INVESTMENT IN INFORMATION-SYSTEMS AND THE FINANCIAL PERFORMANCE OF THE FIRM

The results of this study show that investment in information systems is not necessarily related to superior financial performance of the firm in the short term. However, investment in information systems is associated with the maturity of information systems, which in turn is related to improved performance. This indicates that investment in information systems pays off but only in the long term, because of the long learning and development period necessary to take full advantage of them. This finding is supported by the fact that experienced and advanced users of information systems are able to produce better applications and services with a high impact on organizational processes. On the other hand, investment in information systems will depend on the size and type of the firm and its financial strategies. It is therefore dangerous to oversimplify the problem and give general guidelines concerning the level of investment required in information systems. Heavy investment in information systems does not guarantee profitability. However, if wisely used to support the firm in its strategies they can import a sustainable competitive edge.