Research On The Impact Of Industry Characteristics On It Investment Performance

The performance evaluation of information technology has always been a very concerned issue in the field of industrial engineering.In recent years,the research on it performance has gradually shifted from the enterprise to the industry,and the research on it investment performance in the industry has attracted more and more attention.There are many research results show that it investment performance of different industries is affected by industry differences,but there is no unified conclusion on the specific reasons for this impact.Therefore,based on the existing research abroad,this paper hopes to explore the differences of it performance in China's domestic industry,and use industry characteristics to explain the differences of IT investment performance and risk between industries.This paper builds a conceptual model of the relationship between industry Competitiveness,industry capital density,industry ownership structure and industry IT investment and industry performance.It uses industry productivity,industry profitability and industry risk to measure industry performance,and also measures IT investment from both hardware and software aspects.Then,based on the conceptual model,relevant hypotheses are put forward,and empirical studies are carried out using the data of the Shanghai,Shenzhen and A stock markets from 2007 to 2018.Most of the hypotheses are supported by the empirical results.The results show that there is no "productivity paradox" in China market,and IT investment can significantly increase productivity.At the same time,under the influence of different industry characteristics,the relationship between industry IT investment and industry performance is quite different.For highly competitive industries,IT investment can increase productivity,but it does not significantly improve profitability,but it also brings greater risk.For capital-intensive industries,IT investment can increase productivity,but at the same time face greater risks.For industries with high proportion of state-owned holding,IT investment can improve productivity,but it can`t significantly improve the profitability of the industry.At the same time,the research results show that IT software investment has a more significant impact on industry performance.The results of this study provide some suggestions and inspiration for Chinese enterprises IT investment,and help managers in various industries to better understand and implement IT projects.Enterprises need to carefully consider the industry environment in which they are located in the IT decision-making level.At the same time,the conclusions of this study further enrich the research on IT investment and industry performance in China.