earticle

영어

Online brokerage is growing rapidly nowadays, and revenue from online brokerage service is over the half of total revenue of security firms in Korea. Therefore, management of service quality of the brokerage system has become a crucial managerial issue. Additionally, because service quality has a multi- dimension characteristic, IT investment for each dimension may be different. Also, the consequences of IT investment are determined by not only amount of IT investment but also firm’s non-IT capability. In previous studies, the results of IT investment were explained without consideration ‘of the multi-dimension characteristic, and the influence of the capability on process was not specifically investigated. In this paper, we investigate the IT investment
decision and the resulting performance of the firm, and how firm capability influences firm performance. These factors are investigated analytically and empirically by using balanced panel data. According to our study, IT investment and service quality are differentiated in each dimension by different characteristics. Also high capable firms invest more in IT systems than weaker firm rather than taking advantage of their capability, and their financial performance is dominant. Also, we found that a firm’s non-IT capability moderates the service quality effect on performance. This means high capability firm can get better financial performance with same level of service quality. In conclusion, a highly capable firm provides better service quality and has dominant financial performance despite spending more on IT. This superiority in financial
performance is caused by firm capability, which influences the IT conversion process two times. A low capability firm cannot have the same level of financial performance as a high capability firm only by IT investments. A firm’s non IT capability is a crucial factor in the service industry, and IT investment is not enough. Thus, firms have to build up capability to hold a dominant position in the market.