Returns to IT excellence: Evidence from financial performance around information technology excellence awards

Adi Masli, Vernon J. Richardson, Juan Manuel Sanchez and Rodney E. Smith

International Journal of Accounting Information Systems, 2011, vol. 12, issue 3, 189-205

Abstract: The resource-based view has been used in IT business value research to theorize and investigate the impact of unique IT capabilities on sustainable competitive advantages. Prior research has empirically documented a positive association between superior IT capabilities and firm performance. However, such analyses have focused on IT capabilities of firms in the early 1990s. In this study, we examine the impact of superior IT capabilities on firm performance over the 1988–2007 period, which allows us to consider the structural shifts in the return of IT capability over time. Our results suggest that firms with superior IT capabilities are able to attain higher firm performance levels until 1999. However, such performance advantage disappears in the post-1999 time period. We also find that a subset of firms that sustain high levels of IT capabilities during the period 1988 to 2007 continue to perform better than their peers. We conclude that managers are able to achieve superior firm performance if they are able to maintain high levels of IT capability over time.

Keywords: Returns to IT excellence; Business value of IT; AIS research; Information technology; Excellence awards; IT capabilities (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ijoais:v:12:y:2011:i:3:p:189-205

DOI: 10.1016/j.accinf.2010.10.001

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