A review of technological investment and its effects on firm’s performance

This paper reviews an extensive body of literatures to investigate technological investment and firm’s performance. It provides a comprehensive viewpoint on issues related to technological investment and how it affects firm’s performance. Despite the fact that many researchers studied technological...

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Bibliographic Details
Main Authors: Stores, Fatima Sani, Abdulah, Nor Hazana, Mohd Diah, Mohd Lizam
Format: Conference or Workshop Item
Published: 2013
Subjects:
Online Access:http://eprints.uthm.edu.my/5796/
http://eprints.uthm.edu.my/5796/1/3._Fatima_Sani_Stores.pdf
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Summary:This paper reviews an extensive body of literatures to investigate technological investment and firm’s performance. It provides a comprehensive viewpoint on issues related to technological investment and how it affects firm’s performance. Despite the fact that many researchers studied technological investment, but there are inadequate investigation focusing on technological investment and firm’s performance particularly in Malaysia. The majority of published studies in recognizing databases carried out their researches with primary data sets and mainly focused on information technology (IT) investment. Another important issue that has not been properly investigated is what constitutes technological investment and its relationship with firm performance in Malaysia. Finally, this paper develops a framework that explains the relationship between technological investment and firm performance. Technological investment is viewed in terms of operational and administrative technology investment while firm’s performance is viewed in terms of return on investment and return on assets.