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.     

Outsourcing capabilities,organizational structure and performance quality monitoring: Toward a fit model

Provider IT services has grown substantially, since the advent of IT. However, research on it has been limited and mainly qualitative. A recurring provider problem was identified: a lack of attention to the performance of the IT they provide. Due to uncertainty or change in the client environment, the fit between capabilities and organizational structure of outsourcing providers must be balanced. Here we present the results of an exploratory quantitative empirical study among outsourcing experts involved with three different types of IT outsourcing providers: domestic, offshore, and global.     

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.     

Investigating the effects of business process orientation on organizational innovation performance

Business process orientation (BPO) supports business process management by reorienting employees’ focus from functional performance to customer value adding. While it is generally believed that BPO improves various aspects of organizational performance, there has been a lack of empirical evidence. The results of this study showed that BPO significantly influences organizational innovation performance and identified the underlying mechanism for the effect. Interestingly, it is found that a process view is not sufficient to enhance organizational innovation performance. Cross-functional integration may also need to be carefully managed for innovation. These findings improve the current understanding of BPO and offer managerial suggestions for enhancing innovation.     

On the performance of B2B e-markets: An analysis of organizational capabilities and market opportunities

This research is a study of factors leading to the success of business-to-business (B2B) electronic marketplaces (EMs). A model based on both organizational capability and market opportunity theories was developed to explain the performance of B2B EMs. Organizational capabilities included service provision capability and its enabling capabilities, entrepreneurial orientation and human resource capability, whereas market opportunity was modeled as market size and e-commerce awareness of the industry. Data were collected from 128 B2B EMs in China and analyzed using Partial Least Squares. Results suggest that the research model explains the performance of B2B EMs well. More specifically, among the two service capabilities studied, service width contributes significantly to EM performance, while the effects of service depth are yet to be seen. Moreover, the enabling organizational capabilities and market opportunity factors affect EM performance both directly and indirectly through their enhancement of EM service provision capability.     

The impact of information technology on individual and firm marketing performance

The perceived impacts of information technology use on firm marketing organization performance are examined. A theoretical model is presented linking organizational and end-user traits, information quality, system/service quality, industry traits, and tasks performed using a system to perceptions of organizational performance impacts through ease of system use, perceived individual performance impacts (i.e. perceived usefulness), attitudes toward using the system, and system use. The empirical examination uses a mail survey of US marketing executives to collect the data. The quantitative technique used is structural equation modeling. The results indicate that measures of organizational traits, individual traits, information quality, system/service quality, and tasks performed using the system impact perceived performance of the marketing organization mediated individual performance impacts (i.e. perceived usefulness), attitudes toward using the system, and system use. Managerial implications and conclusions are presented based upon these results.     

Firm-level benefits of IT-enabled resources: A conceptual extension and an empirical assessment

While the business value of IT (BVIT) is central to the IS discipline, only recently a possible chain of causation from IT assets (i.e., fungible, widely available, commodity-like, technology-based products) to firm performance has been conceptually specified. Furthermore, little empirical evidence exists regarding IT assets’ business value. In light of this paucity, this paper makes several contributions to IS research and practice. First, it advances the BVIT literature by empirically testing a model that traces a path from IT assets through IT-enabled resources to firm performance. Second, it extends the BVIT and resource-based view (RBV) literatures by explicating and testing the impact of a firm’s external environment on its IT-enabled resources. Third, it builds on recent literature to argue for, and test, two distinct forms of firm-level outcome: operational and strategic benefits. Finally, the paper contributes to managers’ and IS practitioners’ knowledge by demonstrating the transformative capacity of IT assets on the strategic potential of organizational resources. Empirically, the paper develops and employs valid and reliable scales to test the research model using survey data on IT-enabled customer service departments. The findings demonstrate that when an IT asset is combined with an organizational resource, the extent of synergy borne out of the resulting relationship can positively impact the strategic potential of the ensuing IT-enabled resource. This IT-enabled resource, in turn, is positively associated with firm-level benefits. Further, the external environment is shown to exert a positive effect on the strategic potential of outside-in IT-enabled resources. In sum, this paper offers several important conceptual and empirical contributions to a stream of research that is at the core of the IS discipline.     

The impact of information technology on individual and firm marketing performance

The perceived impacts of information technology use on firm marketing organization performance are examined. A theoretical model is presented linking organizational and end-user traits, information quality, system/service quality, industry traits, and tasks performed using a system to perceptions of organizational performance impacts through ease of system use, perceived individual performance impacts (i.e. perceived usefulness), attitudes toward using the system, and system use. The empirical examination uses a mail survey of US marketing executives to collect the data. The quantitative technique used is structural equation modeling. The results indicate that measures of organizational traits, individual traits, information quality, system/service quality, and tasks performed using the system impact perceived performance of the marketing organization mediated individual performance impacts (i.e. perceived usefulness), attitudes toward using the system, and system use. Managerial implications and conclusions are presented based upon these results.     

Artificial intelligence capability: Conceptualization,measurement calibration,and empirical study on its impact on organizational creativity and firm performance

Artificial intelligence (AI) has been heralded by many as the next source of business value. Grounded on the resource-based theory of the firm and on recent work on AI at the organizational context, this study (1) identifies the AI-specific resources that jointly create an AI capability and provides a definition, (2) develops an instrument to capture the AI capability of the firms, and (3) examines the relationship between an AI capability and organizational creativity and performance. Findings empirically support the suggested theoretical framework and corresponding instrument and provide evidence that an AI capability results in increased organizational creativity and performance.     

