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Investigating the Impact of Corporate IT Investment Strategy on Business Performance Using an Intellectual Capital Framework

In recent years, companies are facing fierce competition and fast advancement of information technology (IT); thus, how to enhance corporate performance and obtain competitive advantage through IT investment in this dynamic environment has become an important issue for academia and businesses. Investigating the impact of corporate IT investment strategy on business performance need an effective performance measurement tool that help organization on the correct objective. We suggested that evaluate business performance through human development, customer management and benchmark management could improve the shortcomings of traditional evaluation tools. This paper referred intellectual capital and included a review of the latest literature on performance measurement and consolidated these findings, examining the interrelationships and the interaction effects among intellectual capital components and organizational performance.
Based on intellectual capital and complementary assets theory, we proposed a model with regard to how IT investment strategy impact to business performance. This paper used data envelopment analysis comparing the efficiency of IT investment in information-intensive service industries and used path analysis investigating the relationship of measurement indicators; these analysis is used as the basis of research model of this paper. Since there is time delay in the transfers from IT investment to the market performance, the impact of IT investment on market performance is a problem involving dynamic complexity. Thus, from the perspective of long-term, non-linear, closed-loop causality, this study developed a computerized system dynamics model to analyze the dynamic relationships between corporate IT investment strategy and business performance in information-intensive service industries. The results of this study provided several important implications for IT investment management research and practice. The paper helps managers understand better the dynamic interrelationships in organization design and, in particular, the interrelationships between an organization¡¦s profitability (both short-term and long-term) and investment in human competence, internal process and innovation and relationship building measures with customers. The proposed system dynamics model also provided IT managers with a useful decision support tool for evaluating different IT investment strategies.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0120110-095106
Date20 January 2010
CreatorsLiao, Yi-Wen
ContributorsLiang-Cheng Chang, Wei-yang Wang, Yi-Wen Fan, Yi-Shun Wang, Tung-Ching Lin, Yi-Ming Tu
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0120110-095106
Rightswithheld, Copyright information available at source archive

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