Information technology and corporate profitability: A focus on operating efficiency

Document Type

Article

Publication Date

1-1-2003

Abstract

This work involves an empirical analysis, incorporating firm-level investment in information technology and financial statement information, which provides an accurate measure of operating revenue, in a profitability function over the period from 1995-1997. The results indicate that IT can enhance firm level profitability. Factors such as advanced computer processing, the proliferation of PCs to the consumer and business environment, the development of the Internet, and advanced software applications have significantly augmented previously existing information technology. This new IT has provided infrastructure for advanced information networks which facilitate the flow of value added information to decision makers and enable corporate enterprises to more easily operate in the new global ecomomy. As a result, larger companies can provide a variety of goods and services that more effectively meet consumer preferences in a more efficient, cost-effective manner.

Identifier

0042882241 (Scopus)

Publication Title

Information Resources Management Journal

External Full Text Location

https://doi.org/10.4018/irmj.2003010101

ISSN

10401628

First Page

1

Last Page

13

Issue

1

Volume

16

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