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Information Technology Expenditures, Organizational Capital and Firm Performance
Chaur - Shiuh Young,
National Cheng Kung University
Liu - Ching Tsai, National Chia - Yi University
ABSTRACT. Our objective is to examine the mediating effect of Organizational Capital on the impact of Information Technology (IT) expenditures on firm performance. Using the mediated regression method and a sample of listed Taiwanese firms, empirical results provide statistical support for our argument that through Organizational Capital, IT expenditures indirectly contribute to firm performance, measured by Tobin’s Q. The results help explain inconsistencies reported by previous studies on the IT-performance relationship.
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