The impact of managing IT on business-IT alignment and firm performance: an empirical study

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aboobucker Ilmudeen
Keyword(s):  
Firm Performance ◽  
Study Finding ◽  
Strong Impact ◽  
Business Managers ◽  
It Investment ◽  
Content Type ◽  
It Alignment ◽  
Business It Alignment ◽  
The Impact ◽  
Practical Implications

Purpose Though prior studies have attempted to explore the various effects of managing information technology (IT) investment on firm performance, the mechanism through which management of IT impact on firm performance rests less clear. The purpose of this study is to examine the impact of managing IT and business-IT alignment on firm performance. Design/methodology/approach Drawing on the resource-based theory and process theory, this study examines how managing IT impacts business-IT alignment and firm performance. The primary survey of 182 responses from IT and business managers from Sri Lanka was empirically examined. Findings The findings reveal that managing IT has a positive and strong impact on business-IT alignment and firm performance. Further, business-IT alignment partially mediates between managing IT investment and firm performance relationships. Research limitations/implications Today, businesses have invested a massive amount of money in IT investment, and the return on this investment is always a serious concern for managers and industry practitioners. This study finding proposes meaningful insights on managing IT, business-IT alignment and firm performance. Originality/value This study opens up the black box on the above nomological linkage and contributes to the literature by extending the theoretical lenses while suggesting insightful and practical implications.

The Role of IT Governance and Managing IT Investment on Firm Performance

2021 ◽  
pp. 104-120
Author(s):  
Aboobucker Ilmudeen
Keyword(s):  
Firm Performance ◽  
It Governance ◽  
It Investment ◽  
It Alignment ◽  
Governance Practices ◽  
Performance Context ◽  
Business It Alignment ◽  
Role Of It ◽  
It Practices

Although the multifaceted effects of managing or governing IT have been taken into consideration in both practice and theoretical debate, the mechanism through which these bring firm performance is yet unclear and limited. Drawing on the resource-based theory and the process theory, this chapter aims to systematically review the antecedents of business-IT alignment on the firm performance context. The findings of this study show that the business-IT alignment is derived from IT governance practices and managing IT investment to achieve firm performance. This study proposes that the firm performance cannot be attained by merely investing in IT; instead, firms should focus on effective management of IT practices and strategically align their business and IT strategies.

Increasing the impact of SHRM on organizational performance

2019 ◽  
Vol 27 (5) ◽  
pp. 7-8
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Design Methodology ◽  
Reading Time ◽  
Content Type ◽  
Pertinent Information ◽  
The Impact ◽  
Practical Implications ◽  
Overall Effectiveness

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The role of HRM is increasingly being viewed in strategic as well as functional terms. The impact of SHRM on firm performance is also determined by factors in its internal and external contexts. Balance between these contextual dimensions and input from various actors in the organization can help increase the overall effectiveness of a SHRM system. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Measuring the impact of crises in the horticultural sector: the case of Spain

2019 ◽  
Vol 121 (5) ◽  
pp. 1050-1063 ◽  
Author(s):  
Juan Carlos Pérez-Mesa ◽  
María del Mar Serrano-Arcos ◽  
Raquel Sánchez-Fernández
Keyword(s):  
Empirical Analysis ◽  
Critical Role ◽  
Point Of View ◽  
Strong Impact ◽  
Short Term ◽  
Content Type ◽  
On Demand ◽  
Demand Models ◽  
The Impact ◽  
Practical Implications

PurposeThe purpose of this paper is to review the literature on image crises in the food industry as well as provide a diachronic analysis to distinguish between the varying types of crises that played a critical role in the horticultural sector in recent decades, focussing on the particular case of Spain as the largest horticultural exporter in Europe. This research also analyses the economic impact of these crises upon demand.Design/methodology/approachAn empirical analysis has been conducted using inverse demand models to determine the prospective impact on demand of the image crises in the main European destination markets.FindingsThe empirical analysis reveals an immediate impact upon demand (imports) in the short term. Sector crises invariably have one or many “explosion” points when they reach the public sphere. These events reduce demand among European consumers, ultimately leading to a decrease in imported goods. The tested models revealed considerably significant losses that subsequently reduce annual exports by more than 3 per cent. The analysis also reveals strong effects of complementarity and substitution among the various products that comprise the horticultural supply.Research limitations/implicationsThis study has not taken into account several movements that have also affected the horticultural sector, such as “anti-consumption” and boycotts. Empirical results reveal a strong impact of image crises on demand (imports) in the short term. Consequently, there is an evident need to undertake actions, managed from the supply origin, that reach the consumer and effectively re-establish the prestige of the Spanish production system.Practical implicationsThis paper highlights the importance of the mass media in consumer attitudes and perceptions, and the need to create channels of direct communication to break the information asymmetry between production and consumption areas.Originality/valueThis paper sheds new light on the literature of image crises. The findings of this research have contributed to greater knowledge of how image crises influence demand. From the point of view of management, these results can have practical implications for the highly competitive sector of horticultural production.

