Examining the role of information technology in cultivating firms’ dynamic marketing capabilities

Most prior research has investigated an organization's dynamic capabilities in general and overlooked their effect on critical business functions. Our study considered the role of IT in improving firm's dynamic marketing capabilities. We developed a model consisting of market orientation, IT infrastructure capabilities, and the use of IT in customer relationship management (CRM). With data collected from 135 manufacturing and service firms in Taiwan, our results supported most of our hypotheses. Our results showed important direct effects of a firm's market orientation, use of IT to support CRM, and the functionality of IT infrastructure capabilities on its dynamic marketing capabilities.     

IT capabilities and firm performance: A contingency analysis of the role of industry and IT capability type

Previous empirical studies examining the relationship between IT capability and accounting-based measures of firm performance reported mixed results. We argued that prior work has relied on aggregate overall measures of the firm's IT capability, ignoring the specific type and nature of IT capability; and also has not fully considered important environmental conditions that influence the relationship. Drawing on a resource-based view, we advanced a contingency perspective and proposed that IT capabilities’ impact on firm resources was contingent on the “fit” between the type of IT capability/resource a firm possesses and the demands of the industry in which it competes. Specifically, using publicly available rankings as proxies for two types of IT capabilities (internally and externally focused), we empirically examined the degree to which three industry characteristics (dynamism, munificence, and complexity) influenced the impact of each type of IT capability on measures of financial performance. After controlling for prior performance, we found there was general support for the posited contingency model. The implications of these findings are also discussed.     

The role of IT human capability in the knowledge transfer process in IT outsourcing context

Our research attempted to identify the behavioral process of knowledge transfer by examining the effects of IT human capability, human character, trust, and cooperative learning on it in an IT outsourcing situation. By analysing data collected from vendor and client matched-pair samples of 87 IT outsourcing projects, we found that both the client's and the vendor's character influenced trust, trust affects on cooperative learning, and the cooperative learning influence on knowledge transfer. More importantly, it we found that the client's IT human capability had a direct impact on cooperative learning and knowledge transfer. This indicated that client's IT human capability was a crucial factor in effective knowledge transfer during IT outsourcing. It also implied that client firms should identify and retain some IT personnel who can apply vendors’ competencies in IT practice and respond effectively to any technological challenges.     

The role of IT application orchestration capability in improving agility and performance

This paper investigates how IT application orchestration – a dynamic capability encapsulating a firm’s ability to refresh its application portfolio through a process of building, buying, and retiring IT applications – impacts firm performance. We propose a conceptual model in which the effect of IT application orchestration on firm performance is mediated by process agility. We further propose that a firm’s strategic orientation moderates the effect of IT application orchestration capability on process agility. Analysis of data from an international survey of IT executives supports our proposed hypotheses. This research contributes to the emergent literature on dynamic capabilities by proposing and testing a theory of how IT application orchestration capability affects agility and firm performance.     

Impact of digital leadership capability on innovation performance: The role of platform digitization capability

Following a mixed-methods approach, we theorized that digital leadership influences innovation performance by digitalizing the firm's platform. A multiple case study of ten companies was deployed to derive a theoretical model relating digital leadership and innovation performance. The resulting model was empirically tested on a sample of 117 European firms. We find that digital leadership improves a firm's innovation performance by digitalizing the firm's platform. We contribute to IS research by theoretically developing the concepts of digital leadership capability and platform digitization capability and empirically analyzing the relationship of these two critical IT capabilities and their impact on innovation performance.     

IT outsourcing and firm-level performance: A transaction cost perspective

We analyzed the effect of the level of low asset specificity IT outsourcing on firm-level financial performance. We used transaction cost economics (TCE) as the theoretical basis to explain the effect of the level of network and telecommunication services outsourced on financial performance. An analysis of 1444 Integrated Healthcare Delivery Systems revealed that higher levels of network and telecommunication services outsourced were associated with superior financial performance. Specifically, each additional network and telecommunication service outsourced resulted in an average $3,120,000 in savings, a 25% increase in profit. In addition, increases in IT budgetary expenditures were found to be associated with increased financial performance. Our study provided preliminary support for the use of asset specificity to guide outsourcing decisions. In particular, IT activities that have become commodities (having ‘low specificity’) should be outsourced to improve the firm's financial performance.     

