Returns to IT Excellence: Evidence from Financial Performance Around Information Technology Excellence Awards

International Journal of Accounting Information Systems, Vol. 12, pp. 189-205, 2011

39 Pages Posted: 28 Oct 2011 Last revised: 20 Jul 2014

See all articles by Adi Masli

Adi Masli

University of Arkansas - Sam M. Walton College of Business

Vernon J. Richardson

University of Arkansas at Fayetteville

Juan Manuel Sanchez

University of Texas at San Antonio

Rod Smith

Cal State University Long Beach

Date Written: October 28, 2010

Abstract

The resource-based view has been used in IT business value research to theorize and investigate the impact of unique IT capabilities on sustainable competitive advantages. Prior research has empirically documented a positive association between superior IT capabilities and firm performance. However, such analyses have focused on IT capabilities of firms in the early 1990s. In this study, we examine the impact of superior IT capabilities on firm performance over the 1988-2007 period, which allows us to consider the structural shifts in the return of IT capability over time. Our results suggest that firms with superior IT capabilities are able to attain higher firm performance levels until 1999. However, such performance advantage disappears in the post-1999 time period. We also find that a subset of firms that sustain high levels of IT capabilities during the period 1988 to 2007 continue to perform better than their peers. We conclude that managers are able to achieve superior firm performance if they are able to maintain high levels of IT capability over time.

Keywords: Information Technology, IT Excellence, Financial Performance

JEL Classification: M13, M41, O14

Suggested Citation

Masli, Adi and Richardson, Vernon J. and Sanchez, Juan Manuel and Smith, Rodney E., Returns to IT Excellence: Evidence from Financial Performance Around Information Technology Excellence Awards (October 28, 2010). International Journal of Accounting Information Systems, Vol. 12, pp. 189-205, 2011, Available at SSRN: https://ssrn.com/abstract=1949926

Adi Masli

University of Arkansas - Sam M. Walton College of Business ( email )

Fayetteville, AR 72701
United States

Vernon J. Richardson

University of Arkansas at Fayetteville ( email )

401 WCOB
Fayetteville, AR 72701
United States

Juan Manuel Sanchez (Contact Author)

University of Texas at San Antonio ( email )

One UTSA Circle
San Antonio, TX 78249
United States

Rodney E. Smith

Cal State University Long Beach ( email )

Long Beach, CA 90840
United States
562-985-5421 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
135
Abstract Views
873
rank
239,629
PlumX Metrics