefully on U.S. K schools to allow a thorough synthesis of the immense body of . Business Transformation through Innovation and Knowledge Management: An Academic Perspective Information Technology Investments: A Literature Review Rifat O. Shannak, Associate Professor of MIS, Chairman of Department of MIS, Faculty of Business, University of Jordan,, Amman, Jordan, [email protected], Ra’ed (Moh’d Taisir) Masa’deh, Faculty of Business, The . Jul 18,  · An effective review analyses and synthesizes material, and it should meet the following requirements more Guide to lit reviews from the University of Melbourne) How to write a literature review (UCSC) Review of Literature (UW-Madison) American University Library Tutorial; The Literature Review (University of Toronto)Author: Joseph Mercuri.


Information Technology Literature Review


To browse Academia. Skip to main content. You're using an out-of-date version of Internet Explorer, literature review on information technology. Log In Sign Up. Ra'ed Masa'deh. This is to a certain extent due to the exclusion of IT-business partnership also known as IT-business strategic alignment.

Indeed, strategic alignment has emerged as one of the most important concern facing business and IT executives all over the world Raymond and Croteau,Johnson and Lederer, Therefore, the purpose of this paper is to provide a detailed literature review that both academics and practitioners can use in order to understand the resources required to realize the potential values of their IT investments.

It is hoped that literature review on information technology article will spark helpful discussion on the merits of continuous examination of IT investments.

Introduction Firms invest heavily in IT such as hardware, software, literature review on information technology, network, and data components; in order to improve their performance Oana, However, based on the mixed findings of the linkage between IT spending and firm performance, some researchers in the MIS field point to IT-business alignment as a construct that can help organizations to improve the positive impact of IT on organizational performance e. Henderson and Venkatraman, ; Luftmanet al.

Furthermore, little empirical evidence has examined the relationship between strategic alignment and IT payoffs. Some researchers have shown that strategic alignment is correlated with firm performance Chan et al. In other words, this paper sheds light on how firms can improve firm performance with IT investments. The conclusions of the study are then provided and areas for further research are also addressed. They seek to test the correlation between IT investment and economic performance e.

Some researchers defined IT investment as including investments in computers, telecommunications, hardware, software, and services Dedrick literature review on information technology al. Also, Dedrick et al. At the country level, it literature review on information technology to economic growth, labour productivity growth, and consumer welfare. Economic growth is the rate of change in real output or gross domestic products GDPliterature review on information technology, which is measured at the country level.

Labour productivity growth or growth in output per worker is an evaluation of the efficient use of resources to create value. Consumer welfare could be achieved when the economy provides lower-cost goods and services relative to the income of domestic consumers. Measures that spotlight the output of an industry sector like financial measures are used at the industry level. Also, at the firm level labour productivity growth and profitability literature review on information technology the metrics of economic performance.

However, the main issue concerning researchers for a long time was assessing the business value and organizational impact of IT investment, and was applied using two main research approaches.

The first approach contains literatures that studied the direct linkage between IT investment and organizational performance at many diverse levels, as Bakos and Treacy suggested, such as the economy, industry, and firm levels. The second approach includes empirical studies, which tried to establish an indirect association between IT investment and organizational performance through some intermediary processes. At the countrywide and industry levels, earlier studies did not recognize positive impacts from IT spending.

Nevertheless, recent macroeconomic research has shown that IT investments impact upon labour productivity and economic growth. This is in part because IT takes a place in the investments proportion. For instance, Roach studied the IT impact of productivity on information and production workers, and found that information worker productivity had neither decreased in some sectors, nor fluctuated with production worker literature review on information technology in the manufacturing sector.

However, he concluded that the tremendous increase in computerization had little effect on economic performance.

Also, Baily and Chakrabarti showed no correlation between IT investments and productivity. They claimed that when production becomes gradually more information intensive, the relative productivity drops as a result of the declining IT price, thus, IT is a poor replacement for information workers.

In addition, Loverman examined the period from to on some business units of a manufacturing sector and concluded that the contribution of IT capital investment to productivity as output is about zero.

Furthermore, he showed that the marginal dollar would be better employed if spent on non-IT input like non-IT capital. Also, Strassmann found no association between spending on computers and profits or productivity. He concluded that it is not how much is spent on IT, but how IT assets are managed which makes the difference. Kraemer and Dedrick noted a positive relationship between IT investment associated with GDP and productivity growth, literature review on information technology, based on a period from toin twelve Asian-Pacific states.

Furthermore, they found in their study Kraemer and Dedrick, of forty-three states that the level of IT investment as a percentage of GDP was not statistically significant to productivity growth. However, Litan and Rivlin found that the internet and electronic commerce contributed to productivity, literature review on information technology. A study of the Mexican banking industry in the period from to was conducted by Navarrette and Pick They used time series technique for eleven years to test the correlation between IT expenditure and three performance measures, literature review on information technology net profits, return on assets ROAand return on equity ROE.

Thus, in their study the productivity paradox was rejected. Furthermore, at the firm level, some studies have failed to find a relationship between IT investment and firm profitability. Markus and Soh tested the correlation between firm profitability and a set of IT- related variables like IT expenditure, extent of computerization, and proportion of IT services outsourced. They controlled for bank size and diversity of banking activities. They found that smaller banks achieved returns on their IT spending more than larger banks.

Nevertheless, literature review on information technology, when they considered a lagged IT expenditure accumulated over four years, they found that, within larger banks, the more extensive computerization was correlated with greater firm profitability than in smaller banks, literature review on information technology. However, Hitt and Brynjolfsson found that IT investments affected productivity and contributed to consumer welfare through better services and lower prices, but this did not necessarily improve profitability.