Assessing the importance of industry in the adoption and assimilation of IT: Evidence from Italian enterprises

We analysed the role of industry in determining the diffusion and business value created by IT. Data was collected for this purpose by surveying 192 large enterprises in Italy. Our research revealed three findings. First, in the material services and non-hi-tech manufacturing industries, firms had a relatively limited adoption of IT, resulting in little business impact. Second, firms’ IT spending behaviour depended on their industry type and not on their IT capabilities. However their capabilities were more important than industry in explaining why firms achieved benefits from IT adoption that depended on the previous accumulation of IT resources and other capabilities. Third, industry type determined the degree to which IT affected profitability and its effectiveness in helping firms to defend their competitive advantage. Specifically, the slower the adoption of IT in an industry, the greater its impact on the firm's profitability.The implications of these findings for managers and policy-makers are discussed.     

Achieving IT‐based synergies through regulation‐oriented and consensus‐oriented IT governance capabilities

This study aims at exploring the IT governance capabilities that enable organizations to achieve IT‐based synergies. Following existing work on the contextualization of theories and drawing on the resource‐based view of the firm (RBV), we develop an RBV of IT‐based synergies in two steps. First, we adopt existing context‐specific constructs and relationships from prior work on IT governance capabilities, IT relatedness, and synergies to develop a preliminary contextualization of the RBV. Second, to further refine our theoretical framework, we conduct an exploratory field study that includes interviews with 26 CIOs and other IT executives from 21 multibusiness firms. Our findings suggest that IT governance capabilities lead to IT‐based synergies through IT relatedness and business process relatedness. We found regulation‐oriented IT governance capabilities (IT roles and IT processes) to increase IT relatedness, while consensus‐oriented IT governance capabilities (IT groups and relational capabilities) had a positive effect on business process relatedness. Our results suggest that, in isolation, IT and business process relatedness lead to IT cost synergies, while collectively enabling IT‐induced business synergies. Our study is among the first to treat IT relatedness as an endogenous construct and to explicitly integrate business process relatedness into the IT governance domain. Our context‐specific decomposition of IT governance capabilities helps to better explain their links to IT and business process relatedness. These findings contribute to a better understanding of the tension between IT‐based synergies and business‐IT alignment. Decision‐makers are guided in developing IT governance capabilities to achieve IT‐based synergies.     

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.     

The impact of the frequency of usage of IT artifacts on predevelopment performance in the NPD process

Responses from 152 managers from a wide range of industries were used to test a conceptual model examining the influence of information technology (IT) and non-IT resources on IT capabilities and their subsequent effects on predevelopment stage outcomes. It was found that the resources of IT infrastructure, IT embeddedness, firm's outward focus, and competitive intensity have varied effects on the frequency of usage of general-purpose and collaborative IT artifacts. Firms with higher levels of usage of collaborative artifacts in their NPD process have improved predevelopment stage performance, including the number of generated concepts and prototypes, and more efficient new product development (NPD) team collaboration.     

IT outsourcing success: A dynamic capability-based model

This study proposes and tests a model of information technology outsourcing (ITO) capabilities as antecedents of ITO success. Building on the dynamic capabilities perspective (DCP), the model posits that ITO sensing, ITO seizing, and ITO orchestrating capabilities will influence ITO success by way of both successful reconfiguration of IT solutions and successful delivery of IT services. Building on extant ITO research, the model also hypothesizes that contract management capabilities and relationship management capabilities will influence ITO success via the successful delivery of IT services. Data from a cross-sectional survey of 152 large U.S.-based organizations in various industries were analyzed with PLS. The results support the hypothesis that successful reconfiguration mediates the effect of dynamic capabilities on ITO success. They partially support the hypothesis of successful delivery as mediator of the effect of dynamic capabilities on ITO success. The hypothesis of successful delivery as a mediator of the effect of relationship management capabilities and contract management capabilities on ITO success is supported only for relationship management capabilities. The study offers a theoretical anchoring for the conceptualization of ITO capabilities, which complements the rich and context-specific case-based literature of ITO capabilities and extends current research by adding to existing explanations of how ITO success is achieved.     

