Beruflich Dokumente
Kultur Dokumente
Hilman Ramadhan
Suhardi
I. INTRODUCTION
Information Technology (IT) has become one significant
driving force of business. Information technology provide
business with capability to increase their effectiveness and
efficiency. Those capability can be obtained by utilizing
sufficient information technology with respect to the firms
condition. Information technology resources that deliver the
capabilities require certain amount of effort to be deployed.
Also the realization of the capability needs proper synergy of
people and process. The capability hopefully will increase the
firm performance.
In order to realize the IT capability, enterprise must first invest
the resources. However investment in IT resources doesnt go
linearly with the firms performance. Higher IT investment
doesnt guarantee the increase in firms performance. There
conditions called IT Productivity Paradox proposed by past
researchers. Earlier studies examining the correlations between
IT investment and firms performance resulted in zero or
slightly negative correlation [1]. However, the latter empirical
studies show positive correlation [1]. [2] proposes five possible
reasons for this phenomenon, including mismeasurement of
= ( )
( = 1,2, , )
(1)
=
(2)
= ( ; ) + (1 )1
(3)
(4)
(5)
= 0
(9)
+ (1 )1
(7)
Eq. (6) and (7) will be used to determine the unknown constant
, 0 , 1 , 2 , and 3 .
(10)
(11)
= 0 1 2 + (1 )1
(8)
Constant
Initial Value
0,5
D. Data samples
Based on the partial adjustment method described before, there
are three factors involved in the modeling. Those are (the
traditional capital) and (the traditional labor) in two factors
model, and add (the IT-capital) in three factors model. Those
factors are determined by extracting the companys annual
report.
The K t factor, traditional capital, is retrieved by comparing with
the IT infrastructure spending. Based on Association of
American Railroads Total Annual Spending 2013 Data, the IT
spending of the company is assumed at 6.8%. This value is
obtained by summing the percentage of the computer
equipment spending and other track and property spending
which include communication system. The actual amount of K t
is the percentage of non-IT spending to the total company
equity.
The companys labor is classified in non-IT labor and IT labor.
The proportion of the non-IT labor to total labor is used to
determine the Lt factors. The Lt uses the non-IT labor to total
labor proportion of the total labor cost.
The It factors is the total IT spending which include the IT
infrastructure and IT labor. The amount of It is obtained by
summing the amount of IT infrastructure spending based on the
percentage on IT spending assumption, and the IT labor cost
based on the proportion of IT labor with total labor to the total
labor cost.
All units in trillion rupiah.
5,16
5,20
5,65
8,35
13,62
15,74
0,97
1,71
0,75
0,64
0,75
0,97
0,39
0,39
0,42
0,61
1,00
1,16
0,273727105
Value
0,54745421
0,453122474
1,981723317
1,72985897
SSE
0,111895657
Year
2009
2010
2011
2012
2013
2014
Variable
Year
2009
2010
2011
2012
2013
2014
0,377961
0,816608
0,207055
0,16391
0,74781
0,676419
0,624537
0,443921
0,548852
0,464785
1,087783
0,531079
III. RESULT
Non-linear regression is done to the Eq. (6) and (7) to determine
the constant value. The initial value of the constant is using the
value of Table 1 Initialization. Following is the result of the
regression.
Table 3 Two Factors Regression Result
Value
0,6
0,4
0,2
0
2008
2009
2010
2011
2012
2013
2014
2015
Variable
0,342604162
0,024892316
1,476619006
0,006894137
SSE
0,158992824
Three Factors
Two Factors
factors model mostly has lower performance ratio than the two
factors model. However, on the last data at 2014, the three
factors model shows higher performance ratio than the two
factors model.
The graphics shows that the performance ratio of the firm by
using IT resources are lower than using traditional resources.
However, this conditions may happen due to the companys
strategy. In 2010 until 2013, the company may focus on
increasing the operational capability which mostly concerned
about the railway transport infrastructure. On those years the
company seems not concerning the IT resources too much. This
can be seen as the railway service of the company is improved
based on the annual report. The company is focusing on
improving the railway transport infrastructure to increase the
firm performance. In 2014, the company is assumed to already
have good railway transport infrastructure, so it change its focus
on IT resources to maintain the railway transport infrastructure.
The companys performance ratio in 2014 using three factors
model is higher than the two factors model. The company IT
resources is improving the companys performance in 2014.
IV. CONCLUSIONS
The performance ratio of the IT resources involvement in firms
performance doesnt have significant change in 2009-2014.
This may be happened as the company is focusing on improving
their traditional capital such as railway transport infrastructure.
However, the impact of IT resources can be seen as the
company is focusing on maximizing their IT usage. IT
resources does affect the firm performance. The company can
be said as using the IT resources in their business and affected
by it.
The data used in this paper is data at 2009-2014. The regression
result may not sufficient to best fit the function. In order to