The Impact of IT Capabilities on Firm Performance and Labor Productivity: Transaction Costs Economics Perspective

Abstract

This study examines the importance of information technology in order to gain more firm performance and labor productivity with coordination cost as the mediating effect These variables were built on one theoretical foundations –transaction cost economics (TCE) Specifically the main purpose of this study is to integrate and explain how IT capabilities can affect the firm output firm performance and labor productivity These relationships also tested by using US company between 2011 to 2016 from Information Week and Compustat database The hypotheses further were tested by using a smartPLS path analysis and time lag effect The results showed that IT capabilities which is conceptualized as IT spending mostly positive and significant with coordination costs coordination costs has negative relation with firm performance and positive relation with labor productivity in one-year time lag effect However IT has a little effect to labor productivity when it comes to long term effect and positive effect to firm performance Generally this study provides some theoretical and practical contributions to IS literature and to managers in US company

Date of Award	2018 Jul 20
Original language	English
Supervisor	Jeng-Chung Chen (Supervisor)