Complementary IT resources for enabling technological opportunism

This study examines the use of information technologies (ITs), IT human capital, the level of IT vendor support, and their joint effects on firm's sensing and responding to IT changes (technological opportunism). Using data from the U.S. and Spain, the results suggest that IT use and the firm's IT human capital are the main drivers of technological opportunism (TO). The effect of IT vendor support on TO is country dependent, with a U-shaped effect in the U.S. and no effect in Spain. IT vendor support can have positive effects on TO if the firm invests in IT human capital.     

Information technology outsourcing through a configurational lens

This paper explores the value of a configurational approach to IT outsourcing by developing a framework for IT outsourcing effectiveness. Taking a process view of outsourcing and drawing on the relational view of the firm, the framework identifies four high-level dimensions that correspond to an organization’s resource position in four key areas: organizational IT value position, organizational IT asset position, relational asset position, and relational capability position. A novel structured method is used to identify the congruent outsourcing configurations within the range of possible outsourcing configurations based on the interdependencies among the four dimensions. Three congruent outsourcing configurations, designated asset dependence, relational dependence, and independence, emerge from this analysis. Drawing on the assumptions of configurational theory about organizational change and taking a dynamic perspective, the framework is extended to describe how organizations transition between outsourcing configurations over time. This paper demonstrates how a configurational approach can address three potential problems of the outsourcing literature and advance outsourcing research.     

Antecedents of Network Capability and Their Effects on Innovation Performance: An Empirical Test of Hi‐tech Firms in China

A firm's competitive advantage can come not only from internal resources but also from inter‐firm innovation networks. This paper shows that network capabilities (i.e., network visioning capability, network constructing capability, network operating capability and network centring capability) are special skills that enable values residing in network resources. Based on a sample of 211 Chinese hi‐tech firms and by applying structural equation modelling, network capabilities are found to have a positive relationship with innovation performance. Four antecedents of network capabilities – IT maturity, openness of culture, the management system involved and experience with network activities – are also identified in the research and empirically tested. The results of this study provide a new framework that describes how networked firms can gain a competitive advantage.     

Exploring information technology outsourcing relationships: theory and practice

A growing concern among the organisations who are actively involved in Information Technology outsourcing is post-contract management and the ensuing development of what many practitioners and scholars have coined the ‘outsourcing partnership’. This paper integrates theoretical concepts from organisation theory, social exchange theory, and relational contract theory with existing research on IT outsourcing, to develop a conceptual model for understanding the relationship. In particular, we conceptually elaborate and then address the relationship's properties — identified as interactions, contract, context, structure, and behavioural dimensions. Preliminary exploratory research into relationship practice in twelve organisations involved in outsourcing presents some interesting findings that advance the thinking about the outsourcing relationship. We found the conceptual model useful in elucidating important relationship management areas, highlighting not only the outsourcing relationship's contractual, social, and economic characteristics, but also many additional elements found to have relevance in practice.     

Resolving paradoxes in IT success through IT ambidexterity: The moderating role of uncertain environments

As information technology (IT) success is both essential and elusive, researchers and practitioners are faced with an ongoing challenge to determine what IT capabilities should be developed to ensure IT success. Drawing on the paradox and ambidexterity theory, we highlight paradoxes in IT success and propose that firms manage these paradoxes by developing an IT ambidexterity capability. We hypothesize that IT ambidexterity capability enhances IT success, and that uncertain environments strengthen this relationship. Our hypotheses find support in a sample of 292 British high-tech firms. This research contributes to conceptualize paradoxes in IT success and advances the theory for a more comprehensive understanding of the impacts of IT ambidexterity capability.     

