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Evaluating Information Technology Investments in Emerging Economies Using Activity‐Based Costing
Author(s) -
Roztocki Narcyz,
Weistroffer Heinz Roland
Publication year - 2004
Publication title -
the electronic journal of information systems in developing countries
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.41
H-Index - 18
ISSN - 1681-4835
DOI - 10.1002/j.1681-4835.2004.tb00123.x
Subject(s) - activity based costing , industrial organization , information technology , business , value (mathematics) , emerging markets , risk analysis (engineering) , computer science , marketing , finance , operating system , machine learning
Many firms in emerging economies invest in information technology primarily with the objective of protecting their cost advantages. This paper presents a framework for evaluating information technology investments by integrating the value chain model with activity‐based costing. The proposed four‐step approach is illustrated with a numerical example of a hypothetical manufacturing company seeking improvements in its cost structure.