Information Technology in Global Economy

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SafeAssign Originality Report Summer 2019 - InfoTech in a Global Economy (ITS-… • Week 14 - Written Assignment

%%98To t a l S c o r eTo t a l S c o r e:: High risk Sunil Kumar Reddy Donuru

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University of the Cumberlands

Sunil Reddy Donuru

Prof: Dr Jess Schwartz

The main purpose of this article is to show how the IT strategic emphases and IT investments can affect a firm’s profitability level and market value. To further show the clear effect, the author used empirical tests founded from the documented information collected from over 300 firms in U.S. on this clear picture, the author concludes that organizations with a dual emphasis in their IT system have a higher Tobin's Q than firms with an income or a cost emphasis at its mean estimation ventures. The author suggests that firms may decide on using IT strategic emphasis for one reason alone and that is to moderate the strong correlation between IT investments and firm performance. The major discovery of the research was that firms that have adopted dual-emphasis on IT strategies have a stronger IT–profitability relationship than sin- gle-emphasis firms, these firms also have a stronger IT–Tobin’s Q relationship than firms that have adopted the revenue-emphasis strategy. The conclusions from this research has been used all over the world by managers and business owners to help them in making informed deci- sions on how to allocate assets for IT strategies that can efficiently support the overall goal of an organization. For average levels of IT ex- penditure, a dual emphasis in IT strategy satisfies as long as a higher firm valuation, and a larger amount of IT speculations are made with dual emphasis on increased attractiveness that concerns both profitability and Tobin's Q (Leidner, D. E., Lo, J., and Preston, D. 2011). The re- search elicits some conclusions that will help managers to make informed decisions on which strategic emphasis to adopt for a given depart-

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S o u r c e M a t c h e sS o u r c e M a t c h e s ( (2 12 1))

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search elicits some conclusions that will help managers to make informed decisions on which strategic emphasis to adopt for a given depart- ment or even for the overall company. The trade-offs between dual emphasis strategy and single centred strategy involves a more complex de- cision as the strategy adopted affects the firm performance and therefore the firm’s future growth or failure. The strategy chosen must align with the strategic goals of a company. This research help managers understand the implications on the market value that their actions and strategic choices can cause since adoption of some strategic emphasis can have a great effect on the company’s market value without im- pacting the company’s profitability level. Forming a profitable portfolio is essential for a company to receive a more stable cash inflow. The research help managers know how to combine carefully the strategic choices across various functional areas to form a portfolio of strategic op-

tions that will enable them to meet their desired performance objectives (Rai, A., et al, 1997).

One of the course objectives covered in this article is the ability of global economy students upon completion to be able to participate competi- tively in international economic policy debates. One of the article’s conclusions is that dual-emphasis firms have a stronger IT–profitability rela- tionship than single-emphasis firms. A global economy student upon providing clear justifications can show approve or oppose this conclusion. The course enables students to participate in international economic debates as it inserts knowledge that help students to have their opinions

and not just to agree with anything (Anderson, M. C., et al, 2006).

Another course objective covered in the article is that global economy will help students upon completion to outline the development trade theory historically, differentiating standard classical and orthodox trade theories. The article’s main objective was to conceptualize why an income, cost, or dual key strategy in IT system will influence firm performance and moderate the profits of IT speculations. The article shows the reasons why a firm might decide to remunerate dual strategies and this is part of the objectives of learning global economy in that students should be able to carefully understand the trade theories and how to apply them in real life. For example, this article states that the main reason why firms choose dual strategy over single methodologies might have something to do with the fact that business sectors may see dual strategies to be less replicable in view of RBV systems, decreased unavoidable losses and copious low-draping organic products in cir- cumstance space and extend focuses in two key regions identified with incomes and expenses. Together these instruments may allow dual em- phasis firms to have increasingly economical, higher, and quickened inflow streams in light of synchronous focuses for higher incomes what's more, lower costs, with less fluctuation in real money streams since money streams have two sources (revenue growth and cost reduction), while firms with a single emphasis on either revenue growth or cost reduction have just one source of IT-empowered income (Aguinis, H., et al,

2010).

References

Anderson, M. C., Banker, R. D., and Ravindran, S. 2006. “Value Implications of Investments in Information Technology,” Management Science (52:9), pp.

