Information technology investment and return on assets: operational efficiency, IT governance, and digital transformation in Indonesian technology firms
DOI:
https://doi.org/10.47065/imj.v6i2.583Keywords:
Digital transformation, Information technology investment, IT governance, Operational efficiency, Return on assetsAbstract
This study examines the impact of Information Technology (IT) Investment on Return on Assets (ROA) by positioning Operational Efficiency as a mediating variable and IT Governance and Digital Transformation as moderating variables in technology firms. The objective is to explain the mechanism through which IT investment is converted into financial performance. A quantitative explanatory approach was applied using five-year (2021–2025) panel data from technology-sector companies listed on the Indonesia Stock Exchange, analyzed with the Fixed Effect Model, the Sobel Test, and Moderated Regression Analysis (MRA) using EViews 12 and Python. The results show that IT Investment significantly increases Operational Efficiency, which in turn enhances ROA, and that Operational Efficiency fully mediates the relationship between IT Investment and ROA. IT Governance and Digital Transformation significantly strengthen the link between investment and efficiency. The findings confirm that the economic value of IT depends on internal efficiency and structural readiness. It is therefore recommended that managers align technology spending with efficiency optimization, strengthen IT governance, and pursue an integrated digital transformation strategy to ensure sustainable financial performance. This research enriches the IT Business Value literature by providing a strategic mediation–moderation framework for the IT–ROA nexus.
References
Adnan, A., Ndaumanu, R. I., Ta, S. P., & Tjiptabudi, F. M. H. (2025). Utilization of Cost and Benefit Analysis for Determining the Feasibility of Information Technology Investment. JITU: Journal of Informatic Technology And Communication, 9(1), 30–38. https://doi.org/10.36596/jitu.v9i1.1788
Anugrafianto, T. R., Septianingsih, W., & Permana, A. W. (2024). The Utilization of Digital Technology in Improving Business and Education Services: A Case Study of PT Kombas Digital International. El-Hamra Journal: Education and Society, 9(3), 320–328. https://doi.org/10.62630/elhamra.v9i3.352
Askurun, Y. S., & Andriani. (2021). Factors affecting profitability in Islamic banks in Indonesia. WADIAH, 5(1), 61–85. https://doi.org/10.30762/wadiah.v5i1.3177
Bharadwaj, A. S. (2000). A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation1. MIS Quarterly, 24(1), 169–196. https://doi.org/10.2307/3250983
Devaraj, S., & Kohli, R. (2003). Performance Impacts of Information Technology: Is Actual Usage the Missing Link? Management Science, 49(3), 273–289. https://doi.org/10.1287/mnsc.49.3.273.12736
Esquivias, M. A., & Harianto, S. K. (2020). Does competition and foreign investment spur industrial efficiency?: firm-level evidence from Indonesia. Heliyon, 6(8), e04494. https://doi.org/10.1016/j.heliyon.2020.e04494
Faizati, L. A., & Hwihanus. (2024). Analysis of the Influence of Cash Turnover, Receivables Turnover, and Inventory Turnover on the Return On Assets (ROA) of PT Fast Food Indonesia for the Period 2019 – 2022. Equivalent: Journal of Economics, Accounting and Management, 2(2), 292–306. https://doi.org/10.61994/equivalent.v2i2.377
Hirawan, Z., Andini, D., Sobari, A., & Ronalisa, T. (2025). Analysis of the Company’s Financial Performance Classified Group Consumer Cyclicals On the Indonesia Stock Exchange for the 2021-2023 Period. The World of Business Administration Journal. https://doi.org/10.37950/amh00z41
Ihsanuddin, M., Supriyanto, S., Oktriyani, O., Akhrima, N., Nazila, N. A., Fauzia, A., Nurlaila, L., Nurmuhammad, R. Z., Hadida, V. S., & Sugiharto, S. (2024). The Implementation of Accounting Information Systems on the Financial Performance of Manufacturing Companies in Indonesia. Eqien - Journal of Economics and Business, 13(04). https://doi.org/10.34308/eqien.v13i04.1926
Judijanto, L. (2024). Analysis of Operational Efficiency, Risk Management, and Resource Management on the Sustainability of Corporate Financial Performance in Indonesia. Western Science Journal of Accounting and Finance, 3(03), 254–264. https://doi.org/10.58812/jakws.v3i03.1601
Judijanto, L., Hiswara, A., Aini, M. A., & Nanjar, A. (2024). The Effect of Internet of Things Implementation on Business Decision Making in Technology Companies in Jakarta. Multidisciplinary Journal of Western Science, 3(03), 389–397. https://doi.org/10.58812/jmws.v3i03.1075
