Information Technology (IT) investment by firms in India and across globe is forecasted to increase at a good pace as per the recent reports published by various market research firms. However, very few research studies have been conducted to explain the factors that determine the level of IT investment by firms. In this research, we study the determinants of IT in-vestment at the firm level in Indian context. Data from 239 Indian firms over 2007-2010 period were studied using multiple linear regression analysis. Results of the study reveal IT capital stock and slack resources as the determining factors of the level of future IT investment. Sales growth, financial leverage, and industry competition etc. does not influence IT investment of firms in India. The results can provide useful guidance to IT producers while planning their operations.
|Journal||Journal of Information Technology Management|