Effects of firm and IT characteristics on the value of e-commerce initiatives: An inductive theoretical framework

Francis Kofi Andoh-Baidoo (), Kweku-Muata Osei-Bryson () and Kwasi Amoako-Gyampah ()
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Francis Kofi Andoh-Baidoo: University of Texas—Pan American
Kweku-Muata Osei-Bryson: Virginia Commonwealth University
Kwasi Amoako-Gyampah: University of North Carolina at Greensboro

Information Systems Frontiers, 2012, vol. 14, issue 2, No 9, 237-259

Abstract: Abstract We explore the theoretical foundations on how firm and IT characteristics explain the market value variations in e-commerce initiatives by examining the announcements of 946 e-commerce initiatives in the public media. Our approach combines the Event study methodology and Decision tree induction to examine the main and interaction effects of IT and firm characteristics on Cumulative Abnormal Returns (CAR). In particular, we generate complex interaction models that can guide e-commerce investment decisions so managers can know, for example, which combination of IT and firm characteristics are more likely to be viewed positively by investors. The selected study variables as well as explanation of the proposed framework are informed by innovation, resource-based view, transaction cost economics and complementarity theories. We have inductively developed a set of propositions that can be deductively tested to assess the validity of our proposed theoretical framework. Hence our study provides an initial roadmap for theory development on e-commerce and CAR.

Keywords: E-commerce announcements; Market value; CAR; Event study; IT and firm characteristics; Decision tree induction; Inductive theory (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s10796-010-9234-4

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