Knowledge based transactions and decision framing in Information Technology Outsourcing

Knowledge based transaction costs (KTC) are knowledge related costs associated with the transfer of an information technology (IT) firm process outside its boundaries to a contractual partner. In this paper, we show that these knowledge based transaction costs are omitted variables in studies of firm boundaries that may reduce the likelihood of outsourcing. KTC arise from the risk of expropriation of firm knowledge by their contractual partners. In addition, KTC arise from the stickiness of knowledge, as transfer tacit and complex knowledge is both difficult to transfer and difficult to assimilate. Finally, KTC decrease with the knowledge and capabilities that contractual partners have, as this increases the partner firm’s ability to assimilate knowledge transferred. While all three sources of KTC lower the likelihood of outsourcing, the way managers frame the outsourcing decision is also important. As a result, managers may engage in outsourcing of IT processes even though they risk greater expropriation hazards in order not to lose out on higher expected outsourced performance. We validate these arguments based on a study of 180 IT processes from firms listed on the French (CAC40) and British (FTSE100) stock exchanges.     

IT outsourcing research from 1992 to 2013: A literature review based on main path analysis

Applying main path analysis, this paper investigates the IT outsourcing (ITO) field by identifying a set of papers that have played a central role in the development of the field and the major research themes emerging from the citation patterns. We selected the top 120,000 main paths from 6.45 million main paths among 798 ITO papers, resulting in a data set of 280 papers that represent the most important nodes supporting ITO knowledge flow. Based on our analysis of the multiple main paths, twelve major research themes emerged: ITO motivations, ITO decisions, ITO risks, debate around transaction cost theory, client–vendor relationship, the vendor's perspective, psychological and formal contracts, ASP, BPO, opensourcing and crowdsourcing, offshore outsourcing, and multisourcing. Finally, we discussed future directions of ITO research based on our findings. Our study is among the few studies that have used bibliometric analysis methods to analyze and visualize the citation network characterizing the rich body of ITO literature. The main path analysis precisely identified and visualized the major knowledge flow in the evolution of ITO research and major ITO research streams, thus providing an in-depth understanding of ITO research in the last 20 years.     

我国IT服务行业的发展前景与人才储备需求分析

随着经济全球化发展趋势加快和市场竞争的加剧,如何专注自己的核心业务已经成为企业最重要的生存法则之一.2000年至今,全球IT服务外包业务高速增长带动了全球IT服务外包产业的快速发展,IT服务企业雨后春笋一般纷纷成长起来,但IT服务企业数量和规模还远远不够,IT服务人才短缺和结构的不合理严重制约了我国IT服务外包产业的快速发展.随着中国IT技术市场与国际标准的全面接轨,IT服务人才的培养和储备已经成为我国与各国IT服务行业之间竞争的主要砝码.本文分析了我国IT服务行业的发展前景,以及对IT服务人才的潜在需求,以帮助IT服务企业做好人力资源规划,同时也为高等学校培养IT服务人才提供参考依据.     

Factors considered when outsourcing an IS system: an empirical examination of the impacts of organizational size,strategy and the object of a decision

As IT expenditures have been growing over the last few years, organizations have started to scrutinize them more closely and some are deciding to outsource parts of their Information Systems (IS) operations. Unfortunately, there is a lack of research on the impact that the object of an outsourcing decision may have on the factors considered when making such a decision. The impact of organizational size and the firm's strategy has also not been conclusively established in the literature. This paper examines and compares the different supplier, internal, technology and cost factors considered when outsourcing Online Transaction Processing (OLTP) or Decision Support Systems (DSSs) (the object of a decision). It also examines the divergent decision factors for large, medium and small organizations, and the competitive strategy's impact on the factors that are considered. The paper is based on a study with samples from four large SAP Conferences and includes 1889 individuals working in organizations that use enterprise resource planning software. This research found that the object being outsourced, the firm's competitive strategies, and the organizational size are factors that significantly influence the outsourcing decision process. We found that the relative importance of decision factors for the outsourcing of OLTP is significantly different from those for a DSS and that, where the outsourcing object is of strategic importance, there is a closer attention to internal factors. Our findings confirm that outsourcing strategies are aligned with organizational strategies. For example, cost factors dominate in the outsourcing decision among organizations that employ a low-costs strategy as compared to those following a differentiation or niche strategy. Also, compared to firms pursuing other competitive strategies, for the outsourcing of DSS, differentiators place a significantly higher emphasis on supplier factors. Regarding the role of company size, we found significant differences in the importance given to supplier, internal, technology, and cost factors by organizations of different sizes. For example, compared to smaller organizations, larger organizations gave less importance to supplier and technology factors and more importance to cost factors.