Than average cost ratios of all control firms after

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than average cost ratios of all control firms after adjusting for prior financial performance Hypothesis 7: after adjusting for prior financial performance, the average profit ratios of firms that have superior IT capability in 2000s are higher than average profit ratios of all control firms in subsequent years Hypothesis 8: after adjusting for prior financial performance , the average cost ratios of firms that have superior IT capability in 2000s are lower than average cost ratios of all control firms in subsequent years 3. METHOD • comparing levels of interest variables between two groups: treatment sample & control sample Treatment sample: IT leaders with superior IT capability listed in Information Week 500 Control sample: firms matched to treatment sample based on similar size and industry (average sales level to that of the IT leaders 4. RESULTS • IT leader group didn’t show better performance in terms of profit ratios but they showed lower COG/S later than the control group Hypothesis 1 unsupported + Hypothesis 2 partially supported
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Zoe Zwiebelmann Maastricht University IM Session 2 • IT leaders did not show any higher profit ratio/lower cost ratio than control firms Hypotheses 3 + 4 both unsupported • as IT leaders nor had higher profit ratios or lower cost ratios, they did not perform better after adjusting for financial halo effect Hyporheses 5+6+7+8 unsupported 5. DISCUSSION FINDINGS: IT leaders not associated with higher profit/lower cost ratios + no evidence for sustainability of IT capability from analysis contradict findings of previous studies
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