Article

International diversification and firm performance: Role of information technology investments

School of Business & Economics, Indiana University South Bend, South Bend, IN 46634, United States; Mendoza College of Business, University of Notre Dame, Notre Dame, IN 46556-5646, United States; Division of Management, Price College of Business, University of Oklahoma, Norman, OK 73019-0405, United States
Journal of World Business 01/2007; DOI: 10.1016/j.jwb.2007.02.004

ABSTRACT The empirical studies to date have not found consistent support for the performance advantages of international diversification. One reason suggested by internalization theory is that leveraging firm specific assets is critical for enhancing performance from international diversification. We develop and empirically test the hypothesis that investment in information technology helps in leveraging firm specific assets across country borders and thereby contributes to enhanced performance from international diversification.

1 Bookmark
 · 
101 Views
  • Source
    [Show abstract] [Hide abstract]
    ABSTRACT: This paper analyzes the determinants of bank acquisitions both within and across countries in the EU-25 over the period 1997–2004. Our results suggest poorly managed banks (high cost to income) and larger banks are more likely to be acquired by other banks in the same country. The probability of being a target in a cross-border deal is larger for banks that are quoted in the stock market. Finally, banks operating in more concentrated markets are less likely to be acquired by other banks in the same country but are more likely to be acquired by banks in other EU-25 countries.
    Journal of Banking & Finance. 02/2008;
  • Source
    [Show abstract] [Hide abstract]
    ABSTRACT: The impact of IT usage on performance and other organisation's outputs is an important issue for both practitioners and academics. Evidence shows that despite a vast percentage of firm's budget which has spent on IT is continuing increasingly, there are some failures of firms in obtaining the benefits of these expenditures within expected period. To solve this problem, managers have to consider complementary investments. In this paper a decision support system is developed for prioritising investments on the information technology (IT) and its complementary investment using data of 102 car part suppliers in Iran. This software is developed using an artificial neural network and results are validated finally. One of the main specifications of this DSS is investigating on IT aspects at the firm level, which can help top management during decision making process to allocate budget properly in the most significant aspects of IT investment inside their own company.
    IJBIS. 01/2012; 9:149-168.
  • Source
    [Show abstract] [Hide abstract]
    ABSTRACT: In the 21 st century, information technology (IT) is seen as a tool that assists companies to perform more efficiently and effectively. However, many studies have posed the question whether the benefits outweigh the investments. The issue is more serious in the construction industry where there are factors that limit performance such as inadequate training, ineffective use of IT infrastructures, maintenance inadequacies and less than positive staff perceptions concerning IT implementations by management. Malaysia is a rapidly developing country and IT integration has to be efficient to help accelerate development. This study aims to analyze IT effectiveness in construction companies focusing on small and medium contracting enterprises (SMCE). The study reviewed literature related to IT implementation and its services in the construction industry with the objective of highlighting the appropriate conceptual IT effective model in the context of the Malaysian construction industry. The review was also performed to identify important factors attributed to performance and hindrances of performance of Malaysian construction companies. The paper concludes with tentative implications for IT implementation with the necessity to comprehend operational and process-level changes as well as impact isolation of specific IT application types concerning firm's dynamic capabilities, which mediate IT impacts on firm performance.
    Scientific research and essays 08/2012; 7(38):3223-3242. · 0.32 Impact Factor

Full-text (2 Sources)

View
961 Downloads
Available from
May 21, 2014