The role of information technology on the growth of firms: A value added onsideration

Mohammad Ali Jamali, Hatra Voghouei, Nor Ghani Md Nor

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This paper concentrates on growth; one of the important aspects of firm behavior, in the Malaysian manufacturing sector between 2000 and 2006. It attempts to analyze the effects of information technology on firms' growth in this period among 185 firms. By employing dynamic panel data and generalized method of moments (GMM), this work shows that information technology expenditure displays a positive effect on the growth of firms in the Malaysian manufacturing sector. The results also show that besides this factor, some elements, such as minimum efficient scale, productivity, technology, sunk cost, and capital-labor ratio have an effect on firms' growth. The findings show that information technology expenditure could not be an effective tool for enhancing growth for firms that are under a certain level of productivity.

Original languageEnglish
Pages (from-to)313-325
Number of pages13
JournalJournal of Theoretical and Applied Information Technology
Volume57
Issue number3
Publication statusPublished - 2013

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Information Technology
Information technology
Productivity
Sector
Manufacturing
Generalized Method of Moments
Panel Data
Method of moments
Business
Personnel
Costs

Keywords

  • GMM
  • Growth
  • Information technology
  • Malaysian manufacturing sector

ASJC Scopus subject areas

  • Computer Science(all)
  • Theoretical Computer Science

Cite this

The role of information technology on the growth of firms : A value added onsideration. / Jamali, Mohammad Ali; Voghouei, Hatra; Md Nor, Nor Ghani.

In: Journal of Theoretical and Applied Information Technology, Vol. 57, No. 3, 2013, p. 313-325.

Research output: Contribution to journalArticle

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