IT Business Value and Competitive Advantage: Integrating a Customer-Based View

2011 ◽

pp. 2929-2933

Author(s):

Vincenzo Morabito ◽

Gianluigi Viscusi

Keyword(s):

Information Systems ◽

Competitive Advantage ◽

Large Scale ◽

Top Management Teams ◽

Business Value ◽

Organizational Assimilation ◽

It Business Value ◽

Business Executives ◽

Is Integration ◽

Assimilation Capacity

IT business value represents important outcomes in firms (Banker & Kauffman, 2004; Gable, Darshana, & Chan, 2003; Ravichandran & Chalermsak Lertwongsatien, 2005) whereas information systems (IS) integration represents a relevant amount of the IT spending. Notwithstanding, while most firms are making major investments in information technology, particularly in information systems integration (e.g., ERP and data warehouse solutions), not all of them apply IT effectively in their business activities (Brynjolfsson, McAfee, Zhu, & Sorell, 2006; Dehning & Stratopoulos, 2003; Jason, Vijay, & Kenneth, 2003) obtaining IT business value and organizational competitive advantage. This research is based on an integrative model of IT business value, aiming to evaluate the mediating effect of an “IT organizational assimilation capacity” between IS integration and organization competitive advantage. Taking into account the theoretical premises that IT business value is generated by the exploitation of both IT and organizational resources, we develop a research model and propose two research hypotheses. The model and the related hypotheses are based on a large-scale sample survey (Francalanci & Morabito, 2006). The responses were obtained from 466 CIOs and senior business executives, who were members of the firms’ top management teams in Italian companies.

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Unravelling the relationship between a firm’s big data analytics capability and the realization of a competitive advantage: an IT business value approach

10.24251/hicss.2022.749 ◽

2022 ◽

Author(s):

Pieter De Rijck

Keyword(s):

Big Data ◽

Competitive Advantage ◽

Data Analytics ◽

Big Data Analytics ◽

Business Value ◽

It Business Value ◽

The Relationship ◽

Analytics Capability

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The Impact of IT Resources on the IT Business Value

International Journal on IT/Business Alignment and Governance ◽

10.4018/jitbag.2011070104 ◽

2011 ◽

Vol 2 (2) ◽

pp. 48-62

Author(s):

Janusch Patas ◽

Jens Bartenschlager ◽

Matthias Goeken

Keyword(s):

Competitive Advantage ◽

Theoretical Foundation ◽

Empirical Studies ◽

Business Value ◽

Systematic Research ◽

Research Gaps ◽

Resource Based View ◽

It Business Value ◽

It Resources ◽

The Impact

Recently, the Resource-based View (RBV) attracts more attention in IT business value research, as it serves as a theoretical framework for the identification of IT resources impacting firm performance. Although numerous empirical studies applying the RBV can be found, systematic research structuring the obtained knowledge is hardly available. Therefore, the authors conduct an evidence-based literature review to structure and consolidate empirical evidence from studies using the RBV as a theoretical foundation. The authors illustrate how different IT resources can be distinguished and classified by considering their operationalization. With the means of a research map, they illustrate the findings and evidence, pointing out contradictory results of how different classes of IT resources affect the IT business value in terms of the competitive advantage. The authors then discuss direct effects of IT resources on the competitive advantage as well as research gaps. Finally, they present implications regarding the RBV in IT business value research.

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Exercising Due Diligence in Studies of Duration of Competitive Advantage Due to Emerging Technology Adoption

Journal of Emerging Technologies in Accounting ◽

10.2308/jeta-51702 ◽

2017 ◽

Vol 14 (1) ◽

pp. 27-35 ◽

Cited By ~ 2

Author(s):

Theophanis C. Stratopoulos

Keyword(s):

Technology Adoption ◽

Competitive Advantage ◽

A Priori ◽

Emerging Technology ◽

Business Value ◽

Due Diligence ◽

Resource Based View ◽

It Business Value ◽

Future Studies ◽

Potential Source

ABSTRACT Motivated by the study of Reinking et al. (2015), the study proposes a due diligence process for future studies aiming to investigate the duration of competitive advantage due to emerging technology adoption. The proposed process is based on the following premise: Predictions related to rate of adoption are useful to IT business value researchers because technology adoption remains a potential source of competitive advantage until adoption rate has reached approximately 50 percent. Based on a comparison of two technologies (ERP and e-commerce), the study provides the following three recommendations for researchers interested in productivity and financial performance-related payoffs due to emerging technology adoption: (1) apply the resource-based view analysis on the emerging technology to see if the duration of competitive advantage is worth exploring; (2) leverage the synthesis done by Stratopoulos (2016) to develop an a priori testable benchmark duration; and (3) contrast adopters with a matched sample of non-adopters or late adopters to establish a duration advantage.

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The Resource-Based View of IT Business Value: Complementary Investments or Embedded Knowledge?

Journal of Information & Knowledge Management ◽

10.1142/s0219649212500050 ◽

2012 ◽

Vol 11 (01) ◽

pp. 1250005 ◽

Cited By ~ 1

Author(s):

Vishnu Vinekar ◽

James T. C. Teng

Keyword(s):

Firm Performance ◽

Competitive Advantage ◽

Business Value ◽

Direct Effects ◽

Firm Level ◽

Resource Based View ◽

It Business Value ◽

It Investments ◽

It Systems ◽

Embedded Knowledge

This paper tests a primary postulate of the Resource-Based View (RBV) of Information Technology (IT) business value. From this perspective, IT is not rare but pervasive, and it is only the combination of investments with other resources that makes the investment inimitable. Therefore, the effect of IT on firm performance cannot be direct effects, but rather firm performance can only be affected when IT expenditures are combined with other investments. This study tests this theory using panel data of large firms spanning seven years. Firm-level data is gathered from Compustat and matched to Information Systems (IS) Budget data. The results do not support the RBV postulate that IT Expenditure cannot have direct competitive advantage but must be combined with expenditure on other assets to effect firm performance. Instead, the results support the opposing hypotheses: IT expenditure and capital expenditures have independent, direct effects on firm revenue as well as firm profit, even in the presence of the interaction variable. The results imply that IT investments may be a source of direct competitive advantage, unlike the postulate of the RBV theorists. This may be because an IT system has embedded knowledge and creates knowledge, making it rare and imperfectly imitable. Rather than investing in generic IT systems and trying to obtain uniqueness from investments in complementary resources, firms can try embedding firm-specific knowledge when designing or modifying their systems and using their systems to create knowledge. This is the first study to test the RBV postulate that value from IT comes only with the combination of IT investments and investments in other assets and not from direct effects. By disproving this postulate, this study opens the door to new hypotheses based on knowledge in and from IT systems.

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