scholarly journals Human resource management: the promise, the performance, the consequences

2016 ◽  
Vol 3 (2) ◽  
pp. 181-190 ◽  
Author(s):  
Chris Brewster ◽  
Paul N. Gooderham ◽  
Wolfgang Mayrhofer
Keyword(s):  
Firm Performance ◽  
Journal Articles ◽  
Long Term Effects ◽  
Cross Sectional ◽  
Content Type ◽  
Global Issues ◽  
The Impact ◽  
Practical Implications ◽  
Cross National

Purpose – The dominant focus of HRM research has been that of “strategic HRM”, that is a focus on the impact of HRM on firm performance. The authors argue that not only are the cumulative results of this “dominant research orthodoxy” disappointing in terms of their external validity, but also they are of limited practical value. Further, it has failed not only in terms of its narrow firm performance-oriented agenda, but also the tenets of its agenda have contributed to serious levels of employee dissatisfaction and to the failure to deal with pressing global issues. The paper aims to discuss these issues. Design/methodology/approach – In order to assess the contribution of the dominant research orthodoxy the authors analyse the 16 most cited journal articles in the field of HRM. Findings – The authors find a predominance of US-centric studies and therefore a questionable cross-national generalizability of the dominant research orthodoxy. The use of cross-sectional data means that long-term effects cannot be gauged. The authors observe a lack of consensus on how to operationalize HRM and firm performance. National context is generally absent. Practical implications – The authors show that for HRM to realize its potential for governments, media, or philanthropic agencies, HRM must abandon its restricted scope and mono-dimensional sources of inspiration. Originality/value – The authors not only point to the shortcomings of the dominant research orthodoxy within HRM, but the authors point to how HRM could become significantly more “centre-staged” by addressing the actors searching for contributions to the big questions of the world – the governments, media, and philanthropic agencies.

Does R&D create additional business value through IT?

2017 ◽  
Vol 11 (2) ◽  
pp. 194-208 ◽  
Author(s):  
Yu Wang ◽  
Tie-nan Wang ◽  
Xin Li
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Business Value ◽  
It Investment ◽  
Content Type ◽  
Chinese Business ◽  
Fixed Effects Regression ◽  
The Impact ◽  
D Investment ◽  
It Payoff

Purpose R&D indicates absorptive capacity, which may affect IT payoff. The purpose of this paper is to examine how R&D investment affects the relation between IT investment and firm performance and under what circumstances R&D intensity is more beneficial to IT returns. Such study has been lacking in R&D research and IT payoff literature. Design/methodology/approach A conceptual model for linking IT investment, R&D investment, environmental dynamism and firm performance was developed and tested by data collected from Chinese listed firms from 2007 to 2013, using fixed effects regression model. Findings The results show positive moderating effects of firm R&D investment and government R&D subsidies on the relation between IT investment and firm performance. Furthermore, the impact of firm R&D investment on IT payoff is stronger for firms in more dynamic environments. The findings suggest that R&D investment creates additional business value through interactions with IT, and complementarities between R&D and IT, as manifested in their interaction effect on firm performance vary across industry sectors. Research limitations/implications This paper indicates the importance of complementarities between R&D and IT, which should prove helpful to researchers and practitioners engaged in Chinese business. Originality/value This paper presents one of the first attempts at examining the moderating effect of R&D investment on the relation between IT investment and firm performance. Especially this study helps to understand under what circumstances R&D investment is more or less likely to be beneficial to IT returns.

