A Conceptual Framework to Examine the Time-Lag Effect of ICT Investment on Firm Performance

This study proposes a conceptual research framework to explain how ICT investment influences firm performance by integrating two theoretical foundations: the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT). The RBV highlights ICT as a strategic resource and DCT emphasizes a firm’s ability to adapt and reconfigure ICT resources in response to changing environments. Recognizing that ICT investments involve high initial costs and delayed payoffs, the framework incorporates time-lag effects, suggesting that the impact of ICT investment may only materialize after several years. The study develops hypotheses to capture both immediate and delayed effects of ICT investment across time periods from year t to t-7. By aligning theoretical perspectives with the time-sensitive nature of ICT returns, the framework offers a comprehensive view of how ICT investment contributes to long-term firm performance. The findings are expected to provide practical guidance for decision-makers and future researchers in evaluating and managing ICT resources for sustainable competitive advantage.