Information Technology and Business Value in a Global Economy: Do Information Technology Investments Pay Off In a Developing Economy?

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Understanding the business value of IT has mostly been studied in developed countries, but because most investment in developing countries is derived from external sources, the influence of that investment on business value is likely to be different. The authors test this notion using a two-layer model. They examine the impact of IT investments on firm processes, and the relationship of these processes to firm performance in a developing country. Their findings suggest that investment in different areas of IT positively relates to improvements in intermediate business processes and these intermediate business processes positively relate to the overall financial performance of firms in a developing country.

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