TAILIEUCHUNG - Information technology resources and business performance: An Australian context

This study is expected to help companies’ managements to have a clearer view of how to enhance the benefits of IT resources on companies’ performance by understanding and focusing on the more important resources. | Asia Pacific Management Review 14(4) (2009) 407-426 Information Technology Resources and Business Performance: An Australian Context Thi Lien Phama,*, Ernest Jordanb a College of Economics, Vietnam National University, Vietnam Macquarie Graduate School of Management, Macquarie University, Australia b Accepted 27 April 2009 Abstract Information Technology (IT) resources have been suggested to contribute to business performance in the literature, yet the contribution of different resources is not well-explained. This study investigates the relationship between information technology resources and companies’ business performance with the presence of the information technology use intensity in industries. The relationship is studied not only at aggregate level but also at detail level which gives an answer to the question of which resource has the most effect on performance. The results of Australian company survey are used in this paper. It is found that IT human resource and IT infrastructure affect business performance while the effect of IT partnership is not significant. This study is expected to help companies’ managements to have a clearer view of how to enhance the benefits of IT resources on companies’ performance by understanding and focusing on the more important resources. Keywords: IT resources, IT capability, business performance, organizational performance, IT human resources 1. Introduction1 The business value of information technology has been debated for many years. “While some authors have attributed large productivity improvements and substantial consumer benefits to IT, others report that IT has not had any bottom line impact on business profitability” (Hitt and Brynjolfsson, 1996). Carr (2003) argued that IT is ubiquitous, increasingly inexpensive and accessible to all organisations, thus, it cannot provide differential advantage to any company because scarcity, not ubiquity, is the basis for a sustained .

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