Authors are listed in alphabetical order.
Corporate Governance and returns on information technology investment: evidence from an emerging market†
Version of Record online: 9 SEP 2010
Copyright © 2010 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 32, Issue 6, pages 595–623, June 2011
How to Cite
Ho, J. L. Y., Wu, A. and Xu, S. X. (2011), Corporate Governance and returns on information technology investment: evidence from an emerging market. Strat. Mgmt. J., 32: 595–623. doi: 10.1002/smj.886
- Issue online: 6 APR 2011
- Version of Record online: 9 SEP 2010
- Accepted manuscript online: 23 AUG 2010 08:39AM EST
- Manuscript Revised: 6 AUG 2010
- Manuscript Received: 24 SEP 2008
- IT investment;
- board independence;
- foreign ownership;
- firm performance;
- firm size;
- industry competitiveness
Prior studies have reported mixed findings on the impact of corporate information technology (IT) investment on firm performance. This study investigates the effect of corporate governance, an important management control mechanism, on the relation between IT investment and firm performance in the Taiwanese electronics industry. Specifically, we explore board independence and foreign ownership, which have increasingly become salient factors concerning corporate governance in emerging markets. We address their roles across firms of different sizes and in industries where degrees of competitiveness run a wide gamut. Our results show a positive moderating effect of board independence on the IT investment-firm performance relation, especially when competition intensifies. Furthermore, we find that the greater the foreign ownership in small firms, the more positive the IT investment-firm performance relation, suggesting that foreign investors may bring IT expertise to help small firms reap the benefits of using IT. Copyright © 2010 John Wiley & Sons, Ltd.