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Title: Portfolio of IT investment and organisational performance. Moderating role of decentralised decision making

Authors: Amri Mohamad; Pingli Li; Nafis Alam; Yuserrie Zainuddin

Addresses: Faculty of Accountancy, MARA University of Technology Kelantan Campus, Bukit Ilmu, 18500 Machang, Kelantan, Malaysia ' Southampton Business School, University of Southampton, Highfield Campus, SO17 1BJ, UK ' Henley Business School, University of Reading Malaysia, 79200 Iskandar Puteri, Johor, Malaysia; Nottingham University Business School, University of Nottingham Malaysia Campus, 43500 Semenyih, Selangor, Malaysia ' Universiti Malaysia Pahang, 26300 Gambang, Kuantan, Malaysia

Abstract: This research was carried out mainly to find out the results on the relationship between transactional, strategic and informational IT investments with the multidimensional performance measurement in the electrical and electronic manufacturing setting in Malaysia. The second research objective was to study the moderating effects of decentralised decision making on the relationship between transactional, strategic and informational IT investment with firm performance. The data were collected from 74 electrical and electronic manufacturing firms in Malaysia. The results suggest that transactional IT investment has a positive and significant relationship with financial performance, but not with customer performance. The strategic IT investment has no significant relationship with any of the perspectives. Informational IT has a significant relationship with the internal business process perspective only. Although decentralised decision making was theoretically explained as a moderator, statistical interaction effects suggested otherwise.

Keywords: multidimensional performance measurement; transactional IT investment; strategic IT investment; informational IT Investment; decentralised decision making; moderating effects; productivity paradox.

DOI: 10.1504/IJBIS.2020.104803

International Journal of Business Information Systems, 2020 Vol.33 No.1, pp.48 - 79

Received: 12 May 2017
Accepted: 20 Feb 2018

Published online: 30 Jan 2020 *

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