A Conceptual Framework to Examine the Time-Lag Effect of ICT Investment on Firm Performance

Marjan Mohd Noor C.A (m), Jaya Kumar Shanmugam, Shafawaty Mohamad Shabri A.M (m), Raja Ade Fitrasari Mochtar and Wan Kamarul Hazim Wan Ya C.A (m)
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Marjan Mohd Noor C.A (m): Fakulti Perakaunan, Universiti Teknologi MARA, Cawangan Perlis, Kampus Arau, 02600 Arau, Perlis, Malaysia
Jaya Kumar Shanmugam: Fakulti Perakaunan, Universiti Teknologi MARA, Cawangan Kedah, Kampus Sungai Petani, 08400 Merbok, Kedah, Malaysia
Shafawaty Mohamad Shabri A.M (m): Fakulti Perniagaan & Komunikasi, Universiti Malaysia Perlis (UniMAP), 02100 Padang Besar, Perlis, Malaysia
Raja Ade Fitrasari Mochtar: Program Studi Akuntansi, Fakultas Ekonomi dan Bisnis, Universitas Islam Riau, Bukit Raya, Kota Pekan Baru, Riau 28284, Indonesia
Wan Kamarul Hazim Wan Ya C.A (m): Kumpulan Ladang-Ladang Perbadanan Kedah Sdn Bhd, 05000 Alor Setar, Kedah, Malaysia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 14, 1660-1669

Abstract: This study proposes a conceptual research framework to explain how ICT investment influences firm performance by integrating two theoretical foundations: the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT). The RBV highlights ICT as a strategic resource and DCT emphasizes a firm’s ability to adapt and reconfigure ICT resources in response to changing environments. Recognizing that ICT investments involve high initial costs and delayed payoffs, the framework incorporates time-lag effects, suggesting that the impact of ICT investment may only materialize after several years. The study develops hypotheses to capture both immediate and delayed effects of ICT investment across time periods from year t to t-7. By aligning theoretical perspectives with the time-sensitive nature of ICT returns, the framework offers a comprehensive view of how ICT investment contributes to long-term firm performance. The findings are expected to provide practical guidance for decision-makers and future researchers in evaluating and managing ICT resources for sustainable competitive advantage.

Date: 2025
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