Information Technology and Firm Boundaries: Impact on Firm Risk and Return Performance

Published Online:https://doi.org/10.1287/isre.1090.0261

References

  • Adelman M. A., Friedman M. Concept and statistical measurement of vertical integration. Business Concentration and Price Policy (1955) (Princeton University Press, Princeton, NJ) 281–322Google Scholar
  • Afuah A. Redefining firm boundaries in the face of the internet: Are firms really shrinking? Acad. Management Rev. (2003) 28(1):34–53CrossrefGoogle Scholar
  • Anderson M. C., Banker R. D., Ravindran S. Executive compensation in the information technology industry. Management Sci. (2000) 46(4):530–547LinkGoogle Scholar
  • Bakos J. Y. Reducing buyer search costs: Implications for electronic marketplaces. Management Sci. (1997) 43(12):1676–1692LinkGoogle Scholar
  • Bardhan I., Bagchi S., Sougstad R. Prioritizing a portfolio of information technology investment projects. J. Management Inform. Systems (2004) 21(2):33–60CrossrefGoogle Scholar
  • BarNir A., Gallaugher J. M., Auger P. Business process digitization, strategy, and the impact of firm age and size: The case of the magazine publishing industry. J. Bus. Venturing (2003) 18(6):789–814CrossrefGoogle Scholar
  • Barua A., Kriebel C. H., Mukhopadhyay T. Information technologies and business value: An analytic and empirical investigation. Inform. Systems Res. (1995) 6(1):3–23LinkGoogle Scholar
  • Barua A., Whinston A. B., Yin F. Value and productivity in the Internet economy. Computer (2000) 33(5):102–105CrossrefGoogle Scholar
  • Benaroch M. Managing information technology investment risk: A real options perspective. J. Management Inform. Systems (2002) 19(2):43–84CrossrefGoogle Scholar
  • Bharadwaj A. S., Bharadwaj S. G., Konsynski B. R. Information technology effects on firm performance as measured by Tobin's q. Management Sci. (1999) 45(7):1008–1024LinkGoogle Scholar
  • Bromiley P. Testing a causal model of corporate risk taking and performance. Acad. Management J. (1991) 34(1):37–59CrossrefGoogle Scholar
  • Brynjolfsson E., Hitt L. M. Paradox lost? Firm-level evidence on the returns to information systems spending. Management Sci. (1996) 42(4):541–558LinkGoogle Scholar
  • Brynjolfsson E., Hitt L. M., Yang S. Intangible assets: Computers and organizational capital. Brookings Papers Econom. Activity (2002) 1:137–199CrossrefGoogle Scholar
  • Brynjolfsson E., Malone T. W., Gurbaxani V., Kambil A. Does information technology lead to smaller firms? Management Sci. (1994) 40(12):1628–1644LinkGoogle Scholar
  • BusinessWeek The digital age storms the corner office. (2001) September 6Google Scholar
  • Cachon G. P., Fisher M. Supply chain inventory management and the value of shared information. Management Sci. (2000) 46(8):1032–1048LinkGoogle Scholar
  • Capon N., Farley J. U., Hoenig S. Determinants of financial performance: A meta-analysis. Management Sci. (1990) 36(10):1143–1159LinkGoogle Scholar
  • Carr N. G. IT doesn't matter. Harvard Bus. Rev. (2003) 81(5):41–49Google Scholar
  • Chang Y., Thomas H.Strategic Management J. (1989) 10:271–284CrossrefGoogle Scholar
  • Chari M. D. R., Devaraj S., David P. Research note: The impact of information technology investments and diversification strategies on firm performance. Management Sci. (2008) 54(1):224–234LinkGoogle Scholar
  • Clemons E. K., Row M. C. The Merrill Lynch cash management account financial service: A case study in strategic information systems. Systems Sci. (1988) 4:131–140Google Scholar
  • Clemons E. K., Row M. C. Sustaining IT advantage: The role of structural differences. MIS Quart. (1991) 15(3):275–292CrossrefGoogle Scholar
