Complementarity and Contextuality in the Adoption of Information Systems in Korean Firms

Yunhee Kim (), Jae Young Choi and Yeonbae Kim ()
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Yeonbae Kim: Technology Management, Economics, and Policy Program (TEMEP), Seoul National University

No 200919, TEMEP Discussion Papers from Seoul National University; Technology Management, Economics, and Policy Program (TEMEP)

Abstract: In order to examine the impact of adoption of Information Systems (ISs) on the actual performance of firms, we estimated the complementarities among ISs and found contextual factors using a survey dataset of 616 Korean firms. In particular, we introduced various contextual variables and analyzed their effects on the complementarities of firms. Our results indicate that IT stock serves as an important contextual factor for enhancing the complementarity between adoptions of Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM). It was also revealed that while IT stock has a strong positive direct impact on the performance of firms as well as an indirect impact mediated by ISs, other IT-related variables (such as IT organization and use of firewall) generally have a positive impact only when they are combined with the adoption of ISs.

Keywords: Information systems; performance of firms; complementarity; contextuality. (search for similar items in EconPapers)
JEL-codes: C35 D21 M21 O33 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2009-09, Revised 2009-10
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Published later version in the Journal of Applied Economics Letters of Taylor and Francis.

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Persistent link: https://EconPapers.repec.org/RePEc:snv:dp2009:200919

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