The effect of transformative IT capability on sustainable competitive advantage

Author(s):  
Teguh Widodo
2019 ◽  
Vol 10 (2) ◽  
pp. 250
Author(s):  
Devika Nadarajah ◽  
Sharifah Latifah Syed Abdul Kadir ◽  
Haliyana Khalid

Business Process Management or BPM is the blueprint of how work is performed in any organisation to deliver customer requirements. Sustainable Competitive Advantage or SCA pushes organisations to adopt flexibility and dynamism into their systems, processes and culture. A study was carried out to determine the influence of BPM on SCA, and to identify the antecedents of BPM in creating SCA. One of the antecedents’ of the study was IT capability. The study was based on organisations in Malaysia. The results from the study revealed that IT capability failed to observe significant relationship to BPM and SCA. In an attempt to understand further this phenomenon, a series of interviews were carried out on 3 companies representing the telecommunications, consulting and manufacturing industries. The findings revealed that while IT capability is a “must-have”, there are numerous factors that may influence or hinder the effectiveness of IT capability implementation.


2018 ◽  
Vol 10 (10) ◽  
pp. 3816 ◽  
Author(s):  
M. Akram ◽  
M. Goraya ◽  
Aneela Malik ◽  
Amer Aljarallah

This study explores the effects of organizational information technology (IT) capability in determining organizational performance and sustainable competitive advantage. Building on the resource-based and knowledge-based views of a firm, the study proposes a theoretical framework. In this framework, organizational IT capability is theorized to strengthen organizational performance and sustainable competitive advantage, directly and indirectly, through organizational knowledge management capabilities. Data collected from the middle and senior managers of diverse organizations in an emerging economy have been used to test the relationships in the framework. To estimate the proposed relationships in the conceptual model, we use structural equation modeling through SmartPLS 3.2. The results confirm that organizational IT capability significantly impacts organizational performance and sustainable competitive advantage. Additionally, organizational knowledge management capabilities partially mediate the relationship between IT capability and the outcomes (i.e., organizational performance and sustainable competitive advantage). The study concludes with a discussion of the implications for academicians and managers.


2012 ◽  
pp. 78-90
Author(s):  
Thang Nguyen Ngoc

Knowledge and the capability to create and utilize knowledge today are consid- ered to be the most important sources of a firm’s sustainable competitive advantage. This paper aims to advance understanding of the knowledge creation of firm in Vietnam by studying Alphanam Company. The case illustrates how knowledge- based management pursues a vision for the future based on ideals that consider the relationships of people in society. The finding shows that the case succeeded because of their flexibility and mobility to keep meeting to the changing needs of the customers or stakeholders. The paper also provided some suggestions for future research to examine knowledge-based management of the companies in a different industry segments and companies originating in other countries


2017 ◽  
Vol 6 (2) ◽  
pp. 1
Author(s):  
Albert Naiem Naguib ◽  
Eahab Elsaid ◽  
Abdel Moneim Elsaid

This study examines the relationship between dynamic capabilities (experience, routine, skills, firm characteristics, knowledge and technology) and competitive advantage sustainability in the Egyptian pharmaceutical sector. The data was collected using primary and secondary data sources. Primary data was collected from questionnaires distributed to 160 top managers in 20 pharmaceutical firms. The secondary data about pharmaceutical firms like rankings, revenues and market share was collected from external sources such as Intercontinental Marketing Service (IMS). The questionnaires examine six independent variables based on a five-scale Likert scale. The methodology used in the study is non-probability sampling (judgmental sampling), Cronbach’s alpha reliability coefficient and Chi-square tests. The results support the notion that there is a significant relationship between four of the six dynamic capabilities (experience, skills, firm characteristics and knowledge) and the competitive advantage sustainability for pharmaceutical firms in Egypt. Designing the questionnaire and formulating the questions to target the required field was challenging, given that the topic is dynamic and the business scene in Egypt has witnessed drastic political changes since January 2011. The study should assist pharmaceutical companies in Egypt in directing their investments properly and in determining the weaknesses in their dynamic capabilities that need to be addressed.


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