Investments in Information Technology, Organizational Slack, and Economic Productivity

CONF-IRM 2018 Proceedings. 31. https://aisel.aisnet.org/confirm2018/31

The University of Auckland Business School Research Paper Series

Posted: 10 Feb 2022

See all articles by Xiaoxuan Ma

Xiaoxuan Ma

University of Sydney

Zhenning Wang

University of Nottingham Ningbo China

Kevin Dow

University of Auckland Business School

Wangyue Zhou

Zhejiang Gongshang University

Date Written: 2018

Abstract

From a resource-based view (RBV), information technology (IT) investments affect organizational slack resources and therefore influence firm economic productivity. In this study, we develop a framework and test the relationship between economic productivity and organizational slack through an examination of 9 years financial data of 106 U.S. listed companies. Each variable has been tested for three stages of IT investments. Our results suggest that organizational slack resources increase after IT investments which later are consumed and converted into economic productivity. Full paper available at https://aisel.aisnet.org/confirm2018/31

Suggested Citation

Ma, Xiaoxuan and Wang, Zhenning and Dow, Kevin and Zhou, Wangyue, Investments in Information Technology, Organizational Slack, and Economic Productivity (2018). CONF-IRM 2018 Proceedings. 31. https://aisel.aisnet.org/confirm2018/31, The University of Auckland Business School Research Paper Series, Available at SSRN: https://ssrn.com/abstract=4024797

Xiaoxuan Ma (Contact Author)

University of Sydney ( email )

University of Sydney
Sydney, NSW 2006
Australia

Zhenning Wang

University of Nottingham Ningbo China

199 Taikang East Road
Ningbo, 315100
China

Kevin Dow

University of Auckland Business School ( email )

12 Grafton Rd
Private Bag 92019
Auckland, 1010
New Zealand

Wangyue Zhou

Zhejiang Gongshang University ( email )

Zhejiang
China

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