Possible explanations for decreasing it association

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possible explanations for decreasing IT association with firm performance: 1) as competition in industry is increasing and CEOs are paying attention to IT, the strategic value declines = productivity not directly connected with performance 2) IT influences can be varying according to right use (different because of variation in IT capabilities) additional test regarding initiative types: new or redeveloped systems have a positive association with Tobin’s w at 5 percent significance level = greater performance 6.1 THEORETICAL IMPLICATIONS • IT is becoming more embedded in business processes does not mean that it is in fact commoditized = competitive advantage can be built from it as markets become more competitive • CEO’s perceptions of IT are a necessary but not sufficient condition to improve performance CEOs need contextually appropriate strategies for IT and management 6.2 METHODOLOGICAL IMPLICATIONS • CEO’s Letters to Shareholders can be used as tool to investigate their perspectives on firm strategy • further advances in semantic analysis could provide avenue to investigate 6.3 MANAGERIAL IMPLICATIONS • IT is becoming less-prominent component of corporate strategy than it has been in past: CIOs, IT directors, and others within IT function need to educate CEO about strategic importance of IT • companies that feature IT as component of corporate strategy see better returns on assets and better shared values: allows IT leaders to approach CEO for investment in IT 6.4 LIMITATIONS & FUTURE RESEARCH • only investigated healthcare industry: IT may vary across industries • only conducted quantifications of CEOs’ perspectives on IT: future whether positive / negative • other levels of analysis could be examined + other dependent variables of measuring performance 7. CONCLUSION • IT is among most important information that executives want to communicate to the outside • researchers and practitioners should realise that embeddedness of IT in business processes reveals a host of ways in which IT can continue to be leveraged to gain competitive advantage main results:
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Zoe Zwiebelmann Maastricht University IM Session 2 1) emphasis placed on IT by CEO will not decrease over time, rather the opposite as many IT systems only show effect after some years 2) CEO’S perspective on strategic importance of IT is not positively associated with firm performance
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