Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

The Value Relevance of Announcements of Transformational Information Technology Investments

Bruce Dehning, Vernon J. Richardson and Robert W. Zmud
MIS Quarterly
Vol. 27, No. 4 (Dec., 2003), pp. 637-656
Stable URL: http://www.jstor.org/stable/30036551
Page Count: 20
  • Read Online (Free)
  • Download ($14.00)
  • Subscribe ($19.50)
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
The Value Relevance of Announcements of Transformational Information Technology Investments
Preview not available

Abstract

In this paper, we examine the influence of IT strategic role to extend the findings of Im et al. (2001), Chatterjee et al. (2002) and Dos Santos et a!. (1993). Specifically, we demonstrate that IT strategic role can explain how IT investments in each of the IT strategic roles might affect the firm's competitive position and ultimately firm value. We find positive, abnormal returns to announcements of lT investments by firms making transformative IT investments, and with membership in industries with transform IT strategic roles. The results of previous research are not found to be significant when IT strategic role is included as an explanatory variable. These results provide support for the value of capturing the IT strategic role of a firm's IT-related competitive maneuvering in studies striving to understand the conditions under which IT investments are likely to produce out-of-the-ordinary, positive returns.

Page Thumbnails

  • Thumbnail: Page 
637
    637
  • Thumbnail: Page 
638
    638
  • Thumbnail: Page 
639
    639
  • Thumbnail: Page 
640
    640
  • Thumbnail: Page 
641
    641
  • Thumbnail: Page 
642
    642
  • Thumbnail: Page 
643
    643
  • Thumbnail: Page 
644
    644
  • Thumbnail: Page 
645
    645
  • Thumbnail: Page 
646
    646
  • Thumbnail: Page 
647
    647
  • Thumbnail: Page 
648
    648
  • Thumbnail: Page 
649
    649
  • Thumbnail: Page 
650
    650
  • Thumbnail: Page 
651
    651
  • Thumbnail: Page 
652
    652
  • Thumbnail: Page 
653
    653
  • Thumbnail: Page 
654
    654
  • Thumbnail: Page 
655
    655
  • Thumbnail: Page 
656
    656