Enabling firm performance through business intelligence and analytics: A dynamic capabilities perspective

This study draws on the sense-seize-transform view of dynamic capabilities as the theoretical lens for examining the role of BI&A in organizations. It views BI&A as the sensing and seizing components of dynamic capabilities that contribute to firm performance by enabling business process change. Findings confirm a positive relationship between BI&A and performance, mediated by business process change capabilities. This study answers the call for a theoretically grounded examination of the relationship between BI&A and firm performance by highlighting the significance of the BI&A seizing capabilities, and the importance of business process change in translating BI&A output into improved performance.     

Innovation in IT firms: An investigation of intramural and extramural R&D activities and their impact

This research examines how intramural activities that are developed internally within the firm and extramural activities that are undertaken in collaboration with an external partner lead to product and process innovation. We use hierarchical regression analysis on data collected for European and Chinese firms and determine that intramural activities have a profound positive impact on process innovation, whereas their impact on product innovation is positive only for large firms. We discover that process innovation positively impacts product innovation but not vice versa. The results are important for managers who guide the R&D activities of a firm to product and process innovation.     

Double ambidexterity: How a Telco incumbent used business‐model and technology innovations to successfully respond to three major disruptions

We leverage the business model innovation and ambidexterity literature to investigate a contradictory case, the Swedish‐Finnish Telecom operator TeliaSonera. Despite being challenged by three major disruptions, the company not only still exists but also enjoys remarkably good financial performance. Building on extant archival data and interviews, we carefully identify and map 26 organizational responses during 1992–2016. We find that the firm has overcome three critical phases by experimenting and pioneering with portfolios of business models and/or technological innovations. We describe this behaviour as double ambidexterity. We use an in‐depth case study to conceptualize double ambidexterity and discuss its impact on the business's survival and enduring success.     

Resources,dynamic capabilities and performance in a dynamic environment: Perceptions in Taiwanese IT enterprises

This paper presents the results of an analysis of resources, dynamic capabilities and performance in a dynamic environment. The author used data from 244 Taiwanese information technology firms and found that, in an unstable environment, resources, whether from the firm itself or from associated support firms, did not directly influence performance. Instead, resources influenced performance through exercising dynamic capabilities. Furthermore, this effort showed that information technology firm performance can be directly assessed by examining the innovation speed, market response speed, production efficiency, and production flexibility of a firm.     

An innovative supply chain performance measurement system incorporating Research and Development (R&D) and marketing policy

Various performance measurement techniques have been developed and applied in their respective fields, but the existing performance measurement methods have failed to provide significant assistance in the context of marketing strategies and innovation levels of a firm. In this paper, we have considered an important aspect of marketing policy involving examining the decision of a firm to distribute products and services to its consumer. The model developed in this paper is an extension to the Bass diffusion model which is generalized to incorporate the effects of marketing policy of the firm. In order to examine our model, computer simulation is conducted in order to measure the effect of innovation level and distribution of products and services on the change in the sales of a firm from its previous products and supply chain system. The performance measurement was developed by examining firm’s level of innovation achieved by their Research and Development (R&D) performances, and sales of the products and services.     

Inter-organizational innovation and cloud computing

Firms are increasingly shifting from the ‘closed’ innovation paradigm, in which their innovation design and implementation activities were based on their own internal knowledge resources, skills and production facilities, towards the inter-organizational ‘open’ innovation paradigm, which is based to a significant degree on collaboration with other organizations, aiming at the exploitation of external knowledge resources, skills and production facilities as well. This paper investigates empirically the effects of firm’s inter-organizational collaboration for the design and implementation of innovations, and also use of ICT for supporting this collaboration, on firm’s propensity to adopt cloud computing (CC), and in this way it examines in an ‘objective’ manner to what extent firms regard CC as a cost-effective means of supporting inter-organizational collaboration for the design and implementation of innovation. Our study is based on a dataset collected in the e-Business Survey of the European Commission from 676 European firms from the glass, ceramics and cement manufacturing sectors. It has been concluded that firms of these sectors regard CC as a cost-effective means of supporting collaboration with other firms for the design of innovations in their products, services and processes, and also of reducing the costs and increasing the capabilities and flexibility of already existing electronic support of inter-organizational innovation design collaboration. Furthermore, our results indicate that firms find CC useful for the reduction of the costs and the increase of the capabilities and flexibility of their existing electronic support of the complex operations required for the inter-organizational implementation of innovations.     