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1359-1376. Aguinis, H., Werner, S., Abbott, J. L., Angert, C., Park, J. H., and Kohlhausen, D. 2010. “Customer-Centric Science: Reporting Significant Research, Results with Rigor, Relevance, and Practical Impact in Mind,” Organizational Research Methods (13:3), pp. 515-539. Rai, A., Patnayakuni, R., and Patnayakuni, N. 1997. “Technology Investment and Business Performance,” Communications of the ACM (40:7), pp. 89-97. Leidner, D. E., Lo, J., and Preston, D. 2011. “An Empirical Investigation of the Relationship of IS Strategy with Firm Performance,” Journal of Strategic Information Systems (20), pp. 419-437. Khuntia, J., Whitaker, J. W., Mithas, S., and Kaushik, A. 2014. “Strategic Fo- cus, Client Satisfaction and Firm Performance: Evidence from Offshore Business Process Outsourcing Providers,” in Proceedings of the 2014 Annual INFORMS Conference on Information Systems and Technology, S. Bhattacharjee, R. Gopal, R. Rao and S. D. Smith (eds.), San Francisco: Information Systems Society.

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Student paper

University of the Cumberlands Sunil Reddy Donuru

Original source

University of the Cumberlands Sunil Reddy Donuru

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8/11/19, 10(43 AMOriginality Report

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My paper 85%

My paper 78%

My paper 97%

Student paper 97%

Student paper

Dr Jess Schwartz The main purpose of this article is to show how the IT strate- gic emphases and IT investments can affect a firm’s profitability level and market value.

Original source

Dr Jess schwartz The article is all about showing how the IT strategic em- phases and IT investments affects a firm’s profitability and market worth

1

Student paper

on this clear picture, the author concludes that organizations with a dual em- phasis in their IT system have a higher Tobin's Q than firms with an income or a cost emphasis at its mean estimation ventures.

Original source

The major conclusion here was that that organizations with a dual emphasis in their IT system have a higher Tobin's Q than firms with an income or a cost emphasis at its mean estimation ventures

1

Student paper

The major discovery of the research was that firms that have adopted dual- emphasis on IT strategies have a stronger IT–profitability relationship than single-emphasis firms, these firms also have a stronger IT–Tobin’s Q relation- ship than firms that have adopted the revenue-emphasis strategy.

Original source

Dual-emphasis firms have a stronger IT–profitability relationship than single- emphasis firms, and dual-emphasis firms have a stronger IT–Tobin’s Q rela- tionship than revenue-emphasis firms

1

Student paper

For average levels of IT expenditure, a dual emphasis in IT strategy satisfies as long as a higher firm valuation, and a larger amount of IT speculations are made with dual emphasis on increased attractiveness that concerns both profitability and Tobin's Q (Leidner, D.

Original source

For average levels of IT expenditure, a dual emphasis in IT strategy satisfies as long as a higher firm valuation, and a larger amount of IT speculations are made with dual emphasis on increased attractiveness that concerns both profitability and Tobin's Q

2

Student paper

8/11/19, 10(43 AMOriginality Report

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My paper 100%

My paper 83%

My paper 97%

Student paper

E., Lo, J., and Preston, D.

Original source

E., Lo, J., & Preston, D

1

Student paper

This research help managers understand the implications on the market val- ue that their actions and strategic choices can cause since adoption of some strategic emphasis can have a great effect on the company’s market value without impacting the company’s profitability level.

Original source

Since adoption of some strategic emphasis can have a great effect on the company’s market value without impacting the company’s profitability level, this research help managers understand the implications on the market val- ue that their actions and strategic choices can cause

1

Student paper

The research help managers know how to combine carefully the strategic choices across various functional areas to form a portfolio of strategic op- tions that will enable them to meet their desired performance objectives (Rai, A., et al, 1997). One of the course objectives covered in this article is the abili- ty of global economy students upon completion to be able to participate competitively in international economic policy debates. One of the article’s conclusions is that dual-emphasis firms have a stronger IT–profitability rela- tionship than single-emphasis firms.

Original source

Also, the research help managers know how to combine carefully the strate- gic choices across various functional areas to form a portfolio of strategic op- tions that will enable them to meet their desired performance objectives (Aral, S., and Weill, P Another course objective mentioned in this article is the ability of global economy students upon completion to be able to participate competitively in current debates in international economic policy For exam- ple, in the article it is started that dual-emphasis firms have a stronger IT– profitability relationship than single-emphasis firms

1

Student paper

Another course objective covered in the article is that global economy will help students upon completion to outline the development trade theory his- torically, differentiating standard classical and orthodox trade theories. The article’s main objective was to conceptualize why an income, cost, or dual key strategy in IT system will influence firm performance and moderate the prof- its of IT speculations. The article shows the reasons why a firm might decide to remunerate dual strategies and this is part of the objectives of learning global economy in that students should be able to carefully understand the trade theories and how to apply them in real life. For example, this article

8/11/19, 10(43 AMOriginality Report

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My paper 100%

My paper 100%

My paper 100%

states that the main reason why firms choose dual strategy over single methodologies might have something to do with the fact that business sec- tors may see dual strategies to be less replicable in view of RBV systems, de- creased unavoidable losses and copious low-draping organic products in cir- cumstance space and extend focuses in two key regions identified with in- comes and expenses.

