Information technology investments and firm performance: The interacting effect of it governance

In recent times, investment in information technology (IT) has become indispensable in any company. Proper management of IT investment may create value for the company and improve its performance. However, companies face problems in choosing the right IT investment decision that improves companies&#...

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Main Author:	Alghorbany, Abdelkader
Format:	Thesis
Language:	eng eng eng
Published:	2023
Subjects:	T58.5-58.64 Information technology HF5001-6182 Business
Online Access:	https://etd.uum.edu.my/10710/1/permission%20to%20deposit-not%20allow-s903086.pdf https://etd.uum.edu.my/10710/2/s903086_01.pdf https://etd.uum.edu.my/10710/3/s903086_02.pdf
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id	my-uum-etd.10710
record_format	uketd_dc
spelling	my-uum-etd.107102023-10-25T01:54:32Z Information technology investments and firm performance: The interacting effect of it governance 2023 Alghorbany, Abdelkader Che Ahmad, Ayoib Olarinoye, Salau Abdulmalik Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy T58.5-58.64 Information technology HD28-70 Management. Industrial Management HF5001-6182 Business In recent times, investment in information technology (IT) has become indispensable in any company. Proper management of IT investment may create value for the company and improve its performance. However, companies face problems in choosing the right IT investment decision that improves companies' performance. Subsequently, the objective of the study was to investigate the effects of IT investment on companies’ performance in Malaysia. In addition, it examined further whether this effect was interacted by IT governance mechanisms such as CEO career horizon, CEO gender, CEO IT background, board IT training, government-linked companies and foreign-owned firms. This study employed the dynamic panel estimation technique, the Generalized Method of Moments (GMM), that considered the endogeneity nature of the performance model. The GMM analysis was based on data from 231 publicly listed companies in Bursa Malaysia between 2010 and 2019. It revealed a positive and non-significant association between IT investment and firm performance. Furthermore, the IT governance mechanisms (i.e., CEO career horizon, CEO gender, CEO IT background, board IT training, government-linked companies, and foreign-owned firms) were found to significantly enhance the positive association between IT investment and firm performance. Thus, the findings of this study have both theoretical and practical implications. The results provided empirical evidence on the direct impact of IT investment on firm performance. In addition, the indirect impact may serve as an indication for firms to understand IT governance mechanisms and its interaction effects between IT investment and firm performance. These would enhance the awareness of professionals, the board of directors and management in the critical role of IT governance practices and in ascertaining that firm’s IT investment is properly governed. 2023 Thesis https://etd.uum.edu.my/10710/ https://etd.uum.edu.my/10710/1/permission%20to%20deposit-not%20allow-s903086.pdf text eng staffonly https://etd.uum.edu.my/10710/2/s903086_01.pdf text eng staffonly https://etd.uum.edu.my/10710/3/s903086_02.pdf text eng staffonly other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Che Ahmad, Ayoib Olarinoye, Salau Abdulmalik
topic	T58.5-58.64 Information technology T58.5-58.64 Information technology HF5001-6182 Business
spellingShingle	T58.5-58.64 Information technology T58.5-58.64 Information technology HF5001-6182 Business Alghorbany, Abdelkader Information technology investments and firm performance: The interacting effect of it governance
description	In recent times, investment in information technology (IT) has become indispensable in any company. Proper management of IT investment may create value for the company and improve its performance. However, companies face problems in choosing the right IT investment decision that improves companies' performance. Subsequently, the objective of the study was to investigate the effects of IT investment on companies’ performance in Malaysia. In addition, it examined further whether this effect was interacted by IT governance mechanisms such as CEO career horizon, CEO gender, CEO IT background, board IT training, government-linked companies and foreign-owned firms. This study employed the dynamic panel estimation technique, the Generalized Method of Moments (GMM), that considered the endogeneity nature of the performance model. The GMM analysis was based on data from 231 publicly listed companies in Bursa Malaysia between 2010 and 2019. It revealed a positive and non-significant association between IT investment and firm performance. Furthermore, the IT governance mechanisms (i.e., CEO career horizon, CEO gender, CEO IT background, board IT training, government-linked companies, and foreign-owned firms) were found to significantly enhance the positive association between IT investment and firm performance. Thus, the findings of this study have both theoretical and practical implications. The results provided empirical evidence on the direct impact of IT investment on firm performance. In addition, the indirect impact may serve as an indication for firms to understand IT governance mechanisms and its interaction effects between IT investment and firm performance. These would enhance the awareness of professionals, the board of directors and management in the critical role of IT governance practices and in ascertaining that firm’s IT investment is properly governed.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Alghorbany, Abdelkader
author_facet	Alghorbany, Abdelkader
author_sort	Alghorbany, Abdelkader
title	Information technology investments and firm performance: The interacting effect of it governance
title_short	Information technology investments and firm performance: The interacting effect of it governance
title_full	Information technology investments and firm performance: The interacting effect of it governance
title_fullStr	Information technology investments and firm performance: The interacting effect of it governance
title_full_unstemmed	Information technology investments and firm performance: The interacting effect of it governance
title_sort	information technology investments and firm performance: the interacting effect of it governance
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2023
url	https://etd.uum.edu.my/10710/1/permission%20to%20deposit-not%20allow-s903086.pdf https://etd.uum.edu.my/10710/2/s903086_01.pdf https://etd.uum.edu.my/10710/3/s903086_02.pdf
_version_	1783729408662568960

Information technology investments and firm performance: The interacting effect of it governance

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