The Impact of It Investment on Firm Performance in Bangladesh- a Resourcebased Perspective

Abstract

Using the RBV as a theoretical backdrop, the study is intended to begin the line of inquiry: Do IT asset matter and improve the firm peeformance? The firms' audited annual reports were collected during the period of 2007- 2017 from 49 listed manufacturing firms of four manufacturing industries in DSE, Bangladesh. This inductive research used panel data estimation technique for unbalanced panel data to measure, describe, and analyze the firm peeformance. The results reveal a mixed behavioral effect of IT asset on fum peeformance. The positive influence of IT asset on firm peeformance suggests that a firm should invest to develop IT infrastructure in order to effectively promote firm IT capability and fum peeformance. However, inverse relationship between IT asset and firm peeformance suggest that IT intensive stocks are not peeforming well in the stock market of Bangladesh. The results should be of interest to the practitioners and managers as well as IT researchers to manage and plan the appropriateratioofITassettototalassetsforsecuringsustainablecompetitive advantages over their rival firms. The study fills a gap by opening a new avenue for explaining IT asset's contribution to firm peeformance from RBV perspective in the context of Bangladesh as well as extends the literature in this field.