The Impact of IT Resources on the IT Business Value

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.

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

2017 ◽  
Vol 14 (1) ◽  
pp. 27-35 ◽  
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.

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

2012 ◽  
Vol 11 (01) ◽  
pp. 1250005 ◽  
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.

Best-value supply chains and firms’ competitive performance: empirical studies of their linkage

2015 ◽  
Vol 35 (12) ◽  
pp. 1688-1709 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple
Keyword(s):  
Supply Chains ◽  
Competitive Advantage ◽  
Empirical Studies ◽  
Abnormal Returns ◽  
Competitive Performance ◽  
Content Type ◽  
Long Run ◽  
Best Value ◽  
Multiple Method ◽  
The Impact

Purpose – Best-value supply chains characterized by agility, adaptability, and alignment, have become a crucial strategic means for firms to create and sustain competitive advantage in today’s turbulent environment. The purpose of this paper is to investigate linkage between best-value supply chains and firms’ competitive performance. Design/methodology/approach – In Study 1, survey data from 76 firms is used to test the impact of the three qualities of best-value supply chains on firms’ competitive performance. In Study 2, to test if a firm’s competitive advantage can be sustained through building best-value supply chains, a long-run performance analysis is conducted, which is based on a stock portfolio of firms identified from the American Marketing Association’s annual list of “Supply Chain Top 25.” Findings – The results of Study 1 indicate that the three qualities of best-value supply chains are positively related to firms’ competitive performance. The results of Study 2 show that firms having best-value supply chains generate significant and positive abnormal returns for shareholders over time. Originality/value – This is a multiple-method research, providing two-level empirical evidence to the investigation of theoretical linkage between best-value supply chains and firms’ competitive performance.

Theory A, Theory B and Theory C of managing people at work

2021 ◽  
Vol 5 (1) ◽  
pp. 69-75
Author(s):  
Birendra Nath Singh
Keyword(s):  
Empirical Studies ◽  
Shop Floor ◽  
Scientific Management ◽  
Business Organization ◽  
Business Organizations ◽  
Research Gaps ◽  
Future Studies ◽  
Modern Business ◽  
And Control ◽  
The Impact

Managing people and productivity are prime concerns of modern business organizations. Many empirical studies were conducted during the era of scientific management (Taylor, 1911) to investigate What and How? McGregor’s (1960) epic theory — Theory X and Theory Y, categorizing all employees into two groups and prescribing methods to motivate and control them was the best. However, his findings also suffered strong criticisms, creating research gaps. The objective of this study was to investigate further and to conclude that there are three major groups named Theory A, Theory B, and Theory C. Amongst them, a middle group — Theory B is most dominant, having all capabilities to significantly influence productivity and prosperity of organizations. The methodology used was qualitative, based upon intensive and critical shop-floor observations. Since this study was not empirical, it had many limitations requiring further researches. Therefore, rightly recommended that future studies should correlate the impact of technological advancements upon motivations and productivity of the modern business organization (Veitch, 2018).

Organizational Assimilation Capacity and IT Business Value

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.

Contrasting IT Capability and Organizational Types

2012 ◽  
pp. 1-24
Author(s):  
Terry A. Byrd ◽  
Linda W. Byrd
Keyword(s):  
Firm Performance ◽  
Performance Measures ◽  
Two Dimensions ◽  
Resource Based View ◽  
It Capability ◽  
Market Requirements ◽  
It Resources ◽  
Different Dimensions ◽  
The Impact ◽  
Inside Out

The Resource-Based View (RBV) has become one of the most popular ways to examine the impact of IT on firm performance. An increasing number of researchers are using the theoretical underpinning of the RBV to ground their research in investigating this relationship. This paper follows in this tradition by developing multidimensional measures for two dimensions of IT capability, inside-out IT capability and spanning IT capability. In this regard, the authors relate these dimensions to firm performance as profit ratios and cost ratios. Inside-out capability is the IT resources deployed from inside the firm in response to market requirements and opportunities. However, spanning IT capability involves both internal and external analysis and is needed to integrate the firm’s inside-out and outside-in IT competences. This study also makes an exploratory comparative assessment of the relative impact of inside-out IT capability and spanning IT capability, while analyzing the differences on the impact of IT capability in diverse types of organizations. Finally, the authors give evidence that different dimensions of IT capability may have different effects on performance measures.

scholarly journals How Value Network-Based Co-Inovation Contribute in Competitive Advantage

