The Impact Of IT Investment On Manufacturing Firms

Manufacturing is a country's economic development pillar and also leading a country's economic growth and transformation.With the rapid development of the Internet and new information technologies in recent years,manufacturing enterprises have to face the dilemma of transformation and upgrading.In this context,it is becoming more and more important of how information technology or IT promote the improvement of manufacturing enterprise performance.No matter in the academia or industry,people always pay a close attention on the relationship between IT and firm performance and try to find an effective path for IT applications through firm performance evaluation.Therefore,this paper attempts to study the performance evaluation of manufacturing enterprises from the perspective of IT investment.Base on this,we hope to provide a reference for the development direction of China's manufacturing and promote the transformation and upgrading process of China manufacturing.This paper begins with the related research in the field of IT investment and firm performance and summarizes their current situation at home and abroad.Secondly,the paper introduces the development of China manufacturing industry and the fundamental principle of data envelopment analysis or DEA.Then select 5 key activities in firm supply chain as the intermediate variables for the establishment of a two-stage DEA model with external inputs,and the nonlinear problem of this model is solved by a parameter linear program.For the nest step,choose the sample data of the World Bank Enterprise Survey in 2011 which covered 25 cities in China.And next use the MATLAB software program to empirically analyze the performance evaluation of China manufacturing firms.Based on this,give concrete explanations from the perspective of the whole manufacturing industry,the leader stage,12 sub-sectors,and 25 sites.Finally,provide some suggestion about strengthening the information technology construction,supporting innovation activities,coordinating regional and industrial development and improving personnel training for government and enterprises to accelerate the improvement in manufacturing firms performance.