Abstract for: Impacts of Corporate IT Investment Strategies on Operational Performance Based on Intellectual Capital Framework
In recent years, due to fast development of information technology and fierce competition, information technology investment strategies are significant factors to sustain business operation. Furthermore, rival investment strategies and allocation of complementary assets should be taken into account so as to achieve maximum efficacy of the strategies. This study adopts the intellectual capital structure and complementary asset theory, and investigates Taiwan’s information-intensive services. A research model is presented to discuss the impacts of information technology investment strategies on organizational performance based on intellectual capital framework. This study introduces a system dynamics method to analyze a case of two rival companies, and interprets the effects of different IT investment strategies on operation performance through simulation and scenario analysis. The simulation results can help companies making information technology strategies and evaluating their overall performance. The results indicate that different information technology investment strategies and matching degree of complementary resources have different impacts on the organizational performance. Moreover, this can help companies to make IT investment strategies. The studied results can provide important theory and practice implications for organizational IT management.