IT-enabled knowledge ambidexterity and innovation performance in small U.S. firms: The moderator role of social media capability

This study examines the impact of information technology (IT)-enabled knowledge ambidexterity on innovation performance, and the potential moderator role of social media capability on a sample composed of 100 small U.S. firms. The empirical analysis suggests that IT infrastructure enables the firm to explore new knowledge and exploit existing/new knowledge to innovate more and better. We also find that social media capability has a positive moderator role in this equation: IT infrastructure and social media capabilities work together to enable knowledge ambidexterity.     

A Multi‐Level Model for Organizational Ambidexterity in the Search Phase of the Innovation Process

Innovation is one of the most critical means in supporting and improving the competitive position of the firm, in particular, and a firm's survival and growth depend greatly on its ability to balance the exploitation of existing knowledge with the exploration of new possibilities, by building ambidexterity capability. While different alternatives to realize the simultaneous reconciliation of exploration and exploitation at an operational level have been proposed, how organizations build ambidexterity capability is not fully understood. The aim of this paper is thus to explore how exploration and exploitation balancing can be achieved in practice. We decided to focus on the early phase of the process where firms search for new ideas with which to renew themselves. To this end, we analysed the search phase of a highly innovative technology‐based company by investigating structural design choices combined with the presence of specific roles and searching practices. The results show how the exploration and exploitation balancing act can actually be achieved and maintained through a multi‐level approach that integrates both the operational and the strategic levels. Our findings thus contribute to the organizational ambidexterity literature, by proposing a first interpretative model for dealing with ambidexterity in the search phase of the innovation process.     

Leveraging geographic and information technology scope for superior performance: an exploratory study in international banking

Here we investigate the relationship between the use of geographic and information technology (IT) scope as complementary factors to affect the value of products, the cost of operations and the overall performance of firms. We introduce the IT/Geographic Scope Matrix (IGSM) as a framework with which to study and understand the relationship in order to better manage the firm. We develop expectations that the consistent use of either high or low levels of IT and geographic scope may result in better firm performance than inconsistent use, where high levels of one are matched with low levels of the other. We apply the IGSM in a study of eleven firms, all of which provide financial services, specifically international cash management and trade finance, to firms in Hong Kong. The results of our study suggest that the IGSM may be a useful tool for IS planning and research and have implications for the co-ordination of business and IT planning.     

Understanding the Factors Affecting the Organizational Adoption of Big Data

Big data is rapidly becoming a major driver for firms seeking to gain a competitive advantage. Grounded in the Diffusion of Innovation theory (DOI), the institutional theory, and the Tech-nology–Organization–Environment (TOE) framework, this study applies the results of a content analysis to develop a framework to identify the main factors affecting the organizational adoption of big data. The content analysis is based on the retrieval and review of relevant papers in the business intelligence & analytics (BI&A) literature published during the period 2009–2015. The 26 factors identified by this review are then integrated into a TOE framework. The findings of this research enrich the current big data literature and enhance practitioners’ understanding of the decision-making processes involved in a firm’s adoption of big data.     

The antecedents and consequences of technology standardizations in Korean IT small and medium-sized enterprises

With rapid changes in the business environment, leading or utilizing technology standards may help firms gain better performance through competitive advantage. Such activities related to technology standards are likely to provide numerous opportunities or benefits to small and medium-sized enterprises (SMEs) in the highly technological divide among firms. However, few studies have paid attention to drivers, obstacles, and results of technology standards activities in SMEs. Consequently, this study bridges this research gap by identifying the factors influencing technology standardizations, which in turn contribute to firm performance in SMEs. The analytic results of survey data collected from 250 SMEs in the Korean IT sector reveal that all technology standardizations have an effect firm performance. Benefits from standards, R&D capability, and insufficient resources are influential factors of all technology standardizations. However, support of related institutes only affects inbound standardization. This study discusses theoretical and practical implications on technology standardizations in SMEs based on these findings.     

