Business Administration 3300K Study Guide - Quiz Guide: Information Technology Management, Switching Barriers, Product Differentiation

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S4-mis: information technology capability and firm performance - chae. It capability: encompasses it infrastructure, human it resources comprised of technical and managerial it skills, it-enabled intangibles such as knowledge assets, customer orientation, synergy. Hypothesis 1: average profit ratios of firms that have superior it capability in the 2000s are higher than the average profit ratios of all control firms. Hypothesis 2: average cost ratios of firms that have superior it capability in the 2000s are lower than the average profit ratios of all control firms. Hypothesis 1: average profit ratios of firms that have superior it capability in the 2000s are higher than the average cost ratios of all control firms in the subsequent years. Hypothesis 2: average cost ratios of firms that have superior it capability in the 2000s are lower than the average cost ratios of all control firms in the subsequent years.