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Information technology and survival of firms

A review of economic literature

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Abstract

This paper intends to unravel the theoretical literature about the relationship between information technology (IT) and survival of firms through assessing and comparing the existing literature about both concepts. A selective review of relevant theoretical literature is embarked upon. In this regard, first some theories about the survival of firms such as product life cycle theory, transaction cost theory and traditional economic theory are reviewed, then the paper explores a relationship between them and information technology theories. It is observed that IT through increasing profit, learning, and expected value of firms and decreasing uncertainty, minimum efficient scale and transaction and fixed costs could affect the survival of firms.

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Authors and Affiliations

  1. Department of Economics, Khatam Institute of Higher Education, Tehran, Iran

    Mohammad Ali Jamali & Hatra Voghouei

  2. Department of Economics and Management, University Kebangsaan Malaysia, Selangor, Malaysia

    Nor Ghani Md Nor

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  1. Mohammad Ali Jamali
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  2. Hatra Voghouei
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  3. Nor Ghani Md Nor
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Correspondence to Mohammad Ali Jamali.

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Jamali, M.A., Voghouei, H. & Md Nor, N.G. Information technology and survival of firms. Netnomics 15, 107–119 (2014). https://doi.org/10.1007/s11066-014-9089-9

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