IT Innovation Capability and Returns on IT Innovation Persistence

Prior studies have shown that the IT innovation capability, a company\u27s ability to innovate systematically with IT, is not easily replicated (persistent), and the persistence tends to be more pronounced during periods when economy-wide IT budgets are declining (hard IT budgets), such the post-Y2K period. Building on resource based view we argue that companies that systematically innovate with IT have a sustained competitive advantage versus their competitors who are adopting an opportunistic approach to IT innovation or choose not to innovate with IT, and the advantage is stronger during periods of hard IT budgets. Both of these arguments were strongly supported when tested on a sample of 1,057 large US firms by indicating increased return on sales, return on assets, and growth

The Effect of IT Innovation on Industrial Output Elasticities

Over the past decade, IT investment has been regarded as a key factor in enhancing productivity and economic development in Korea. This paper will assess whether the IT industry can positively affect structural change using an Input-Output model. Changes in Korean industries are traced using assumptions of IT innovation based on data from 1995 through 2000. Analysis reveals that the response of the economy falls short of our expectation that the development of the IT industry would generate growth in the productivity of the Korean economy. Government policy has been oriented toward cultivating IT industry through heavy investment, while neglecting efforts to make the overall industrial structure compatible with IT. We conclude that IT policy should be market-oriented to make the overall economy IT friendly so that industrial structures will respond more positively to IT developmentIT Industry, Output Elasticity, Productivity, Industrial Structure

A meta-analysis of relationships between organizational characteristics and IT innovation adoption in organizations

This is the post-print version of the final paper published in Information & Management. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. Copyright @ 2012 Elsevier B.V.Adoption of IT in organizations is influenced by a wide range of factors in technology, organization, environment, and individuals. Researchers have identified several factors that either facilitate or hinder innovation adoption. Studies have produced inconsistent and contradictory outcomes. We performed a meta-analysis of ten organizational factors to determine their relative impact and strength. We aggregated their findings to determine the magnitude and direction of the relationship between organizational factors and IT innovation adoption. We found organizational readiness to be the most significant attribute and also found a moderately significant relationship between IT adoption and IS department size. Our study found weak significance of IS infrastructure, top management support, IT expertise, resources, and organizational size on IT adoption of technology while formalization, centralization, and product champion were found to be insignificant attributes. We also examined stage of innovation, type of innovation, type of organization, and size of organization as moderator conditions affecting the relationship between the organizational variables and IT adoption

IT Innovation Budgets in Turbulent Times

In past economic downturns, companies did first of all cut IT budgets and budgets for innovation. In the current economic situation companies are not only confronted a cyclical downturn, they are faced a fundamental question about the way they do business. However, the IT organization has the potential to reduce the negative effects of the economic downturn for the company. Furthermore, the perception of the IT organization has changed towards a major enabler of business innovation. The paper investigates the development of IT innovation budgets and the influence of an IT innovation strategy on the budget. Results show that IT innovation budgets are very resistant and do not change as much as IT budgets. Moreover, developing and implementing an IT innovation strategy has a positive impact on the available budget for IT innovations

Competitive Advantages Through it Innovation Adoption by Smes

Purpose—This paper seeks to explain the impact of IT innovation on competitive advantage; the barriers and the benefits companies gain from adopting and using these innovations and propose a model with which it is possible to measure determinants of IT innovation adoption among SMEs.Design/methodology/approach—This paper presents conceptual consideration on the role of SMEs in the Malaysian economy and the effect of government policy in encouraging companies to adopt IT innovation. The proposed research framework will be empirically validated using survey data. This study is an ongoing research, in the existing stage a theoretical argument is developed and methodology is in the process of being tested through regression analysis.Findings—Conclusions are drawn on the status of Malaysian SMEs to adopt IT innovation. We added attitude and self-efficacy to the Innovation Diffusion Theory to suit it to the individual situation. Therefore a novel approach is needed in order to study and understand it.Research limitations/implications—The paper represents work in progress.Practical implications – This paper present the theoretical framework for further study of IT innovation adoption among Malaysia SMEs.Originality/Value—The Information Technology concept is considered a powerful competitive weapon in the modern economy. This study used Innovation Diffusion Theory as the base theory, and added attitude and self efficacy as determinants to measure the individual’s perception toward innovation adoption. Individual self-efficacy and attitude toward innovation adoption shape beliefs and perceptions toward innovation, leading them to adopt or reject an innovation. Adding these factors to Innovation Diffusion Theory will narrow the breadth of the theory and possibilities to frame a single study which allows examination of the individual and technological dimension toward technology adoption.Keywords: IT innovation adoption, competitive advantage, Innovation Diffusion Theory, SMEs, Malaysia.Research type: conceptual paper

An Information Processing Paradigm of IT Innovation Adoption

Recent research suggests that there may be other, more granular factors that influence the adoption of innovations like cloud computing by organizations. In the current study, organizational adoption of cloud computing is investigated by examining specific aspects of the classical diffusion theory as they are framed in the context of the information processing paradigm. The authors argue that various aspects of an organization and its respective environment create different information needs and influence the adoption and the diffusion of information technology (IT) innovation. An empirical study is conducted to test the model. The results show that the business process complexity, organizational culture and the compatibility of the current information system all contributes to the organization’s adoption decision. This study serves as a preliminary effort to investigate how the information processing requirement affects firms’ attitude to adopt IT innovation

Relationship Between Investment and IT Innovation Consumer Acceptance

According to recent studies, ineffective innovation performance has the possibility for adverse financial performance as innovation is a significant driver of consumer acceptance and organizational performance. Researchers have demonstrated that innovation management can be successful but has not been able to determine the correlation of consumer acceptance. The purpose of this quantitative correlational study is to understand and interpret how organizations manage innovation and how it relates to their performance and consumer acceptance. The methodology encompasses innovation resistance theory and the technology acceptance model. The study includes participant selection, research instrument use, recruitment procedures, participation, data collection, and data analysis. The results suggest that organizations can increase profitability by offering innovative products and managing innovation based on consumer acceptance criteria. The findings also support the technology acceptance model, indicating that consumers are more likely to accept subscription services that are easy to use on their smartphones. The implications of this study include potential positive social change through improved organizational performance, job creation, and increased competitiveness within industries. The social impact of managing innovation in turn could promote a professional development inside an organization and their performance strategies