How valuable is information and communication technology? A study of emerging economy enterprises

Yadong Luo, Juan Bu

Research output: Contribution to journalArticle

38 Citations (Scopus)

Abstract

Anchored at the knowledge management perspective, we address how information and communication technology (ICT) improves the productivity of emerging economy enterprises. We present the logic that ICT enhances firm performance because it is an important channel or facilitator of effective knowledge sharing and knowledge integration. We further argue that the conditions characterizing an emerging economy (i.e., a country's economic development) and emerging economy businesses (i.e., internationalization and quality assurance) would affect the extent to which ICT contributes to knowledge management, and thus to firm performance. Our hierarchical linear modeling analysis of 6236 firms from 27 emerging economies lends support to our arguments and predictions, suggesting that ICT is a critical investment that generates satisfactory returns for emerging economy enterprises, yet this investment-return relationship is further contingent upon the macro- and micro-level conditions facing these enterprises. ICT actually adds more value to productivity when a focal emerging economy is less economically developed, and when a focal firm reaches foreign markets or its quality control and assurance is superior.

Original languageEnglish (US)
Pages (from-to)200-211
Number of pages12
JournalJournal of World Business
Volume51
Issue number2
DOIs
StatePublished - Feb 1 2016

Fingerprint

Emerging economies
Information and communication technology
Productivity
Knowledge management
Firm performance
Quality assurance
Hierarchical linear modeling
Internationalization
Economic development
Prediction
Facilitators
Knowledge integration
Logic
Quality control
Knowledge sharing

Keywords

  • Emerging market
  • Firm competitiveness
  • ICT
  • Knowledge management

ASJC Scopus subject areas

  • Business and International Management
  • Marketing
  • Finance

Cite this

How valuable is information and communication technology? A study of emerging economy enterprises. / Luo, Yadong; Bu, Juan.

In: Journal of World Business, Vol. 51, No. 2, 01.02.2016, p. 200-211.

Research output: Contribution to journalArticle

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