scholarly journals Information Technology, Organizational Learning, and the Market Value of the Firm

2003 ◽  
Author(s):  
Starling David Hunter
Keyword(s):  
Information Technology ◽  
Organizational Learning ◽  
Market Value

An Examination of the Effect of IT Investments on Firm Value: The Case of Y2K-Compliance Costs

2000 ◽  
Vol 14 (2) ◽  
pp. 95-108 ◽  
Author(s):  
Gopal V. Krishnan ◽  
Ram S. Sriram
Keyword(s):  
Information Technology ◽  
Stock Market ◽  
Firm Value ◽  
Market Value ◽  
Annual Reports ◽  
Equity Valuation ◽  
Compliance Costs ◽  
Book Value ◽  
It Investments ◽  
Share Prices

In this study, using the recent Y2-compliance expenditures as an example, we examine whether disclosures relating to investments in information technology (IT) were relevant to investors in assessing the market value of equity. We use a sample of 190 firms that disclosed estimates of total Y2K-compliance costs in their 1997 annual reports to examine the association between Y2K-compliance costs and share prices. We test the joint hypothesis that Y2K-compliance costs were relevant to equity valuation of firms that chose to become Y2K-compliant and that these costs were sufficiently reliable to be reflected in share prices. We find that estimates of Y2K-compliance costs were positively and significantly related to share prices after controlling for earnings, book value of equity, and other factors. We find that the stock market is not shortsighted, and consider investments in Y2K-remediation efforts a significant and value-increasing activity for the average firm.

COMPETENCIES FOR ORGANIZATIONAL INNOVATION POTENTIAL: AN EMPIRICAL ANALYSIS ON INDIAN INFORMATION TECHNOLOGY (IT) ORGANIZATIONS

2011 ◽  
Vol 15 (04) ◽  
pp. 667-685 ◽  
Author(s):  
SANGHAMITRA GOSWAMI ◽  
Mary Mathew
Keyword(s):  
Information Technology ◽  
Logistic Regression ◽  
Organizational Learning ◽  
Empirical Analysis ◽  
Organizational Innovation ◽  
Business Development ◽  
Innovation Potential ◽  
New Business ◽  
Managerial Implications ◽  
It Organizations

This study examines competencies that contribute to innovation in Indian Information Technology organizations (n = 42). These competencies were conceptualized and measured in this paper. Their measurement is described. A cluster of low and high potentially innovative organizations, based on measures from an earlier study by the authors, is used to understand the competencies in the context of innovation. An organizational innovation potential score categorized organizations as innovative (high) and less innovative (low) organizations. Logistic regression was done to assess the competencies of low and high innovative organizations. Results showed that product breadth competency, innovation adaptability competency, new business development competency and organizational learning competency contribute to organizational innovation potential. The paper discusses research and managerial implications.

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