Leveraging digital technologies: how information quality leads to localized capabilities and customer service performance
01 Jun 2013-Management Information Systems Quarterly (Society for Information Management and The Management Information Systems Research Center)-Vol. 37, Iss: 2, pp 565-590
TL;DR: A capabilities perspective is used to propose digital design as an antecedent to two customer service capabilities--namely, customer orientation capability and customer response capability--across a firm's CSUs, which will help a firm to locally sense and respond to customer needs.
Abstract: With the growing recognition of the customer's role in service creation and delivery, there is an increased impetus on building customer-centric organizations. Digital technologies play a key role in such organizations. Prior research studying digital business strategies has largely focused on building production-side competencies and there has been little focus on customer-side digital business strategies to leverage these technologies. We propose a theory to understand the effectiveness of a customer-side digital business strategy focused on localized dynamics--here, a firm's customer service units (CSUs). Specifically, we use a capabilities perspective to propose digital design as an antecedent to two customer service capabilities--namely, customer orientation capability and customer response capability--across a firm's CSUs. These two capabilities will help a firm to locally sense and respond to customer needs, respectively. Information quality from the digital design of the CSU is proposed as the antecedent to the two capabilities. Proposed capability-building dynamics are tested using data collected from multiple respondents across 170 branches of a large bank. Findings suggest that the impacts of information quality in capability-building are contingent on the local process characteristics. We offer implications for a firm's customer-side digital business strategy and present new areas for future examination of such strategies.
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TL;DR: The time is right to rethink the role of IT strategy, from that of a functional-level strategy--aligned but essentially always subordinate to business strategy--to one that reflects a fusion between IT strategy and business strategy, herein termed digital business strategy.
Abstract: Over the last three decades, the prevailing view of information technology strategy has been that it is a functional-level strategy that must be aligned with the firm's chosen business strategy. Even within this so-called alignment view, business strategy directed IT strategy. During the last decade, the business infrastructure has become digital with increased interconnections among products, processes, and services. Across many firms spanning different industries and sectors, digital technologies (viewed as combinations of information, computing, communication, and connectivity technologies) are fundamentally transforming business strategies, business processes, firm capabilities, products and services, and key interfirm relationships in extended business networks. Accordingly, we argue that the time is right to rethink the role of IT strategy, from that of a functional-level strategy--aligned but essentially always subordinate to business strategy--to one that reflects a fusion between IT strategy and business strategy. This fusion is herein termed digital business strategy.
We identify four key themes to guide our thinking on digital business strategy and help provide a framework to define the next generation of insights. The four themes are (1) the scope of digital business strategy, (2) the scale of digital business strategy, (3) the speed of digital business strategy, and (4) the sources of business value creation and capture in digital business strategy. After elaborating on each of these four themes, we discuss the success metrics and potential performance implications from pursuing a digital business strategy. We also show how the papers in the special issue shed light on digital strategies and offer directions to advance insights and shape future research.
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TL;DR: A framework of digital transformation articulated across eight building blocks is built that foregrounds digital transformation as a process where digital technologies create disruptions triggering strategic responses from organizations that seek to alter their value creation paths while managing the structural changes and organizational barriers that affect the positive and negative outcomes of this process.
Abstract: Extant literature has increased our understanding of specific aspects of digital transformation, however we lack a comprehensive portrait of its nature and implications. Through a review of 282 works, we inductively build a framework of digital transformation articulated across eight building blocks. Our framework foregrounds digital transformation as a process where digital technologies create disruptions triggering strategic responses from organizations that seek to alter their value creation paths while managing the structural changes and organizational barriers that affect the positive and negative outcomes of this process. Building on this framework, we elaborate a research agenda that proposes [1] examining the role of dynamic capabilities, and [2] accounting for ethical issues as important avenues for future strategic IS research on digital transformation.
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TL;DR: The dynamic capabilities framework as mentioned in this paper analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change, and suggests that private wealth creation in regimes of rapid technology change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm.
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27,902 citations
"Leveraging digital technologies: ho..." refers background in this paper
...…Service Capabilities Because building capabilities entails routinization of various work activities within the customer services process, characteristics of the underlying process are often an important influence in capability-building dynamics (Eisenhardt and Martin 2000; Teece et al. 1997)....
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...However, a contemporary view of digital business strategy emphasizes that, to realize their impacts on performance, digital technologies may be better harnessed by building organizational capabilities (Eisenhardt and Martin 2000; Pavlou and El Sawy 2006; Teece et al. 1997)....
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...Capability-building often entails routinization of key tasks and activities within a firm’s processes (Eisenhardt and Martin 2000; Teece et al. 1997)....
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01 Jan 1991TL;DR: In this article, the effects of predictor scaling on the coefficients of regression equations are investigated. But, they focus mainly on the effect of predictors scaling on coefficients of regressions.
Abstract: Introduction Interactions between Continuous Predictors in Multiple Regression The Effects of Predictor Scaling on Coefficients of Regression Equations Testing and Probing Three-Way Interactions Structuring Regression Equations to Reflect Higher Order Relationships Model and Effect Testing with Higher Order Terms Interactions between Categorical and Continuous Variables Reliability and Statistical Power Conclusion Some Contrasts Between ANOVA and MR in Practice
27,897 citations