The Role of IT on Firm Performance

Abstract

The impact of Information Technology (IT) on firms has been widely discussed in many studies. Regarding the role of IT on Firm Performance, researchers have reported a mixed result. Therefore, it encourages that the essential character of IT from the perspective of firm performance needs to be explored systematically. It was needed to reveal, in what facet of firm performance and under what circumstances IT could play a significant role. This research contributes by providing a balanced perspective on the role of IT on firm performance. The researchers could have a view from the right angle about the role of IT on firm performance. A systematic literature review was conducted to get a comprehensive perspective regarding the role of IT on Firm Performance. The aspects extracted and analyzed were mainly related to: (i). Firm performance attributes, (ii). Domains supported by IT, (iii). IT-Firm Performance Circumstances. Based on these aspects several analysis and conclusions were drawn. First, IT contributes to achieving strategic alignment, organizational agility and provide support for business. Since they were correlated strongly with firm performance. Second, firm performance could be measured based on two perspectives: Financial and non-financial. Third, IT could contribute more effectively in collaboration or combining with other resources. The elaboration of these findings and suggestions for further research were discussed in this paper.

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