Systematic Differences in Firm’s Information Technology Signaling: Implications for Research Design

Abstract

Because research programs investigating IT-related phenomena are hindered by limitations in the availability of archival data, researchers have used a variety of data collection strategies including the gathering of firms’ IT signaling via press releases to the media. Little is known, however, about firms’ IT signaling propensities. Here, contents of firms’ press releases and annual reports are coded to test a model explaining a firm’s propensity to signal stakeholders about its IT-related activities. Results demonstrate that firms transmitting greater numbers of IT signals tend to be low performers in their industries, tend to reside in industries characterized by a transform industry IT strategic role and tend to be larger. Implications of these findings for research design are provided