IT innovations in IT industries: Does IT pay off?

Emil Boasson, Vigdis Boasson

Research output: Contribution to journalConference articlepeer-review

1 Scopus citations


In the classroom, students tend to ask the question: why do we need to study information technology (IT)? In the real business world, corporate decision-makers constantly ask the question: why do we need to invest in IT? Does it pay off? In this paper, we investigate how the stock market values a firm's IT innovations in order to gain competitive advantage. In other words, we examine the role of IT innovations in the stock market valuation of a firm's expected future cash flows. Our findings indicate that firms that are IT innovators are valued higher than their industry competitors. Clearly, IT innovations seem to pay off in the stock market. In this way, we show that learning IT skill sets in the classroom is important for undertaking IT innovations in the real business world.

Original languageEnglish
JournalProceedings of ISECON
StatePublished - 2005
Event22nd Annual Information Systems Education Conference: IS and All That Jazz, ISECON 2005 - Columbus, OH, United States
Duration: Oct 6 2005Oct 9 2005


  • IT education
  • IT innovation
  • Information technology
  • Intangible assets
  • Market value


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