Name
Title | ||
|---|---|---|
It Capability And A Firm'S Ability To Recover From Losses: Evidence From The Economic Downturn Of The Early 2000s |
Abstract | ||
|---|---|---|
Prior literature shows that during an economic downturn firms have difficulty sustaining superior performance, and a larger percentage of firms report losses. Motivated by this literature, we explore the role of sustainability of organizational IT capability (ITC) on a firm's performance during an economic downturn. Specifically, we examine how ITC sustainability contributes to a firm's ability to recover from losses. ITC sustainability reflects a firm's ability to resist competitors' attempts to imitate or improve on its ITC. We use ITC sustainability to classify firms as sustainable (Systematic ITC), as non- sustainable (Occasional ITC), and as having no ITC (Non-ITC). Using a sample of large U. S. firms during the economic downturn of the early 2000s, we show that Systematic ITC firms achieve higher levels of firm-specific abnormal earnings and are capable of faster recovery when compared to all competitors (Occasional ITC and NonITC firms) and competitors with only Occasional ITC. |
Year | DOI | Venue |
|---|---|---|
2011 | 10.2308/isys-10108 | JOURNAL OF INFORMATION SYSTEMS |
Keywords | Field | DocType |
IT capability, firm-specific abnormal earnings, loss recovery | Earnings,Recession,Computer science,Commerce,Industrial organization,Marketing,Sustainability,Competitor analysis | Journal |
Volume | Issue | ISSN |
25 | 2 | 0888-7985 |
Citations | PageRank | References |
11 | 0.51 | 19 |
Authors | ||
3 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Changling Chen | 1 | 12 | 0.90 |
| JeeHae Lim | 2 | 165 | 13.29 |
| Theophanis C. Stratopoulos | 3 | 66 | 5.87 |