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Journal ArticleDOI

Information technology capability and firm performance: contradictory findings and their possible causes

TLDR
Surprisingly, the results of the current analysis showed no significant link between IT capability and firm performance with data from the 2000s.
Abstract
Several studies support the positive link between information technology capability and firm performance, including Bharadwaj (2000) and Santhanam and Hartono (2003), which appeared in MIS Quarterly. We conducted a study to see if this link is still statistically significant. It is now over a decade since the first study was published, during which several significant developments in the IT industry have taken place. Unlike the 1990s, when proprietary information systems prevailed, the 2000s are characterized by more standardized and homogeneous information systems and with the rapid adoption of ERP and web technologies. Thus, we attempted to reexamine the link between IT capability and firm performance with data from the 2000s. Surprisingly, the results of our current analysis showed no significant link between IT capability and firm performance. Contrary to earlier studies, IT leader firms in our study didn't show better financial performance than control firms. We discuss several possible causes for the change in findings and present an in-depth comparison in business performance between the two groups--IT leader and control--over a period extending from 1991 to 2007.

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Citations
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Journal ArticleDOI

Toward the development of a big data analytics capability

TL;DR: Results empirically validate the proposed theoretical framework of this study and provide evidence that BDA capability leads to superior firm performance.
Journal ArticleDOI

The Role of Dynamic Capabilities in Responding to Digital Disruption: A Factor-Based Study of the Newspaper Industry

TL;DR: This study builds on disruptive innovation theory by ascertaining the role of dynamic capabilities in the performance of response to digital disruption and suggests that first-order dynamic capabilities that are created by changing, extending, or adapting a firm’s existing resources, processes, and values are positively associated with building digital platform capabilities.
Journal ArticleDOI

Big Data and Predictive Analytics and Manufacturing Performance: Integrating Institutional Theory, Resource-Based View and Big Data Culture

TL;DR: This paper draws on the resource‐based view of the firm, institutional theory and organizational culture to develop and test a model that describes the importance of resources for building capabilities, skills and big data culture and subsequently improving cost and operational performance.
Journal ArticleDOI

Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities

TL;DR: Results show that a strong BDAC can help firms build a competitive advantage, and suggest that IS researchers should look beyond direct effects of big data investments and shift their attention on how aBDAC can be leveraged to enable and support organizational capabilities.
Journal ArticleDOI

Information technology resource, knowledge management capability, and competitive advantage

TL;DR: This study identifies two positive quasi-moderating effects of resource commitment on the IT resourceKMC relationship, which directly and positively enhances KMC, and strengthens the effects of IT human and IT relationship resources on KMC.
References
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Book ChapterDOI

Firm Resources and Sustained Competitive Advantage

TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.

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Journal ArticleDOI

A resource-based perspective on information technology capability and firm performance: an empirical investigation

TL;DR: The concept of IT as an organizational capability is developed and empirically examining the association between IT capability and firm performance indicates that firms with high IT capability tend to outperform a control sample of firms on a variety of profit and cost-based performance measures.
Journal Article

Strategy and the Internet.

TL;DR: Porter as discussed by the authors argues that the Internet is not disruptive to most existing industries and established companies and, contrary to recent thought, the Internet itself will be neutralized as a source of advantage.
Journal ArticleDOI

Review: information technology and organizational performance: an integrative model of it business value

TL;DR: A model of IT business value is developed based on the resource-based view of the firm that integrates the various strands of research into a single framework and provides a blueprint to guide future research and facilitate knowledge accumulation and creation concerning the organizational performance impacts of information technology.
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