This was because productivity benefits passed to consumers through lower prices, and not directly to superior profitability. Hitt and Brynjolfsson explained that the reason behind literature review on information technology non-improvement of business profitability from IT investment was that buyers decrease their costs for searching for low-cost products and services and selecting for new suppliers. Therefore, the lower price that buyers pay for products or services could reduce profitability.

Consequently, firms should try to protect their profitability by relying on business strategies like diversification and product differentiation. On the other hand, some studies investigated the relationship between IT investments and firm performance through some intermediary variables, literature review on information technology.

For instance, literature review on information technology, Barua et al. The researchers found that IT investment affected most of the intermediate measures as inventory turnover, which affected firm performance, as the latter was measured by return on assets ROA and market share.

Rai et al. Whereas their outputs expressed three different performance items including: firm output sales and value-addedfinancial ROA and ROE and intermediate labour productivity and administrative productivity performance. They found that IT investments partially associated with firm output positively, indicating a lack of a clear correlation between IT investments and business performance. The explanation of such findings was that financial performance might be significantly affected by variation in the links between IT, business strategy, and competitive context across firms.

They emphasised that the integration of these contingencies could better explain correlations between IT investments and financial performance. Indeed, studies at literature review on information technology firm level show that the value of IT investments is influenced by the structure, strategy, and business practices of the firms.

For example, Weill explained that the quality of management in a firm and its commitment to spend in IT increases the contribution of IT investments to firm performance.

Tallon et al. In addition, Dedrick et al. Thus, if developed models are able to control for more factors that affect profitability, then IT investments and firm performance could be revealed. Business Transformation through Innovation and Knowledge Management: An Academic Perspective In summary, prior studies failed to capture the positive effects from IT spending, whereas, recent studies discerned more encouraging results. Also, researchers indicated that productivity enhancements were superior within the manufacturing sector than in the service sectors.

In addition, earlier research at the firm level was unable to show that IT investments led to productivity. This is in part because literature review on information technology inadequate data on IT investments, and small sample sizes Brynjolfsson and Hitt,; Brynjolfsson and Yang, Brynjofsson has given four explanations of the reasons behind the paradox existence: measurement errors in input and output variables that used in different studies; the lagged effect of IT, due to learning and adjustment; redistribution and dissipation of profits; and mismanagement of IT.

The final reason could occur when managers mimic the investment decisions of other managers, and ignore important information, or the overload negative effect from adopting new technology, which affects the organization strategically structurally.

Further, Brynjolfsson and Hitt called for more research into how IT can become more effective, specifically identifying the right mix of growth and innovation strategies, and the business processes and organizational structures that best complement IT investment, literature review on information technology. This necessitates the testing of the associations between business and IT strategy, and business and IT structure, with organisational performance.

Therefore, the debate on the effects of strategic alignment on firm performance is discussed below, literature review on information technology. Indeed, in the IT management field, several studies showed a positive relationship between strategic alignment and perceived firm performance e.

Sabherwal and Kirs, ; Chan et al. For example, Sabherwal and Kirs used survey data from large academic institutions in the USA to test whether the alignment between organisational strategy and IT capability could enhance firm performance. They found a positive relationship between alignment and perceived performance. In addition, evidence has been found by Chan et al. Also, business strategy and IS strategy have a positive impact on business performance.

Chan et al. They found that strategic literature review on information technology was a better predictor of business performance when measured by market growth, product service innovation, company reputation, and financial performance items.

Like Chan et al. They measured performance by using a five-point Likert scale based on two dimensions: market growth gains related to competition in the last three years, and profitability.

However, although they found negative associations between business strategy and business performance, a positive linkage was shown between strategic alignment and perceived business performance.

Competitive advantage was evaluated by using several perceived measures, such as the extent to which IS has been used to lower costs or create product differentiation, to leverage unique firm capabilities, to enable existing business strategies, and to create new business strategies. Cragg et al. This includes long-term profitability, availability of financial resources, sales growth, and image and client loyalty.

By using mail questionnaire data from firms, the authors supported the proposition and indicated that small firms with a high level of alignment achieved better firm performance than firms with low alignment. Kefi literature review on information technology Kalika considered alignment as a co-variation method between business strategy and IT strategy. They obtained a total of questionnaires from IT and business managers in various sectors such as manufacturing, telecommunication, and IT services.

Their aim was to test the effect of strategic alignment on perceived business performance. Performance was assessed by asking informants, on a five- point Likert scale, the degree to which their firms perform in terms of productivity, cost reduction, innovation capabilities, reactivity capabilities toward business opportunities, responsiveness to customer requirements, literature review on information technology, and collaborative relationship with business partners.

In their study, the authors applied structural equation modelling technique and supported the path from strategic fit to firm performance. In other words, the higher level of alignment leads to higher level of performance.

In addition, by asking 84 pairs of IT managers and plant managers, Byrd et al.

 

 

literature review on information technology

 

PDF | While researchers have encouraged further examination on the causal links between Information Technology (IT) investments and a firm’s performance, results of empirical studies have been. Jul 18,  · An effective review analyses and synthesizes material, and it should meet the following requirements more Guide to lit reviews from the University of Melbourne) How to write a literature review (UCSC) Review of Literature (UW-Madison) American University Library Tutorial; The Literature Review (University of Toronto)Author: Joseph Mercuri. technology and the culture of learning exists, the review focuses solely on technology and teaching and learning within the context of K schools in the United States. The focus is purposefully on U.S. K schools to allow a thorough synthesis of the immense body of .