Title: Assessing the impact of information technology on firm performance using canonical correlation analysis

Authors: Abbas Keramati, Iman Behmanesh

Addresses: Department of Industrial Engineering, College of Engineering, University of Tehran, P.O. Box 113654563, Tehran, Iran. ' Department of Industrial Engineering, College of Engineering, University of Tehran, P.O. Box 113654563, Tehran, Iran

Abstract: During the recent years, there have been a lot of researches trying to show the positive or lack of correlation between information technology (IT) and firm performance. Researchers and practitioners everywhere have applied different approaches and criteria to do so. In this paper, the effects of IT usage on 200 Iranian car part suppliers are analysed. Canonical correlation analysis reveals a statistically significant relationship between one set of variables consisting seven indices of IT usage, and the other set of variables consisting three company performance indices. Accordingly, the results show that correlation between company performance and the degree of use of IT in the planning, administration and pecuniary affairs is stronger than the other aspects of IT usage.

Keywords: ICT usage; information technology; communications technology; firm performance; canonical correlation analysis; CCA; Iran; automobile industry; car parts; motor vehicles; company performance indices; planning; administration; pecuniary affairs; automotive components; component suppliers.

DOI: 10.1504/IJBIS.2010.035743

International Journal of Business Information Systems, 2010 Vol.6 No.4, pp.497 - 513

Published online: 03 Oct 2010 *

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