Green Information Technology, Energy Efficiency, and Profits: Evidence from an Emerging Economy

Prior studies argue that information technology (IT) can play an important role toward sustainable and “greener” growth, yet few studies have empirically assessed the adoption and efficacy of green information technology initiatives at the firm level. This study investigates the factors that influence green IT implementation in organizations; and the consequences of the green IT implementation in terms of energy conservation and profit. Based on a survey of 293 organizations in India, we find that top management commitment plays an important role in influencing perceived importance of green IT in an organization. In turn, the perceived importance of green IT initiatives within an organization influences the green IT spending as a percentage of overall IT spending. Among consequences of green IT implementation, green IT implementation is positively associated with higher reductions in IT equipment energy consumption and higher profit impact. We discuss the implications of the study for further research, policy, and managerial practice to design and encourage implementation of green IT initiatives for environmental sustainability.