Can information technology enable profitable diversification? An empirical examination |
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| Affiliation: | 1. HP2 Laboratory, Grenoble-Alpes University, 38000 Grenoble, France;2. INSERM, U1042, 38000, Grenoble, France;3. LAMHESS EA 6312, Universities of Toulon and Nice Sophia–Antipolis, France;4. Centre de ressources et de compétences de la mucoviscidose (CRCM), Hôpital Renée Sabran, Giens, France;5. Centre de ressources et de compétences de la mucoviscidose (CRCM), Clinique Universitaire de Pneumologie, Pôle Thorax et Vaisseaux, CHU Grenoble, France;1. Division of Infectious Diseases, Washington University School of Medicine, 4523 Clayton Avenue, Campus Box 8051, St. Louis, MO 63110, United States;2. Division of Pulmonary and Critical Care Medicine, Washington University School of Medicine, 4523 Clayton Avenue, Campus Box 8052, St. Louis, MO 63110, United States |
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| Abstract: | Investments in information technology (IT) are now a major part of corporate investment, and the management of IT is essential to performance. In general, IT is expected to have performance effects when it is judiciously used to complement existing corporate capabilities. In this research, we examine how IT can complement diversification strategy. Using hypotheses and measures suggested by information processing theory and the theory of corporate strategy, testable hypotheses are derived to examine how IT can complement diversification. Results suggest that spending on computer technology significantly complements a strategy of unrelated diversification. Implications for theory and practice are discussed. |
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