Investigating the Impact of Firm Strategy – Click-and-Brick, Brick-and-Mortar, and Pure-Click – on Financial Performance

Attracted by the numerous benefits of E-commerce, many traditional brick-and-mortar firms have embraced the Internet to supplement their business operations and have adopted the “click-and-brick” approach. Despite these changes, insufficient empirical research has been conducted on the impact of different firm types on financial performance. Based on the resource-based view, this study presents empirical research examining the possible ramifications and an overall impact. This study does this by comparing financial performance of click-and-brick firms with the performance of traditional, as well as pure-click firms that rely solely on the Internet.E-commerce, pure-click, click-and-brick, brick-and-mortar, financial performance, resourced-based view

Confirmation Biases in the Financial Analysis of IT Investments

This paper focuses on the optimistic and confirmation biases of experts with respect to major IT investments and their interaction with financial analysts’ competencies in finance and information technology. We used an experimental design that involved asking subjects to predict the financial market’s reaction to major IT investment announcements. Drawing on the literature on optimistic biases, we showed that IT and financial expertise lead to different forecasting patterns. We found that financially competent participants are more subject to confirmatory biases and have a tendency to hold on to a currently favored hypothesis throughout their analysis. IT expertise, though, mitigates the analyst’s confirmatory bias, so that dual expertise leads to less optimistic biases

Examination of Corporate Investments in Privacy: An Event Study

The primary objective of any corporate entity is generating as much wealth as possible. Investing financially in technology domains has historically been a successful strategy for generating increased corporate and shareholder wealth. However, investments in Information Technology (IT), Information Systems (IS) and Information Security (InfoSec) to specifically generate increased wealth must be implemented carefully. Shareholders reacting to corporate investments perceive financial value from individual investments. The investment’s perceived value is then reflected in the corporation’s updated stock market value. IS, IT, and InfoSec investments perceived to possess positive financial value, indicating strong potential for increased wealth, are rewarded by shareholders through increased stock market value; conversely, investments perceived to possess negative financial value, likely to decrease corporate wealth, are punished by shareholders through decreased stock market value. Previous research utilizing Event Study Methodology (ESM) determined financial impact that investments had on corporate stock market value after press release announcements identifying the investment. Based on early success across various domains, additional Event Study Research (ESR) was further conducted within IS, IT, and InfoSec. Most studies aligned into one of three categories: 1) Investments in IT, 2) Information Security Breaches, and 3) IT Outsourcing, and similarly measured changes in market value from corporate investments in related IS, IT, and InfoSec products and services. Examination of the extant body of literature identified a gap within the Privacy domain; minimal ESR examining privacy and the financial impact from corporate investments in privacy. While financial loss associated with a breach incident is identified as the motivating force driving increased corporate investments in defensive measures, “privacy” is identified as a singular construct with little concern for the associated invasion of privacy. As such, little is known about privacy, potential financial risks associated with a privacy breach, nor an understanding of why corporations are not investing in privacy. This research extends the body of literature and makes an academic contribution by: 1) using ESM to identify the financial and overall stock market implications from corporate investments in privacy, 2) identifying the economic incentives motivating corporate investments in privacy, and 3) gaining a better overall understating of corporate investments in privacy, and why corporations are not investing in privacy

Development and evaluation of a methodology for developing websites

This research focuses on the development of a new methodology for creating effective websites, especially those used for marketing. It was found that existing methodologies were missing some key stages - user participation and “real interaction” (i.e. monitoring of user interaction with a prototype site). This has led to users being frustrated and lacking loyalty to the website. There is great potential for combining aspects of methodologies from different disciplines; however, these need to be integrated in a coherent way. To address these problems, a new integrated methodology was developed in this research. The new methodology was created from basic concepts derived from: lifecycle models; Information Systems development methodologies; methodologies with explicit human factors aspects; websites methodologies; marketing methodologies; and additional techniques such as task analysis and detailed website design and implementation. After studying the lifecycle model, the researcher identified four key principles, which were the foundation of the research: user participation; iteration; usability and “real interaction”. The way in which these four principles were incorporated in each methodology was evaluated in order to choose the strongest stages to utilize in the new combined methodology. After reviewing techniques for methodology integration, a new draft methodology was produced. To assess the new methodology, two research phases were used - interviews and a questionnaire. In the former phase, the researcher interviewed representatives from nine website development companies in Western Australia to discuss their current methodologies and compared these with the new methodology.Most of the industry participants were pleased with the structure of the new methodology, as most agreed that it incorporates the necessary requirements to develop a successful website. The interviews generated some recommendations for revisions to the methodology, which assisted the researcher to improve the new methodology. In the latter phase, an online questionnaire was completed by a total of website industry participant andInformation Systems Professionals, in order to assess the revised methodology. Results from the interviews and questionnaire supported the research hypothesis – i.e. that the new integrated methodology can provide a more effective way of developing websites, utilizing the four key principles. This thesis points to the need for further research, including the development of a website describing the new methodology. This website will incorporate a software tool to facilitate selection of particular stages, steps and techniques from theintegrated methodology to produce a tailored methodology for any specific project, thereby implementing the concept of “contingency”