Contrasting IT Capability and Organizational Types

2010 ◽  
Vol 22 (4) ◽  
pp. 1-23 ◽  
Author(s):  
Terry Anthony Byrd ◽  
Linda W. Byrd
Keyword(s):  
Firm Performance ◽  
Two Dimensions ◽  
Comparative Assessment ◽  
Theoretical Underpinning ◽  
Resource Based View ◽  
It Capability ◽  
Market Requirements ◽  
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.

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.

Should Fast-Food Franchisees Pursue Entrepreneurial Orientation?

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Ehsan Asgharian ◽  
Misagh Tasavori ◽  
Jim Andersén
Keyword(s):  
Firm Performance ◽  
Significant Role ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Fast Food ◽  
Business Systems ◽  
Unidimensional Construct ◽  
Different Dimensions ◽  
Competitive Aggressiveness ◽  
The Impact

Abstract Although it is widely accepted that entrepreneurial orientation (EO) improves firm performance, scholars have advised that particular attention should be paid to the context. In this research, we investigate a less explored context of franchising where business systems and procedures are usually dictated to franchisees by franchisors. Therefore, whether a franchisor should allow franchisees to pursue EO (innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy) is not clear. In the context of franchising, the majority of prior studies have mainly focused on the employment of EO as a unidimensional construct and at the franchisor level. In this research, we take a bottom-up perspective and evaluate the impact of different dimensions of EO on franchisees’ performance. Our analysis of a multi-group of 183 restaurant franchisees located in Sweden and Iran reveals that only the pursuit of proactiveness and competitive aggressiveness improves a franchisee’s performance and other dimensions do not play a significant role in improving performance in this context.

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.

scholarly journals Dynamic capability of the firm: analysis of the impact of internationalisation on SME performance in an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahfuzur Rahman ◽  
Dieu Hack-Polay ◽  
Sujana Shafique ◽  
Paul Agu Igwe
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Emerging Economy ◽  
Two Dimensions ◽  
Dynamic Capability ◽  
Content Type ◽  
Market Expansion ◽  
The Impact ◽  
The Relationship

PurposeInternationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship between dynamic capability, SMEs internationalisation and firm performance in the context of emerging economies and to evaluate the impact of financial, asset and market expansion on internationalisation of SMEs.Design/methodology/approachUsing primary data from 212 SMEs from Bangladesh, structural equation modelling and mathematical (hierarchical reflective) model, the analysis enabled the measurement of the casual relationship on the impacts of internationalisation.FindingsThe results revealed that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in an emerging economy- Bangladesh. The paper found internationalisation impacts on two dimensions (financial and non-financial) with eight defined indicators – higher sales, higher profit, assets maximisation, market expansion, competitive advantage, better reputation, better customer service and added knowledge.Originality/valueDespite several studies that examine the relationship between SME internationalisation and firm performance, limited research exists on emerging economies. This is contrary to the fact that SMEs are one of the main vehicles for growth in those economies such as Bangladesh. In this research, the authors use the theories of dynamic capabilities to conceptualise how internationalisation becomes a core SME capability for SMEs in an emerging economy.

The impacts of IT capability on internet-enabled supply and demand process integration, and firm performance in manufacturing and services

2015 ◽  
Vol 26 (1) ◽  
pp. 172-194 ◽  
Author(s):  
Hefu Liu ◽  
Qian Huang ◽  
Shaobo Wei ◽  
Liqiang Huang
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Process Integration ◽  
Supply And Demand ◽  
Equation Modeling ◽  
Moderating Effects ◽  
Resource Based View ◽  
Content Type ◽  
It Capability ◽  
Industry Type

Purpose – The purpose of this paper is to derive a model to examine how Information Technology (IT) capability affects internet-enabled supply and demand process integration, which will eventually improve firm performance. In addition, the moderating effects of industry type in the research framework are explored. Design/methodology/approach – Data were obtained from a survey administered to 261 firms in the manufacturing and services industry in China. The structural equation modeling approach is used to test the hypotheses. The study further applied the t-test to compare the path coefficiencies between manufacturing and service. Findings – Results from the survey indicate that internet-enabled supply and demand process integration is affected by IT capability, and can directly impact firm performance. The results further indicate that manufacturing and services firms may benefit from IT capability in different ways. Originality/value – The current paper contributes knowledge on the value-realizing mechanism of internet-enabled supply chain integration (SCI) from a resource-based view. It presents a multidimensional explanation of the relationships among IT capability, internet-enabled SCI, and firm performance.

scholarly journals The Impact of IT Investment on Firm Performance in Bangladesh

2020 ◽  
Vol 19 (1) ◽  
pp. 31-46
Author(s):  
Mohammad Mizanur Rahman ◽  
Jannatul Ferdaous
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Behavioral Effect ◽  
Positive Influence ◽  
Panel Data Estimation ◽  
It Capability ◽  
Inductive Research ◽  
And Performance ◽  
The Impact ◽  
Data Estimation

Using the RBV as a theoretical backdrop, the study is intended to begin the line of inquiry: Do IT asset matter and improve the firm performance? This inductive research used panel data estimation technique for unbalanced panel data to measure, describe, and analyze the firm performance. The results reveal a mixed behavioral effect of IT asset on firm performance. The positive influence of IT asset on firm performance suggests that a firm should invest to develop IT infrastructure in order to effectively promote firm IT capability and performance. However, the inverse relationship between IT asset and firm performance suggests that IT intensive stocks are not performing well in the stock market of Bangladesh. The study explains the IT asset’s contribution to firm performance from RBV perspective in the context of Bangladesh as well as extends the literature in this field.

A Resource-Based Perspective on Information Technology, Knowledge Management, and Firm Performance

2010 ◽  
pp. 296-310 ◽  
Author(s):  
Clyde W. Holsapple ◽  
Jiming Wu
Keyword(s):  
Information Technology ◽  
Knowledge Management ◽  
Firm Performance ◽  
Organizational Resources ◽  
Resource Based View ◽  
Technology Knowledge ◽  
It Capability ◽  
Order Variable ◽  
The Relationship ◽  
Firm Attributes

The resource-based view of the firm attributes superior firm performance to organizational resources that are valuable, rare, non-substitutable, and difficult to imitate. Aligned with this view, the authors contend that both information technology (IT) and knowledge management (KM) comprise critical organizational resources that contribute to superior firm performance. The authors also examine the relationship between IT and KM, and develop a new second-order variable – IT-KM competence – with IT capability and KM performance as its formative indicators. Thus, this chapter contributes not only by investigating the determinants of firm performance but also by broadening our understanding of the relationships among IT, KM, and firm performance.

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