  • Cool K., Dierickx I., Jemison D. Business strategy, market structure and risk-return relationships: A structural approach. Strategic Management J. (1989) 10:507–522CrossrefGoogle Scholar
  • Davenport T. H.Process Innovation: Reengineering Work Through Information Technology (1993) (Harvard Business School Press, Cambridge, MA) Google Scholar
  • Davenport T. H. Competing on analytics. Harvard Bus. Rev. (2006) 84(1):98–107Google Scholar
  • Dedrick J., Gurbaxani V., Kraemer K. L. Information technology and economic performance: A critical review of the empirical evidence. ACM Comput. Surveys (2003) 35(1):1–28CrossrefGoogle Scholar
  • Dewan S., Min C. The substitution of information technology for other factors of production: A firm level analysis. Management Sci. (1997) 43(12):1660–1675LinkGoogle Scholar
  • Dewan S., Ren F. Risk and return of information technology initiatives: Evidence from electronic commerce announcements. Inform. Systems Res. (2007) 18(4):370–394LinkGoogle Scholar
  • Dewan S., Michael S. C., Min C. Firm characteristics and investments in information technology: Scale and scope effects. Inform. Systems Res. (1998) 9(3):219–232LinkGoogle Scholar
  • Dewan S., Shi C., Gurbaxani V. Investigating the risk-return relationship of information technology investment: Firm-level empirical analysis. Management Sci. (2007) 53(12):1829–1842LinkGoogle Scholar
  • Doms M. The boom and bust in information technology investment. FRBSF Econom. Rev. (2004) 4:19–34Google Scholar
  • Doms M. IT investment: Will the glory days ever return? FRBSF Econom. Lett. (2005) 4:25–28Google Scholar
  • Fan J. P. H., Lang L. H. P. The measurement of relatedness: An application to corporate diversification. J. Bus. (2000) 73(4):629–660CrossrefGoogle Scholar
  • Fernandez Z., Nieto M. J. The internet: Strategy and boundaries of the firm. (2005) . Working Paper 05-01, Universidad Carlos III De Madrid, Madrid, SpainGoogle Scholar
  • Fornell C., Mithas S., Morgeson F. V., Krishnan M. S. Customer satisfaction and stock prices: High returns, low risk. J. Marketing (2006) 70(1):3–14CrossrefGoogle Scholar
  • Gurbaxani V., Whang S. The impact of information systems on organizations and markets. Comm. ACM (1991) 34(1):59–73CrossrefGoogle Scholar
  • Hammer M., Champy J.Reengineering the Corporation: A Manifesto for Business Revolution (1993) (HarperBusiness, New York) Google Scholar
  • Hitt L. M. Information technology and firm boundaries: Evidence from panel data. Inform. Systems Res. (1999) 10(2):134–149LinkGoogle Scholar
  • Hitt L. M., Brynjolfsson E. Productivity, business profitability, and consumer surplus: Three different measures of information technology value. MIS Quart. (1996) 20(2):121–142CrossrefGoogle Scholar
  • Hoskisson R. E., Hitt M. A., Johnson R. A., Moesel D. D. Construct validity of an objective (entropy) categorical measure of diversification strategy. Strategic Management J. (1993) 14(3):215–235CrossrefGoogle Scholar
  • Hunter S., Kobelsky K., Richardson V. J. Volatility and dispersion of earnings following IT expenditures. (2003) . Working Paper 4318-03, MIT Sloan School of Management, Cambridge, MACrossrefGoogle Scholar
  • Jensen M. C., Meckling W. H. Theory of the firm: Managerial behavior, agency costs and ownership structure. J. Financial Econom. (1976) 3(4):305–360CrossrefGoogle Scholar
  • Jones G. R., Hill C. W. L. Transaction cost analysis of strategy-structure choice. Strategic Management J. (1988) 9(2):159–172CrossrefGoogle Scholar
  • Liu Y., Ravichandran T. A comprehensive investigation on the relationship between information technology investments and firm diversification. Inform. Tech. Management (2008) 9:169–180CrossrefGoogle Scholar