The relationship between ownership structure and firm financial performance

2018 ◽  
Vol 25 (1) ◽  
pp. 319-333 ◽  
Author(s):  
Tariq Tawfeeq Yousif Alabdullah
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Emerging Economies ◽  
Ownership Structure ◽  
Foreign Ownership ◽  
Fiscal Year ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Impact ◽  
Practical Implications

Purpose Previous studies that dealt with corporate governance have witnessed gradually significant growth that created some new trends. The purpose of this paper is to be involved in such trends through examining the link between ownership structure as one of the important corporate governance mechanisms and firm performance in Jordan as one of emerging economies. Design/methodology/approach The current study used the multiple regression method to analyze available data for non-financial firms listed in the Amman Stock Exchange for the fiscal year 2012. Findings The findings revealed that managerial ownership has a positive impact on performance. On the other hand, the findings surprisingly showed no evidence to support the impact of foreign ownership on performance. Moreover, there is a significant evidence to support the fact that company size has no impact on firm performance. The findings also revealed that industry type has no impact on firm performance. Practical implications The practical implications of the current study demonstrated that good corporate governance is imperative to all organizations and must be encouraged for the interest of all stakeholders. Unlike the majority of the previous studies, the current study unexpectedly found that foreign ownership is not significantly contributing to the firm performance. Thus, Jordanian Government and other related/responsible parties should formulate policies for the foreign investors. Originality/value Interestingly, from developed and developing countries perspective, the study is the first of its kind that exclusively chose the mechanisms of ownership structure in its relationship with firm performance represented by market share, where no previous study has tested foreign ownership in such relationship. In that, this study is the first study in emerging economies to investigate such a link. Such new insights on this relationship by current study provide helpful information that is of great value to the government, academics, policy makers, and other stakeholders.

Institutional blockholders and the variability of firm performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peng Huang ◽  
Yue Lu
Keyword(s):  
Firm Performance ◽  
Stock Returns ◽  
Time Variability ◽  
Content Type ◽  
Performance Variability ◽  
Risk Appetite ◽  
Underlying Mechanisms ◽  
The Impact ◽  
Practical Implications ◽  
Different Levels

PurposeWe examine the effect of institutional blockholders on the variability of firm performance.Design/methodology/approachWe use OLS regression models to estimate the effect of institutional blockholders on within-firm, over-time variability of firm performance.FindingsWe find that firms with more institutional blockholders experience less variable firm performance. In particular, more institutional blockholders are associated with less variability of annual stock returns, ROA and the market-to-book ratio. We further explore several underlying mechanisms through with institutional blockholders reduce firm performance variability. We find that more institutional blockholders are associated with less variable capital expenditures and R&D investments, and less frequent acquisition activities.Research limitations/implicationsA limitation of this paper is that our sample period only covers 1996–2006. Future studies can extend our research to a more recent period (e.g. 2009–2019) to test whether our findings remain valid in other periods.Practical implicationsWe document a significant relation between institutional blockholders and firm performance variability in this paper. However, we do not make any judgment as to whether firms should increase their institutional blockholders as it is unclear whether the caused reduction in risk-taking is socially efficient. We argue that the value implication of institutional blockholders depends on the existing blockholder structure and the different levels of risk appetite between the CEO and shareholders. Thus, the decision on the increase or decrease of institutional blockholders should be carefully made based on a firm’s specific characteristics.Originality/valueThis paper is a first study which examines the impact of the presence of institutional blockholders on the variability of firm performance, while most prior studies focus on the stock ownership of institutional blockholders and examine its impact on the level of firm performance.

Making dairy supply chains robust against corruption risk: a systemic exploratory study

2019 ◽  
Vol 30 (4) ◽  
pp. 1078-1100
Author(s):  
Xiaojing Liu ◽  
Tiru Arthanari ◽  
Yangyan Shi
Keyword(s):  
Supply Chain ◽  
External Factor ◽  
Business Managers ◽  
Negative Effects ◽  
Content Type ◽  
Systemic Model ◽  
Modifying Effect ◽  
Supply Chain Risks ◽  
The Impact ◽  
Practical Implications

Purpose To improve robustness of a dairy supply chain (SC) against corruption, the purpose of this paper is to propose a systemic model of a corruption impacted dairy SC, exposing relationships among SC operations, risks and the impact of corruption. Design/methodology/approach Cases from the dairy industry in New Zealand (NZ) are used for thematic analysis of interview data collected from participants at senior levels of NZ dairy firms. Based on these and other inputs from literature, a systemic model is built subsequently. Findings Mitigating certain risks can significantly alleviate the impact of corruption, an external factor, on supply chain performance (SCP). The causal loop diagram (CLD) developed here brings out the modifying effect of corruption on dairy risks and SCP. Practical implications The illustration of the CLD helps business managers better understand the interactions among risk variables and explains the systemic reasons for SC vulnerability. Originality/value This is the first paper to construct a holistic system to comprehensively reveal the interactions of supply chain risks (SCRs) and the impact of corruption. Also, by utilizing SCR interactions, this study indicates a pathway to mitigate the negative effects of corruption through improving dairy SC robustness.

