Assessing the impact of information technology on firm performance using canonical correlation analysis

Abstract

During the recent years, there have been a lot of researches trying to show the positive or lack of correlation between information technology (IT) and firm performance. Researchers and practitioners everywhere have applied different approaches and criteria to do so. In this paper, the effects of IT usage on 200 Iranian car part suppliers are analysed. Canonical correlation analysis reveals a statistically significant relationship between one set of variables consisting seven indices of IT usage, and the other set of variables consisting three company performance indices. Accordingly, the results show that correlation between company performance and the degree of use of IT in the planning, administration and pecuniary affairs is stronger than the other aspects of IT usage.

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