Information Technology Investment and Commercialized Innovation Performance: Dynamic Adjustment Costs and Curvilinear Impacts (2024)

Karhade, P. P., & Dong, J. Q. (2021). Information Technology Investment and Commercialized Innovation Performance: Dynamic Adjustment Costs and Curvilinear Impacts. MIS Quarterly, 45(3), 1007-1024. https://doi.org/10.25300/MISQ/2021/14368

Karhade, Prasanna P ; Dong, John Qi. / Information Technology Investment and Commercialized Innovation Performance : Dynamic Adjustment Costs and Curvilinear Impacts. In: MIS Quarterly. 2021 ; Vol. 45, No. 3. pp. 1007-1024.

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title = "Information Technology Investment and Commercialized Innovation Performance: Dynamic Adjustment Costs and Curvilinear Impacts",

abstract = "A firm{\textquoteright}s investment in information technology (IT) has been widely considered as a key enabler of innovation. In this study, we intend to integrate prior findings for augmenting pathways (whereby IT investment supports innovation) with a new theory for suppressing pathways (whereby dynamic adjustment costs associated with IT investment can be detrimental to innovation) to propose an overall inverted U-shaped relationship between IT investment and commercialized innovation performance (CIP). To test our theory, we analyzed a unique panel dataset from the largest economy in Europe and discovered a curvilinear relationship between IT investment and CIP for firms across a broad spectrum of industries. Our research presents empirical evidence corroborating the augmenting and suppressing pathways linking IT investment and CIP. Our findings can serve as a cautionary signal to executives, discouraging overinvestment in IT.",

author = "Karhade, {Prasanna P} and Dong, {John Qi}",

year = "2021",

doi = "10.25300/MISQ/2021/14368",

language = "English",

volume = "45",

pages = "1007--1024",

journal = "MIS Quarterly",

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Karhade, PP & Dong, JQ 2021, 'Information Technology Investment and Commercialized Innovation Performance: Dynamic Adjustment Costs and Curvilinear Impacts', MIS Quarterly, vol. 45, no. 3, pp. 1007-1024. https://doi.org/10.25300/MISQ/2021/14368

Information Technology Investment and Commercialized Innovation Performance: Dynamic Adjustment Costs and Curvilinear Impacts. / Karhade, Prasanna P; Dong, John Qi.
In: MIS Quarterly, Vol. 45, No. 3, 2021, p. 1007-1024.

Research output: Contribution to journal › Article › Academic › peer-review

TY - JOUR

T1 - Information Technology Investment and Commercialized Innovation Performance

T2 - Dynamic Adjustment Costs and Curvilinear Impacts

AU - Karhade, Prasanna P

AU - Dong, John Qi

PY - 2021

Y1 - 2021

N2 - A firm’s investment in information technology (IT) has been widely considered as a key enabler of innovation. In this study, we intend to integrate prior findings for augmenting pathways (whereby IT investment supports innovation) with a new theory for suppressing pathways (whereby dynamic adjustment costs associated with IT investment can be detrimental to innovation) to propose an overall inverted U-shaped relationship between IT investment and commercialized innovation performance (CIP). To test our theory, we analyzed a unique panel dataset from the largest economy in Europe and discovered a curvilinear relationship between IT investment and CIP for firms across a broad spectrum of industries. Our research presents empirical evidence corroborating the augmenting and suppressing pathways linking IT investment and CIP. Our findings can serve as a cautionary signal to executives, discouraging overinvestment in IT.

AB - A firm’s investment in information technology (IT) has been widely considered as a key enabler of innovation. In this study, we intend to integrate prior findings for augmenting pathways (whereby IT investment supports innovation) with a new theory for suppressing pathways (whereby dynamic adjustment costs associated with IT investment can be detrimental to innovation) to propose an overall inverted U-shaped relationship between IT investment and commercialized innovation performance (CIP). To test our theory, we analyzed a unique panel dataset from the largest economy in Europe and discovered a curvilinear relationship between IT investment and CIP for firms across a broad spectrum of industries. Our research presents empirical evidence corroborating the augmenting and suppressing pathways linking IT investment and CIP. Our findings can serve as a cautionary signal to executives, discouraging overinvestment in IT.

U2 - 10.25300/MISQ/2021/14368

DO - 10.25300/MISQ/2021/14368

M3 - Article

SN - 0276-7783

VL - 45

SP - 1007

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JO - MIS Quarterly

JF - MIS Quarterly

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Karhade PP, Dong JQ. Information Technology Investment and Commercialized Innovation Performance: Dynamic Adjustment Costs and Curvilinear Impacts. MIS Quarterly. 2021;45(3):1007-1024. doi: 10.25300/MISQ/2021/14368