The synergistic effects of IT-enabled resources on organizational capabilities and firm performance

Computing the value of IT investments and clarifying how the portfolio of IT/IS resources affect a firm's performance and sustainable competitive advantage are critical issues today. We attempted to develop an effective measurement technique and use organizational theory to discover the strategic role of IT-enabled resources in the firm's competitive agenda. Based on a resource-based view of the firm, we proposed a way to evaluate the synergistic effect of such resources on the firm's capabilities, as they, influence the firms’ strategic objectives and improve its financial performance. The technological, human, and organizational resources work together to generate sub-additive cost and super-additive value synergies. Operations, R&D, and marketing capabilities allow firms to implement a business strategy that reflects its customer needs. A survey was conducted to check our framework. Our findings should provide valuable decision guides for practitioners when choosing a portfolio of IT/IS resources for implementing business strategies.     

Performance implications of internet channels in financial services: A comprehensive perspective

Advances in information technology (IT) have forced financial services firms to explore new organizational forms and deliver service innovation. Given the obvious differences in the business model in which the financial services sector provides online services, it is natural to ask whether the emergence of Internet channels leads to superior achievement. Using a sample of twenty-four Taiwanese publicly traded financial services firms from 1997 to 2003, this empirical study attempts to assess the Internet channel??s effect on firm performance by means of applying event study methodology and data envelopment analysis. Results show that the magnitudes of average abnormal returns are uniformly positive and increase the operating efficiency of firms following announcements via Internet channels. This work therefore concludes that Internet channels have positive influences on firm performance.     

Strategic Orientation, Competition, and Internet-Based Electronic Commerce

This paper investigates the relationship between strategic orientation, competition, and Internet-based electronic commerce. We propose that firms use the Internet to support their strategy, and in a manner that will help them compete in their environment. We use technology policy and entrepreneurial orientation as examples of strategic orientations, focusing on (a) the extent to which linkages exist between these orientations and conducting business activities over the Internet, and (b) whether these linkages vary as a function of the competitive intensity of the environment in which the firm operates. Analyses are based on a sample of 150 firms from the magazine publishing industry. Our results show that the more aggressive the technology policy and the stronger the entrepreneurial orientation, the more the firm uses the Internet to conduct business activities. More important, the competitive intensity of the business environment moderated these relationships: Technology policy and entrepreneurial orientation were associated with the use of Internet-based electronic commerce under high levels of competitive intensity, but significantly less so under low levels of competitive intensity.     

Creating business value with process mining

Information systems research has a long-standing interest in how organizations gain value through information technology. In this article, we investigate a business process intelligence (BPI) technology that is receiving increasing interest in research and practice: process mining. Process mining uses digital trace data to visualize and measure the performance of business processes in order to inform managerial actions. While process mining has received tremendous uptake in practice, it is unknown how organizations use it to generate business value. We present the results of a multiple case study with key stakeholders from eight internationally operating companies. We identify key features of process mining – data & connectivity, process visualization, and process analytics – and show how they translate into a set of affordances that enable value creation. Specifically, process mining affords (1) perceiving end-to-end process visualizations and performance indicators, (2) sense-making of process-related information, (3) data-driven decision making, and (4) implementing interventions. Value is realized, in turn, in the form of process efficiency, monetary gains, and non-monetary gains, such as customer satisfaction. Our findings have implications for the discourse on IT value creation as we show how process mining constitutes a new class of business intelligence & analytics (BI&A) technology, that enables behavioral visibility and allows organizations to make evidence-based decisions about their business processes.     

A study of IS assets,IS ambidexterity,and IS alignment: the dynamic managerial capability perspective

This study aims to explore how IT-business alignment can be better achieved. Drawing on the dynamic capability view, information systems (IS) alignment and IS ambidexterity are theorized as IT departments’ ordinary capability and dynamic managerial capability, respectively. Four IS assets are identified as antecedents of both IS ambidexterity and IS alignment. A research model with 14 hypotheses is tested with a sample of 162 manufacturing firms. The PLS analysis shows that IS ambidexterity can increase IS alignment in terms of operational support and that the four IS assets can affect IS alignment directly or indirectly. Implications for research and practice are provided.     

