Information Systems Frontiers

, Volume 14, Issue 2, pp 237–259 | Cite as

Effects of firm and IT characteristics on the value of e-commerce initiatives: An inductive theoretical framework

  • Francis Kofi Andoh-Baidoo
  • Kweku-Muata Osei-Bryson
  • Kwasi Amoako-GyampahEmail author


We explore the theoretical foundations on how firm and IT characteristics explain the market value variations in e-commerce initiatives by examining the announcements of 946 e-commerce initiatives in the public media. Our approach combines the Event study methodology and Decision tree induction to examine the main and interaction effects of IT and firm characteristics on Cumulative Abnormal Returns (CAR). In particular, we generate complex interaction models that can guide e-commerce investment decisions so managers can know, for example, which combination of IT and firm characteristics are more likely to be viewed positively by investors. The selected study variables as well as explanation of the proposed framework are informed by innovation, resource-based view, transaction cost economics and complementarity theories. We have inductively developed a set of propositions that can be deductively tested to assess the validity of our proposed theoretical framework. Hence our study provides an initial roadmap for theory development on e-commerce and CAR.


E-commerce announcements Market value CAR Event study IT and firm characteristics Decision tree induction Inductive theory 


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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  • Francis Kofi Andoh-Baidoo
    • 1
  • Kweku-Muata Osei-Bryson
    • 2
  • Kwasi Amoako-Gyampah
    • 3
    Email author
  1. 1.Department of Computer Information Systems & Quantitative MethodsUniversity of Texas—Pan AmericanEdinburgUSA
  2. 2.Department of Information Systems & The Information Systems Research InstituteVirginia Commonwealth UniversityRichmondUSA
  3. 3.Information Systems and Operations Management DepartmentUniversity of North Carolina at GreensboroGreensboroUSA

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