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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主要作者: Alghorbany, Abdelkader
格式: Thesis
語言:eng
eng
eng
出版: 2023
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在線閱讀: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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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
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