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Article
Information Technology Impacts on Firm Performance: An Extension of Kohli and Devaraj (2003)
MIS Quarterly
  • Anand Jeyaraj, Wright State University - Main Campus
  • Rajiv Sabherwal
Document Type
Article
Publication Date
12-1-2015
Abstract

Despite the importance of investing in information technology, research on business value of information technology (BVIT) shows contradictory results, raising questions about the reasons for divergence. Kohli and Devaraj (2003) provided valuable insights into this issue based on a meta-analysis of 66 BVIT studies. This paper extends Kohli and Devaraj by examining the influences on BVIT through a meta-analysis of 303 studies published between 1990 and 2013. We found that BVIT increases when the study does not consider IT investment, does not use profitability measure of value, and employs primary data sources, fewer IT-related antecedents, and larger sample size. Considerations of IT alignment, IT adoption and use, and interorganizational IT strengthen the relationship between IT investment on BVIT, whereas the focus on environmental theories dampens the same relationship. However, the use of productivity measures of value, the number of dependent variables, the economic region, the consideration of IT assets and IT infrastructure or capability, and the consideration of IT sophistication do not affect BVIT. Finally, BVIT increases over time with IT progress. Implications for future research and practice are discussed.

Comments

Featured in the LSE Business Review (UK THELMA for Knowledge Exchange/Transfer Initiative of the Year recipient in 2012) at the London School of Economics, February 2016.

Citation Information
Anand Jeyaraj and Rajiv Sabherwal. "Information Technology Impacts on Firm Performance: An Extension of Kohli and Devaraj (2003)" MIS Quarterly Vol. 39 Iss. 4 (2015) p. 809 - 836 ISSN: 0276-7783
Available at: http://works.bepress.com/anand-jeyaraj/31/