Study On The Firm Investment Decision On IT--Based On The Resource Complementary

The adoption of information technology (IT) in organizations has been growing at a rapid pace. The decision of IT investment has been one of the most significant business challenges of the last decade. IT projects, in particular, represent the largest capital expenditure items for most firms yet many projects have been unsuccessful.The objective of this paper is to explore the mechanism of IT return and make it guiding IT investment decisions, establish information technology investment decision-making framework, model and methods with practical guidance.This paper is organized as follows:Chapterâ… :reviews and extends recent scholarly and popular literature to provide the theoretical basis for future research.Chapterâ…¡:analyze how information technology is essentially affect enterprises'performance. The paper proposed two-stage return on IT investment model by fusing process-view and resources-based views.Chapterâ…¢:Based on two-stage return on IT investment model, this chapter proposed the hypothesis that there are positive relationship between the degree of Exogenous IT resource complementary to the firm's existing resource and endogenous IT resource. This paper collected the data by surveying firms. The research model was tested using structural equation model techniques. The empirical results support most of the research hypothesis.Chapterâ…£:discusses how the two-stage return on IT investment model effect the IT project investment decision making. Based on the analysis, we propose information technology investment decision-making framework based on resources complementary and selected the Real Options as it's the basic method.Chapterâ…¤:gives the concrete methods of the IT investment decision-making on the basis of IT project investment decision-making framework.Chapterâ…¥:makes a research case with a actual real world example. It presents the application of the IT investment decision-making framework and methods.Chapterâ…¦:summarizes the main conclusions of this paper, theoretical contributions. This chapter points out the possible limitations of this study and shortcomings and proposed further research directions.The main contribution of this research can be summarized in the following areas.(1) This paper proposes a two-stage return on IT investment model which develop the theoretical underpinning of IT investment decision-making.In this model, the study proposed only the endogenous IT resources can bring the competitive advantage and the firm can acquire the IT rent by the endogenous IT resources supporting firm's core competencies.(2) This paper discusses the factors which affect endogenous IT resources. The factors provide a formal theoretical grounding for information technology investment decision-making framework.(3) This paper deeply analysis the attribute of the endogenous IT resources and develop information technology investment decision-making framework based on resources complementary.(4) This paper propose information technology investment decision-making framework with directed by the model and the relationship between the resource complementarities and endogenous IT resources.(5) This paper assesses the degree of the resource complementarities with combination of ANP and the index of the resource complementarities.