Kamsariaty. (2024). Human Resource Management of PT Pulau Seroja Jaya Jakarta in Increasing Loading and Unloading Activities at Marunda Port, North Jakarta. Interdisciplinary Explorations in Research Journal, 2(3), 1721–1727. https://doi.org/10.62976/ierj.v2i3.781
Kurniawan, A. (2024). Analysis of financial statements to measure the financial performance of PT. Nusa Digital Karya Technology Tbk. Journal of Economics and Business, 3(3), 147–165. https://doi.org/10.33633/jekobs.v3i3.11397
Lunardi, G. L., Becker, J. L., Maçada, A. C. G., & Dolci, P. C. (2014). The impact of adopting IT governance on financial performance: An empirical analysis among Brazilian firms. International Journal of Accounting Information Systems, 15(1), 66–81. https://doi.org/10.1016/j.accinf.2013.02.001
Melville, N., Kraemer, K., & Gurbaxani, V. (2004). Review: Information Technology and Organizational Performance: An Integrative Model of IT Business Value1. MIS Quarterly, 28(2), 283–322. https://doi.org/10.2307/25148636
Murini, M., Purba, J. H. V, Destiana, R., & Wijayanti, I. O. (2023). Analysis of the Influence of Dividend Policy, Capital Structure, and Financial Performance on Company Value: A Case Study on Public Companies on the Indonesia Stock Exchange. Western Science Journal of Business and Management, 2(04), 343–351. https://doi.org/10.58812/jbmws.v2i04.778
Start, E.-J., Plomp, M. G. A., & Hooff, B. (2013). Enterprise systems implementation success in the shakedown phase. 19th Americas Conference on Information Systems, AMCIS 2013 - Hyperconnected World: Anything, Anywhere, Anytime, 2, 1415–1423.
Sumiati, & Isnaini, A. (2024). The effect of tangible assets and green intellectual capital on profitability: The mediating role of ESG performance (study on go public companies in Indonesia). IBAF E-Proceedings, 11(1), 852–870. https://doi.org/10.33102/ck83zg48
Supriadi, Y., & Syahidah, H. (2018). Analysis of the influence of investment policy, sales growth and operating cost efficiency on profitability. Scientific Journal of Unit Management, 6(1), 65–75. https://doi.org/10.37641/jimkes.v6i1.38
Syahrir, N., Alam, S., & Sanusi, A. (2019). Financial decisions, operational efficiency, and innovation towards improving financial performance and company value in pharmaceutical companies on the Indonesia stock exchange. JBMI (Journal of Business, Management, and Informatics), 16(1), 22–38. https://doi.org/10.26487/jbmi.v16i1.4730
Tursina, N. (2025). The influence of information technology on governance, risk and compliance (GRC) moderated by financial performance. Journal of Economics, Business and Accounting (COSTING), 8(2), 901–918. https://doi.org/10.31539/costing.v8i2.14325
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Weil, K. E. (1985). Porter, Competitive advantage, creating and sustaining superior performance. Revista de Administração de Empresas, 25(2), 82–84. https://doi.org/10.1590/S0034-75901985000200009
Weill, P., & Ross, J. W. (2004). IT governance: how top performers manage IT decision rights for superior results. Harvard Business School Press.
Yusnita, E. (2024). Digital Transformation and Its Impact on Information Technology Governance (Telkom West Sumatra case study). Journal of Innovative and Creativity (Joecy), 4(3), 6–12. https://doi.org/10.31004/joecy.v4i3.113
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Julia, Agniya Thahira, Henry Ardian Irianta, Sari Indra Pratama
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors publishing manuscripts in Insight Management Journal agree to the following terms:
[1] Copyright to manuscripts in this Journal is held by the author, and grants the journal first publication rights with the work simultaneously licensed under the Attribution-NonCommercial-ShareAlike 4.0 International License which allows others to share the work with acknowledgement of authorship of the work and its initial publication in this journal;
[2] Authors may make separate, additional contractual arrangements for non-exclusive distribution of the journal published version of the work (e.g., posting it to an institutional repository or publishing it in a book), with acknowledgment of its initial publication in this journal;
[3] Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on websites) before and during the submission process, as it can result in productive exchanges, as well as earlier and greater citations of published work.
