From IT deployment capabilities to competitive advantage: An exploratory study in China |
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Authors: | Jun Tian Kanliang Wang Yan Chen Björn Johansson |
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Affiliation: | (1) School of Management, Xi’an Jiaotong University, Xi’an, 710049, China;(2) Center for Applied ICT, Copenhagen Business School, DK-2000 Frederiksberg, Denmark |
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Abstract: | As more and more companies are deploying, or plan to deploy, information systems, the organizational capabilities to effectively
deploy information technologies to support and shape businesses become increasingly important. While many studies have focused
on how to acquire state-of-the-art information technologies and on how to effectively utilize implemented information technologies,
more studies are still needed to investigate how a company can successfully deploy acquired information technologies to support
and shape businesses strategies and value chain activities. IT deployment capabilities are defined as the organizational capabilities
to configure and reconfigure a company’s information system by adding new IT components or by adapting the existing information
systems in order to make the whole information system available to support and shape businesses. This study identifies and
investigates the three building blocks of IT deployment capabilities: strategic IT flexibility, business–IT partnership, and
business–IT alignment. Using the resource-based view, we propose a framework to explain the relationship between IT deployment
capabilities and competitive advantage. The research model is tested on data collected in China. Results show that strategic
IT flexibility and business–IT partnership have direct impacts on competitive advantage, while business–IT alignment has an
indirect impact on competitive advantage. The effect of business–IT alignment on competitive advantage is fully mediated by
strategic IT flexibility and business–IT partnership. The results provide support for the relationship between IT deployment
capabilities and competitive advantage. The study presents implications for how to develop IT deployment capabilities and
how to generate business value from IT investment. |
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