Earticle

초록

영어

While several studies have addressed the association of IT with firm profitability, their focus has largely been on the contemporaneous impacts of IT. Moreover, many of them have shown either negative or no impacts of IT on firm profitability, therefore questioning the strategic value of IT. We examine the impacts of firm-specific factors including IT-related intangibles on profit and its persistence by analyzing the dynamic behavior of abnormal profits in heterogeneous competitive environments. Using a large firm-level data spanning from 1991 to 2006, we find that firms that are classified as IT innovators tend to create more IT-related intangibles and tend to be more productive. Importantly, IT innovators are able to achieve higher profits through these IT-related intangibles and productivity gains. However, the magnitude and persistence of the impacts vary with the degree of competition. In more competitive environments, IT innovators are likely to earn higher profits from accrued IT-intangibles while improved productivity gains are competed away. Our results also suggest that abnormal profits erode more quickly to competitive rates in more competitive environments. Overall, our study sheds light on the roles of IT-related intangibles and productivity gains accrued from IT innovations and competition in explaining profit persistence.

목차

Abstract
 1. Introduction
 2. Literature review
 3. Model description
  3.1. Tobin’s Q and IT-related intangibles
  3.2. The dynamic profit function
 4. Data
 5. Results
 6. Conclusion
 References

저자

• Young Bong Chang [ Faculty of Management University of British Columbia ]

참고문헌