Bijoy Bordoloi

A framework for assessing the relationship between information technology investments and firm performance

Abstract: There have been several attempts in the past to assess the impact of information technology on firm performance that have yielded conflicting results. Researchers have been unable to conclude that IT spending by an organization results in increases in key performance indicators. Two major recent studies have attempted to address the issue by putting greater emphasis on the theoretical underpinnings of the solution to the problem, although they chose different theoretical frameworks. The present study extends that work to yield a framework that shows the relationship between firm performance and both IT and corporate investments. The data used to validate the framework exceeds that used in previous analyses in both quality and quantity, thereby permitting appropriate statistical analyses. A large database consisting of over 2,000 observations of 624 firms was constructed, using data provided by the International Data Corporation, Standard & Poor’s Compustat, and Moody’s. This allowed us to pose the following research questions: (a) Can the relationship between sets of investment measures and firm performance be demonstrated (as opposed to individual measures)? (b) How are IT investments related to a firm’s market value, market share, sales, and assets? and (c) Is there a difference in the effect of computer capital and noncomputer capital? Seven measures of firm performance were initially incorporated as outputs in the framework, related to sales, assets, and market value. Similarly, seven input measures of IT and corporate investments were initially included. Two output measures and one input were eventually eliminated to formulate a refined framework with strong explanatory power. After careful editing, canonical analyses were performed, resulting in several important findings. Both IT and corporate investments have a strong positive relationship with sales, assets, and equity, but not with net income. Spending on IS staff and staff training is positively correlated with firm performance, even more so than computer capital.

Evaluating security threats in mainframe and client/server environments

Abstract Recently, client/server computing has become a serious alternative to mainframe computing in industry. It offers some benefits, but it also exposes the computing environment to additional risks: the flexibility that makes it attractive can also make it more vulnerable to security breaches. This paper reports the results of a study that explored how companies that were moving from a mainframe environment to one that included client/server technology, evaluated and took measures to protect against potential information security threats. Apparently, although security measures in the mainframe environment have been well implemented relative to their perceived threat, the same cannot be said about the client/server environment. Certain critical areas in the client/server environment in which security exposure is likely are discussed. Organizations must become aware of these critical areas and ensure that appropriate security measures are implemented to reduce the possibility of loss.

The role of software patents in sustaining IT-enabled competitive advantage: a call for research

A number of information technology (IT) researchers have examined IT and sustained competitive advantage. However, the relationship between software patents and IT sustained advantage is often unclear and incomplete. This paper reviews some of that research, pointing out various research contributions while indicating some of the problematic issues in dealing with competitive advantage and software patents. In addition, we highlight a number of software-based patents that have been awarded to organizations in diverse industries, including some that provide researchers and executives with insight into how organizations are protecting unique business methods with software patents. We also pose some intriguing research questions, including determining why firms do in fact patent software, and investigating the potential differences in doing business globally involving countries that either take steps to protect software assets with patents versus those that do not. Based on the information presented, we anticipate that IT researchers would be more open to investigating the relationship between software patents and sustaining IT-based competitive advantage.

A framework to limit systems developers' legal liabilities

Defects in computer-based systems (CBS) can adversely affect systems development efforts and can present serious legal challenges to developers. Of particular significance are the torts of strict products liability and negligence that can arise as a result of harm or injury resulting from, among other things, poor testing of systems, inadequate warnings, or failure to use state-of-the-art technology. The threat of injury has caused federal and state agencies and legislatures to consider seriously courses of action to inhibit the more injurious effects of such systems. This paper examines these two torts in some detail and illustrates how CBS developers could be threatened as a result of defective systems. We also present a framework for injury assessment and reduction of legal liability that can be used to guide CBS developers in assessing the possibility of injury resulting from development flaws. Further, the framework aids developers in their decision-making process by identifying appropriate measures to take to reduce their legal liability arising from what could be determined to be faulty systems development efforts. In addition, the use of the measures suggested by our framework might provide safer systems to avoid harming individuals.

Copyrighting computer software: the “look and feel” controversy and beyond

Abstract In todays society, the development of new technologies generally outpaces the laws and regulations created to protect them. This is precisely what has happened in copyright cases involving the copyrightability of the “look and feel” of a program (the visual displays and specific command keystrokes that make a computer program unique). Currently, regulatory agencies and judicial interpretation of copyright law is not precise, leading to uncertainty and a lack of uniformity. Until the courts and/or agencies reach some consistency in their rulings, software developers and individual programmers are left in a quandary as to when charges of copyright infringement might be served. Although it may be difficult to achieve consistent interpretation, US case law does provide some guidance that can aid US developers in not only protecting their work, but also avoiding charges of copyright infringement. This paper examines the current US copyright laws and limitations with special attention to “look and feel.” International copyright aspects, as outlined in the Berne Convention, the General Agreement on Tariffs and Trade (GATT), and the North American Free Trade Agreement (NAFTA) are also addressed. It also reviews several cases that deal with (or have somehow impacted) questions surrounding “look and feel,” along with commentaries on their individual impacts, evaluates where copyright laws stand today, and discusses some possible alternatives for software developers based on the results of recent cases.

Relational or Object‐oriented or Hybrid?

The relational model and relational database management systems have been the de facto industry standard for organizing and managing data in most computer‐integrated manufacturing environments. In recent years, however, some new database technologies have emerged – namely, object‐oriented and hybrid or extended relational – making the job of the CIM managers more difficult with regard to selecting a database technology that would be most appropriate for their operations. Presents a framework for selecting an appropriate DBMS type in a CIM setting depending on a company′s ENTITY and DATA needs. It is hoped that the presented framework would prove useful to practising managers.

Desirable characteristics of information resource dictionary systems

The proliferation of Information Resource Dictionary System (IRDS) products spurred the issuance of national and international standards in 1988 and 1992. Even so, there are numerous features of IRDSs that are not covered by the standards. This paper seeks to provide a comprehensive set of criteria for evaluating the functional capabilities of the systems based on standards as well as the relevant published literature. The framework should benefit both potential adopters of IRDS systems who need to compare competing systems, as well as vendors who need to make design decisions on the functionality of their products.

Economics of offshore outsourcing: anything new under the sun?

Based on International Economics, this paper provides a theoretical perspective of the economic rationale behind the current phenomenon of offshore outsourcing of IT related activities.

Sarbanes-oxley and IT: a primer for computer personnel researchers

This session will take the format of part tutorial, part workshop. In the tutorial portion, we provide a brief overview of Sarbanes-Oxley (SOX) and ground this in things IT researchers are already familiar with (e.g., the Capability Maturity Model). Then we will share insights gleaned from a corporate roundtable held at SIUE on October 21, 2005, regarding the effects of SOX on IT. Finally, in the workshop portion of the session, we present two ideas for research that stem from SOX activity in IT organizations and open the floor for additional ideas and discussion.