IS/IT investments and firm performance: Indian evidence

Abstract

The importance of assessing the relationships between information system/information technology (IS/IT) investments and firm performance is well acknowledged. However, similar inquiries are found to be under-represented in emerging markets like India, which motivates this work. Based on secondary data, the study assesses the impact of IS/IT investments made by Indian firms over the last one and half decades on their performance. Results indicate that these investments have a negative impact on firm performance manifested through decline in both operating and equity market performance. This has implications for theory and practice, which are also discussed.