Investigating the effects of information technology investment on the performance of telecommunication companies
by Ahmad Sobhani; Sina Shokoohyar; Anae Sobhani
International Journal of Applied Decision Sciences (IJADS), Vol. 14, No. 3, 2021

Abstract: Information technology (IT) has a significant potential in improving the structure of organisations and the quality of companies' performance. However, the inconsistent relationships between IT investment and the performance of an organisation is the main issue which can result in failing of a successful implementation of IT. In this paper, an econometric model is developed to evaluate the possible effects of IT investment on the productivity of a telecommunication company. The results show a positive contribution of IT capital and labour investments on the company's productivity and financial performance indexes. Findings also approve that the current IT investment has a positive impact on the company's revenue generation even after deducting depreciation expenses. This effect is less than non-IT investments. According to statistical analysis, while there is a strong relation between total factor productivity of the company and its IT capital the relation between labour productivity and the IT capital is moderate.

Online publication date: Wed, 12-May-2021

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 Applied Decision Sciences (IJADS):
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