Information Systems and Firm Competence: Evidence from Chinese Listed Companies

By using unbalanced panel data set for 76 firms in Chinese listed companies, this paper empirically study the relationship between information systems and firm competence under Chinese context with GLS regression method. This study draws such conclusions: (1) in the short term, the use of information systems has statistically significant negative impact on firm competence. (2) In the short term, the use of information systems has statistically significant negative impact on firm competence; in the relative long term, as year by year, such negative influence decreases gradually, and shows U shape relationship. In the long term, the use of information systems has statistically positive impact on firm competence.