  • Loveman G. Diamonds in the data mine. Harvard Bus. Rev. (2003) 81(5):109–113Google Scholar
  • Malone T. W., Yates J., Benjamin R. I. Electronic markets and electronic hierarchies. Comm. ACM (1987) 30(6):484–497CrossrefGoogle Scholar
  • Mata F. J., Fuerst W. L., Barney J. B. Information technology and sustained competitive advantage: A resource-based analysis. MIS Quart. (1995) 19(4):487–505CrossrefGoogle Scholar
  • Melville N., Kraemer K. L., Gurbaxani V. Review: Information technology and organizational performance: An integrative model of IT business value. MIS Quart. (2004) 28(2):283–322CrossrefGoogle Scholar
  • Mithas S., Krishnan M. S., Fornell C. Effect of information technology investments on customer satisfaction: Theory and evidence. (2005) . Working Paper 971, Ross School of Business, AnnArbor, MI. http://ssrn.com/abstract=901643Google Scholar
  • Mithas S., Tafti A., Bardhan I., Goh J. M. Resolving the profitability paradox of information technology: Mechanisms and empirical evidence. (2008) . Working paper, University of Maryland, Hyattsville, MDGoogle Scholar
  • Montgomery C. A. Corporate diversification. J. Econom. Perspect. (1994) 8(3):163–178CrossrefGoogle Scholar
  • Oviatt B. M., Bauerschmidt A. D. Business risk and return: A test of simultaneous relationships. Management Sci. (1991) 37(11):1405–1423LinkGoogle Scholar
  • Palepu K. Diversification strategy, profit performance and the entropy measure. Strategic Management J. (1985) 6:239–255CrossrefGoogle Scholar
  • Porter M. E., Millar V. E. How information gives you competitive advantage. Harvard Bus. Rev. (1985) 63(4):149–160Google Scholar
  • Powell T. C., Dent-Micallef A. Information technology as competitive advantage: The role of human, business, and technology resources. Strategic Management J. (1997) 18(5):375–405CrossrefGoogle Scholar
  • Rai A., Patnayakuni R., Patnayakuni N. Technology investment and business performance. Comm. ACM (1997) 40(7):89–97CrossrefGoogle Scholar
  • Ravichandran T., Lertwongsatien C. Effect of information systems resources and capabilities on firm performance: A resource-based perspective. J. Management Inform. Systems (2005) 21(4):237–276CrossrefGoogle Scholar
  • Ray G., Xue L., Gu L. B., Konana P. C. Asset characteristics and the impact of IT on firm scope and performance. (2006) . Working paper, McCombs School of Business, University of Texas at Austin, AustinGoogle Scholar
  • Schmidt G. HP's da Vinci project: New order fulfillment process for HP's North American distribution organization. (1997) . Case study, Stanford Global Supply Chain Management Forum, Stanford, CAGoogle Scholar
  • Setia P., Vickery S. K., Droge C., Sambamurthy V. The direct and indirect effects of integrative information technologies on overall firm performance in manufacturing firms. (2005) Presentation, The Workshop on Information Systems and Economics (WISE)Irvine, CAGoogle Scholar
  • Steiner T. D., Teixeira D. B.Technology in Banking (1990) (Irwin Professional Publishing, Burr Ridge, IL) Google Scholar
  • Tanriverdi H., Ruefli T. W. The role of information technology in risk/return relations of firms. J. Assoc. Inform. Systems (2004) 5(11):421–447Google Scholar
  • Wernerfelt B. A resource-based view of the firm. Strategic Management J. (1984) 5(2):171–180CrossrefGoogle Scholar
  • Zellner A. An efficient method of estimating seemingly unrelated regressions and tests for aggregation bias. J. Amer. Statist. Assoc. (1962) 57(298):348–368CrossrefGoogle Scholar
  • Zuboff S.In the Age of the Smart Machine: The Future of Work and Power (1988) (Basic Books, New York) Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.