He noted that cost cutting systems are likely not unique, and thus don't offer a competitive advantage. "Your vendors will sell the same system to your competitors," Mithas said.

But firms that spend IT dollars on revenue generating products may come up with systems that "are highly differentiated from your competition" said Mithas, "It will be very hard for your competition to replicate that."

Mithas said the team was unable to pinpoint an optimum level of IT spending.

Some firms are good at managing IT spending consistently, while others may pull back on IT investments after a failed project, and thus become a laggard.

The team, which also included researchers from the University of Illinois, the University of Texas, and the IE Business School in Madrid, Spain, concluded that that IT investments are more likely to enhance profits than advertising or R&D spending.