Lin, T. Y., Lyu, J., and Cheng, Y. Y. 2010. An Exploratory Study of E-Business Performance Using Hierarchical Metrics Framework. NTU Management Review, : 117-146
Tsai-Yuan Lin, Professor, Graduate School of Business and Operations Management, Chang Jung Christian University
Jrjung Lyu, Professor, Department of Industrial and Information Management, National Cheng Kung University
Yun-Yao Cheng, Doctoral Student, Graduate School of Business and Operations Management, Chang Jung Christian University; Lecturer, Department of Business Administration, Ta-Tung Institute of Commerce and Technology
Abstract
For many years, the Taiwan government has been supporting e-business initiatives to improve the infrastructure of information and communication technology (ICT). To justify the performance of the proposed initiatives, this study provides a hierarchical performance measure and metrics framework to analyze the relationships between information technology investments and subsequent performance from firm level, industry level and country level respectively. Results of the study indicate that firms investing in e-business projects have significantly improved their operation capability, alone with increase on the productivity. On the industry level, the impacts of information technology investments on productivity are different among industries, and a three-year time lag effect has been observed in manufacturing industry. While there is no sufficient evidence to demonstrate the influence of information technology investments on macroeconomic performance indicators, there is, however, a positive feedback effect on productivity and information technology investments in both the industry level as well as the country level.
Keywords
e-business initiative IT investment performance indicator