Information Technology Investments: A Literature Review

Abstract:

While researchers have encouraged further examination on the causal links between Information
Technology (IT) investments and a firm’s performance, results of empirical studies have been varied. This is to a certain extent due to the exclusion of IT-business partnership (also known as IT-business strategic alignment). Indeed, strategic alignment has emerged as one of the most important concern facing business and IT executives all over the world (Raymond and Croteau, 2009, Johnson and Lederer, 2010). Therefore, the purpose of this paper is to provide a detailed literature review that both academics and practitioners can use in order to understand the resources required to realize the potential values of their IT investments. This is achieved by providing a review of the IT and IT-business literature on a firm’s business performance. It is hoped that the article will spark helpful discussion on the merits of continuous examination of IT investments.