Breadth and frequency of marketing metric reporting and firm performance in the Middle East

2019 ◽  
Vol 11 (4) ◽  
pp. 883-893
Author(s):  
John J. Sailors
Keyword(s):  
Firm Performance ◽  
Middle East ◽  
Online Survey ◽  
Middle Eastern ◽  
Marketing Metrics ◽  
Content Type ◽  
Perceived Performance ◽  
Reporting Frequency ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to explore a host of issues related to the use of marketing metrics and firm performance in the context of the Middle East. Specifically, it seeks to explore which marketing metrics relate to perceived performance, to understand how frequency of metric reporting impacts perceived performance, to identify the impact that marketing dashboards have on perceived firm performance and to analyze how measurement ability relates to perceived performance. Design/methodology/approach This paper used an online survey administered to marketing managers at firms located in the Middle East. A total of 55 participants provided usable data. Participants provided the frequency at which 71 different marketing metrics are reported by their firms and their assessments of the firm’s performance with respect to sales growth, market share growth, and profitability. In addition, they indicated whether or not a marketing dashboard was used to report these metrics, and if so, how long ago the dashboard had been implemented. They also assessed their firm’s holistic ability to measure and use metrics compared to their competition. Findings As expected, marketers in the Middle East found the marketing metrics examined to vary in their usefulness as judged by their relationship to perceived performance. For those metrics that were perceived to be useful, their utility tended to peak at a moderate level of reporting frequency. These findings also varied by the type of performance considered. The use a marketing metric dashboard did not relate to perceived performance, but the frequency with which the dashboards were reported was found to have a negative linear relationship to perceived performance. Overall, the more capable respondents judged their firms to be with respect to measuring and reporting metrics, the higher their perceived performance. Practical implications This paper offers new insights into the usefulness of a wide variety of marketing metrics to marketers in the Middle East. It also provides guidance on the ideal reporting frequency for those metrics. The findings suggest that marketers in the Middle East should focus on reporting key metrics at an appropriate frequency, regardless of whether or not a dashboard format is used. If a dashboard is used, the results of this paper suggest that care should be taken that it not be reported too frequently. Originality/value This paper contributes to our understanding of how marketing metrics relate to performance. As the first such study undertaken in the context of Middle Eastern marketers, it represents an important replication and extension of previous findings in other contexts.

Do outside directors matter? the impact of prestigious CEOs on firm performance

2017 ◽  
Vol 11 (2) ◽  
pp. 284-302 ◽  
Author(s):  
Liang Zhang ◽  
Zhe Zhang ◽  
Ming Jia ◽  
Yeyao Ren
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Resource Dependence ◽  
Ordinary Least Squares ◽  
Outside Directors ◽  
Data Set ◽  
Ols Regression ◽  
Content Type ◽  
The Impact ◽  
Practical Implications

Purpose The effect of prestigious CEOs on firm performance is not clear. By integrating resource dependence and agency theories, this paper aims to focus on how prestigious CEOs affect firm performance and how informal relations between the CEO and outside directors affect agency costs and resource benefits associated with prestigious CEOs. Design/methodology/approach The authors use ordinary least squares (OLS) regression to analyze their data set, which is conducted by a sample of 4,226 Chinese listed firms from 2009 to 2013. The authors also use OLS regression to assess the sensitivity and robustness of their findings. Findings The findings indicate that prestigious CEOs are significantly and positively associated with firm performance. Moreover, the authors find the effect of prestigious CEOs on firm performance is more pronounced when prestigious outside directors interact with prestigious CEOs. Guanxi – a Chinese concept similar to camaraderie – attenuates this association, particularly when the CEO and outside directors share the same surname. Research limitations/implications Future research should consider whether there is a mediating link between prestigious affiliates (i.e. CEOs) and firm performance. Practical/implications This paper provides two practical implications. First, China Securities Regulatory Commission policymakers should pay more attention to outside directors’ quality and ability and their informal guanxi with the CEO. Second, prestigious CEOs may also have potential costs. Originality/value This study contributes to corporate governance literature and CEO-board relations literature by shedding light on how resource dependence and agency theories apply to corporate governance.

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