2019 ◽  
Vol 28 (2) ◽  
pp. 79-90
Author(s):  
Maryono Maryono ◽  
Imam Ghozali ◽  
Amie Kusumawardhani ◽  
Mahelan Prabantariksa
Keyword(s):  
Competitive Advantage ◽  
Value Chain ◽  
Conceptual Development ◽  
Empirical Studies ◽  
Value Network ◽  
Mediating Role ◽  
A Value ◽  
Relational Capabilities ◽  
The Impact ◽  
The Relationship

This study aims to develop a comprehensive integrated model which helps in explaining the impact of value chain integration’s (VCI)’s and relational capability impact on co-innovation in a network and competitive advantage. It also explores the role of value network-based co-innovation as a mediator in the relationship between supply chain integration and competitive advantage, and in the relationship between relational capabilities and competitive advantage of a housing bank sector. The study suggests that firm gains competitive advantage by utilizing value chain integration and relational capability. It is argued here that co-innovation based on value network has mediating role to create competitive advantage. The paper provides a discussion and implication on where value lies and how value is co-created in network of interdependent relationship and illustrate this by sketching a value map in network relationship and possible innovations that can be co-created in housing bank ecosystem. The study involved a single government owned bank located in different cities, therefore the results should be generalized cautiously. This paper constitutes an attempt to stimulate efforts and provide directions on the further conceptual development of value network-based co-innovation (VNBC). The newly developed measure of VNBC and CA exempt from past conceptual streams of the determinant of CA, could be used for valid measurements in future empirical studies in the field of strategic management. The paper provides a practical implications for managers to identify value and utilize new way of analyzing value-chain to create co-innovation within housing bank ecosystem. It also allows manager to practicing relational capability which gives the most impact to competitive advantage..

scholarly journals IT and Fast Growth Small-to-Medium Enterprise Performance: An Empirical Study in Australia

2015 ◽  
Vol 19 ◽  
Author(s):  
Rui Bi ◽  
Robert M Davison ◽  
Kosmas X Smyrnios
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Business Value ◽  
Fast Growth ◽  
Equation Modeling ◽  
It Business Value ◽  
It Capability ◽  
Industrial Sectors ◽  
It Resources ◽  
Medium Enterprises

Information technology (IT) is regarded as a facilitator for both small and large firms to speed up transactions between firms and their suppliers and customers, achieve real-time communication, lower transaction costs, and enhance speed and flexibility. However, understanding whether and how IT helps small-to-medium enterprises (SMEs) to create business value still remains unclear. Drawing upon resource-based view theory, source-positional advantage-performance framework, we develop and test a theoretical model to explore the interrelationships between IT resources (IT expertise, IT infrastructure), IT capability (IT integration), IT-enabled inter-firm partnership processes (activity integration, coordination, partnership enhancement), and organizational performance in the fast growth SME context. We propose that IT business value depends on how firms employ IT resources to develop IT capability which facilitates inter-firm partnership processes along value chains. Structural equation modeling is employed to test our theoretical conceptualization of 310 Australian fast-growth SMEs across different industrial sectors. Results show that IT contributes to fast growth SME performance through the development of IT capability and enhancement of inter-firm partnership activities. This research highlights the role of IT in business value creation and the ways in which IT is used by fast growth SMEs to foster core business competencies.

Toward a Perspective on R&D Outsourcing: RBV and Firm Performance

2018 ◽  
Vol 15 (05) ◽  
pp. 1850040 ◽  
Author(s):  
Anne W. Fuller
Keyword(s):  
Decision Making ◽  
Firm Performance ◽  
Research And Development ◽  
Competitive Advantage ◽  
Industrial Research ◽  
Vital Role ◽  
Decision Making Process ◽  
Resource Based View ◽  
The Impact

This paper looks at the vital role of industrial research and development (R&D). The increased outsourcing of industrial R&D is contrasted with a resource-based view of competitive advantage which maintains capabilities that are valuable, rare, imitable, and non-substitutable (VRIN), and should be internalized in the firm. Traditional business formation literature is also supportive of keeping R&D “inhouse”. R&D outsourcing research is leveraged to posit possible reasons for the increased amount of outsourced R&D. Testable propositions are included that look at factors for R&D outsource decisions and also the impact of these decisions on firm performance. An R&D entropy statistic is introduced as well as several R&D characteristics useful in the decision-making process to create R&D.

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