Exploring the relationships between IT competence,innovation capacity and organizational agility

Business environments today are characterized as being very dynamic and hyper competitive. Organizations in these environments have to be agile in order to adapt their strategies and actions to be successful. While it is recognized that information technology can enable firms to be agile, there is a limited understanding of the mechanisms through and the contexts in which Information Technology (IT) enhances agility. This study examines two key antecedents of organizational agility, namely the IT competence of a firm and its innovation capacity and, examine their independent and joint effects on agility. We test our model using data collected from large firms in the US. The results provide strong support for our model. We found that firms with superior IS capabilities coupled with an aggressive IT investment orientation create digital platforms that enable them to be agile. We also found that the innovation capacity of the firm has a positive relationship with organizational agility and that firms with higher innovation capacity are better able to leverage their digital platforms to enhance agility. Our results indicate that organizational agility has a strong positive impact of firm performance. We interpret and discuss these results and their theoretical and practical implications.     

Strategic context and patterns of IT infrastructure capability

The importance of a firm's information technology (IT) infrastructure capability is increasingly recognised as critical to firm competitiveness. Infrastructure is particularly important for firms in industries going through dynamic change, for firms reengineering their business processes and for those with multiple business units or extensive international or geographically dispersed operations. However, the notion of IT infrastructure is still evolving and there has been little empirically based research on the patterns of IT infrastructure capability across firms.We develop the concept of IT infrastructure capability through identification of IT infrastructure services and measurement of reach and range in large, multi-business unit firms. Using empirical case research, we examine the patterns of IT infrastructure capability in 26 firms with diverse strategic contexts, including different industry bases, level of marketplace volatility, extent of business unit synergies and the nature of firm strategy formation processes. Data collection was based on a combination of quantitative and qualitative methods with multiple participants.More extensive IT infrastructure capability is defined as a combination of more IT infrastructure services and more reach and range. More extensive IT infrastructure capability was found in firms where: (i) products changed quickly; (ii) attempts were made to identify and capture synergies across business units; (iii) there was greater integration of information and IT needs as part of planning processes; and (iv) there was greater emphasis on tracking the implementation of long term strategy. These findings have implications for both business and technology managers particularly in regard to how firms link strategy and IT infrastructure formation processes.     

Valuation of mergers and acquisitions in the telecommunications industry: a study on diversification and firm size

Since the 1996 Telecommunications Act, numerous mergers and alliances (M&A) have been consummated within the telecommunications industry. These M&A involve both large and small firms in a variety of different and similar industry segments. In this industry, replete with technological uncertainty, it is useful to evaluate the impact of these activities on the market valuation of the firms involved. This study uses event analysis to examine 44 M&A events involving 89 partners in the telecommunications industry. Drawing on prior literature on diversification and firm size, the study formulates and tests hypotheses relating the impact of near and far diversification, and the size of the firm, on market valuation. The results are mostly consistent with prior work and suggest that while overall these events weight positively on market value, M&A involving near-diversification and larger firms tend to experience greater valuation effects.     

Ties with government,strategic capability,and organizational ambidexterity: evidence from China’s information communication technology industry

Organizations that are capable of pursuing exploration and exploitative innovation strategies simultaneously have demonstrated superior performance. For information and communication technology (ICT) firms, it is especially critical to achieve such organizational ambidexterity in order to both allocate limited resources and pursue different innovation strategies appropriately. As the ICT industry in China faces higher environmental uncertainty, a less developed institutional framework, and increased power of market competition, we explore the antecedents of ambidexterity conjointly, considering the effects of institutions and organizational capabilities. Building on ambidexterity literature, we develop a capability-building framework to explore firms’ strategic choice-making between exploratory innovation strategy versus exploitation innovation strategy, and their orientation to pursuit one, or both. With survey data from China’s ICT industry, we find that ties with government promote an ambidextrous focus on both types of innovation strategies. In addition, we find that strategic capability partially mediates the main effects of ties with government on both exploratory and exploitative innovation strategies. Implications for organizational ambidexterity in China’s ICT industry are discussed.