Closed-loop view of information system business value: bidirectional relationship between IT/IS investments and firm performance

The research in Information System Business Value (IS BV) prevalently focuses on the relationship between IT investments and firm performance. However, only very few studies investigate how firm performance influence the decision about IT investments. We will use a complex mixed method research design which will result in an integrated closed-loop model of IS BV. More precisely, we will use the aspiration-performance gap theory to explain how and to what extent companies invest in IT assets and how these IT assets consequently create value through which the firm increases its performance. In order to meet the research objectives, we will use quantitative panel data analysis, longitudinal multiple-case study research, and confirmatory structural equation modelling.

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