| Abstract: | In this paper is presented an empirical study of the effect of two external environment factors: i) the ‘generalized’ competition the organization faces, which, according to M. Porter’s ‘Five Forces Model’ of competition, consists of the bargaining power of its suppliers, the bargaining power of its buyers, the competitive rivalry from its competitors, the threat of new entrants and the threat of substitute products or services, and ii) the strategy the organization follows for responding to pressures of its external environment, on the business value generated by ICT investment. The study is based on firm-level data from Greek companies, which have been collected through a survey using a structured questionnaire in cooperation with ICAP, one of the largest business information and consulting companies of Greece. Using these data are constructed econometric models of output, based on the microeconomic production theory, and in particular on the Cobb Douglas production function. From these models concerning the above generalized competition dimensions it is concluded that higher level of bargaining power of suppliers results in higher ICT business value. Also concerning strategy it is concluded that organizations following a strategy of frequent introduction of new innovative products and services enjoy higher ICT business value. |
|---|
Greek