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 fi rm in the short term. However, investment in information systems is as sociated with the maturity of information systems, which in turn is re lated to improved performance. This indicates that investment in infor mation systems pays off but only in the long term, because of the long learning and development period necessary to take full advantage of t hem. This finding is supported by the fact that experienced and advanc ed users of information systems are able to produce better application s 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 dan gerous to oversimplify the problem and give general guidelines concern ing the level of investment required in information systems. Heavy inv estment in information systems does not guarantee profitability. Howev er, if wisely used to support the firm in its strategies they can impo rt a sustainable competitive edge.