Investigating the influence of information technology capability on risk and returns: a firm-level empirical analysis
by Bharat Arora; Zillur Rahman
International Journal of Business Excellence (IJBEX), Vol. 13, No. 1, 2017

Abstract: Although considerable research has been done to examine the impact of IT on productivity and profitability of firms, the influence of IT on firm risk has not received the research attention that it deserves, and is still an under-researched area. The purpose of this study is to assess the influence of IT capability on risk-return relationship of firms that operate in India. Comparing the financial risk and returns of 87 firms, from 15 different industries, over a period of six years, we found a positive and significant association between superior IT capability and firm risk. This research also suggests that superior IT capability is not associated with improved financial performance of firms. A surprising finding of this study is that even post-implementation, IT initiatives increase firm risk. Prior studies carried out in the context of developed nations have indicated that post-implementation, IT initiatives reduce firm risk. This difference (of post-implementation risk of IT initiatives) between developed economies and fast growing emerging economies like India provides a fertile ground for future research.

Online publication date: Mon, 14-Aug-2017

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Excellence (IJBEX):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com