Original source

One of the course objectives covered in the article is that global economy will help students upon completion to outline the development trade theory his- torically, differentiating standard classical and orthodox trade theories The article’s main objective was to conceptualize why an income, cost, or dual key strategy in IT system will influence firm execution and moderate the profits to IT speculations The article shows the reasons why a firm might decide to re- munerate dual strategies and this is part of the objectives of learning global economy in that students should be able to carefully understand the trade theories and how to apply them in real life For example, this article states that the main reason why firms choose dual strategy over single methodolo- gies might have something to do with the fact that business sectors may see dual strategies to be less replicable in view of RBV systems, decreased un- avoidable losses and copious low-draping organic products in circumstance space and extend focuses in two key regions identified with incomes and expenses

1

Student paper

Together these instruments may allow dual emphasis firms to have increas- ingly economical, higher, and quickened inflow streams in light of syn- chronous focuses for higher incomes what's more, lower costs, with less fluc- tuation in real money streams since money streams have two sources (rev- enue growth and cost reduction), while firms with a single emphasis on either revenue growth or cost reduction have just one source of IT-empowered in- come (Aguinis, H., et al, 2010).

Original source

Together these instruments may allow dual emphasis firms to have increas- ingly economical, higher, and quickened inflow streams in light of syn- chronous focuses for higher incomes what's more, lower costs, with less fluc- tuation in real money streams since money streams have two sources (rev- enue growth and cost reduction), while firms with a single emphasis on either revenue growth or cost reduction have just one source of IT-empowered in- come (Aguinis, H., et al, 2010)

1

Student paper

C., Banker, R. D., and Ravindran, S.

Original source

C., Banker, R D., and Ravindran, S

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Student paper

8/11/19, 10(43 AMOriginality Report

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Student paper 98%

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Student paper 92%

Student paper

“Value Implications of Investments in Information Technology,” Management Science (52:9), pp.

Original source

“Value Implications of Investments in Information Technology,” Management Science (52:9), pp

1

Student paper

Aguinis, H., Werner, S., Abbott, J. L., Angert, C., Park, J. H., and Kohlhausen, D.

Original source

Aguinis, H., Werner, S., Abbott, J L., Angert, C., Park, J H., and Kohlhausen, D

1

Student paper

“Customer-Centric Science: Reporting Significant Research, Results with Rigor, Relevance, and Practical Impact in Mind,” Organizational Research Methods (13:3), pp.

Original source

“Customer-Centric Science Reporting Significant Research, Results with Rigor, Relevance, and Practical Impact in Mind,” Organizational Research Methods (13:3), pp

3

Student paper

Rai, A., Patnayakuni, R., and Patnayakuni, N.

Original source

Rai, A., Patnayakuni, R., & Patnayakuni, N

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Student paper

E., Lo, J., and Preston, D.

Original source

E., Lo, J., & Preston, D

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Student paper

“An Empirical Investigation of the Relationship of IS Strategy with Firm Perfor- mance,” Journal of Strategic Information Systems (20), pp.

8/11/19, 10(43 AMOriginality Report

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mance,” Journal of Strategic Information Systems (20), pp.

Original source

An empirical investigation of the relationship of IS strategy with firm perfor- mance, Journal of Strategic Information Systems 20(4)

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Student paper

Khuntia, J., Whitaker, J. W., Mithas, S., and Kaushik, A.

Original source

Khuntia, J., Whitaker, J W., Mithas, S., and Kaushik, A

1

Student paper

“Strategic Focus, Client Satisfaction and Firm Performance: Evidence from Offshore Business Process Outsourcing Providers,” in Proceedings of the 2014 Annual INFORMS Conference on Information Systems and Technology, S.

Original source

“Strategic Focus, Client Satisfaction and Firm Performance Evidence from Off- shore Business Process Outsourcing Providers,” in Proceedings of the 2014 Annual INFORMS Conference on Information Systems and Technology, S

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Student paper

Rao and S.

Original source

Rao and S

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Student paper

Smith (eds.), San Francisco: Information Systems Society.

Original source

Smith (eds.), San Francisco Information Systems Society