An empirical study of the effects of knowledge sharing and learning behaviors on firm performance

Knowledge sharing and learning behaviors in the workplace are believed to be very important to the success of firms. In this study, the relationships between knowledge sharing and learning behaviors, business process improvement, product and service offerings, and organizational performance are examined based on a sample of 134 firms engaged in manufacturing, and wholesale or retailing operations. Data analyses using the partial least squares statistical technique revealed that knowledge sharing and learning behaviors are positively associated with business process improvement, and product and service offerings. Business process improvement and product and service offerings are positively associated, and they in turn are positively related to organizational performance. The findings reinforce the importance of knowledge sharing and learning to companies. Executives should encourage knowledge management and organizational learning activities within their firms, and give proper considerations to the strategies and implementation of programs supporting these activities in order to enhance firm performance.     

Information technology,the organizational capability of proactive corporate environmental strategy and firm performance: a resource-based analysis

The study of the relationships between information technology (IT), environmental organizational issues and firm performance is a cutting-edge research topic for the information systems (IS) community. However, at present we know very little about these relationships. Drawing on the perspective of IT-enabled organizational capabilities and the literature on organizations and the natural environment, our study introduces conceptually the construct organizational capability of proactive corporate environmental strategy to the IS field. We propose that IT capability may enable the implementation of a proactive environmental strategy and that this strategy could play a significant role in determining the business value of IT. Using structural equations modeling with data collected from 63 firms, we find that IT capability is an enabler of proactive environmental strategy and that this strategy plays a significant role in mediating the effects of IT on firm performance. Our study provides initial evidence on the role of IT in the implementation of proactive environmental practices. Our results suggest to IT executives that their decisions matter in shaping environmental sustainability, which in turn will generate business value from IT.     

A dynamic methodology and associated tools to assess organizational capabilities

The assessment of organizational capabilities becomes a great challenge in extended and flexible organizations. This assessment is generally independent from the evaluation of operational results and could become isolated from the rest of the global performance system and face validity issues.     

Balancing exploration and exploitation of IT resources: the influence of Digital Business Intensity on perceived organizational performance

Facing a barrage of novel information technology (IT), organizations must invest on the basis of the impact of IT capabilities on the organization’s performance. This research extends Bharadwaj’s (MIS Quarterly 169–196, 2000) resource-based view of the relationship between IT capability and performance by introducing both the mediating and moderating effects of Digital Business Intensity (DBI). Empirical data collected from CIO’s from US firms reveal that although IT capability positively influences organizational performance, this relationship may differ in strength at different levels of DBI. Our study also finds that IT capability is important in determining DBI, which in turn influences organizational performance. Findings highlight tensions between DBI exploration and IT capabilities exploitation. Results also suggest that companies that leverage their existing IT capabilities to drive DBI are more adept at securing performance returns. However, when DBI investments do not complement existing IT capabilities, DBI appears to dampen performance, further accentuated for high-DBI firms.     

The relationship between resources and capabilities of new ventures in emerging economies

Despite the fact that the resource-based view has drawn a great deal of attention in studying new ventures, our understanding on resource management in the emerging economies is limited and there are many unsolved issues. In this paper, theoretical reasoning approach is applied to analyze the relationship between the entrepreneurial resources and the organizational capabilities (including operating and dynamic capabilities) for new ventures. An empirical study in the context of emerging economy in China is conducted to verify the theoretical reasoning. As information technology becomes a key element for new ventures, the enterprise resources relevant to the network technology and e-commerce are especially focused, as well as the impact of information acquisition on the resource combination. The results from the theoretical and empirical study have shown that resource combination mediates the relationship of entrepreneurial resources and organizational capability. It is also found that the information acquisition affects the organizational capabilities significantly; however, there is an inverted U-shape relationship between the information acquisition and the resource combination in emerging economies .     

Dynamic capabilities and the role of organizational knowledge: an exploration

Two concepts, dynamic capabilities and knowledge management, are widely assumed to be linked to sustained competitive advantage, although researchers have found it hard to substantiate these assumptions. It has also been suggested that the interplay between the two is important, and that it needs to be better understood. In this paper, we therefore look at the nature of, and interaction between, organizational knowledge and dynamic capabilities in some detail. We do this first through a literature review, and second, through a case study of the evolution of a new international business. The study illustrates how forms of knowledge, particularly when transmitted via social interactions, can act as a source of dynamic capabilities, and we conclude with suggestions about further research on the social and political interactions between the two.     

The impact of AMT practices on firm performance in manufacturing SMEs

This research deals with the use of advanced manufacturing technology (AMT) in small and medium-sized enterprises (SMEs). The main purpose of this study is to find out the types of AMT to adopt to improve the manufacturing parameters that have significant impact on firm performance. In the research firstly, the current situation in AMT use in SMEs is examined. Secondly, the relationship between manufacturing parameters and firm performance is investigated. Finally, the relationship between the types of AMT and manufacturing parameters is investigated. The sampling pool includes 102 manufacturing SMEs that introduced AMTs. Our findings show that local area network, computer-aided design, and computer-aided manufacturing technologies are the most commonly used and automated storage, robotics, and wide area network technologies are the least commonly used AMTs in SMEs. In addition, the statistical association between manufacturing parameters and firm performance indicate that product design performance, fixture utilization, setup and production planning performance have positive impact, while capacity utilization and finished product inventory need have negative impact on firm performance.     

Building capabilities for software development firm competitiveness: The role of intellectual capital and intra-firm relational capital

Software is critical to nearly every organization's performance and can create value for all organizational functions. Given that software development firms that create solutions for client organizations are by necessity constantly seeking competitive advantage, the central objective of this research was to investigate the impact of capability building on software development firm competitiveness. Developing software is a knowledge-intensive and often complex process that requires internal exchanges among knowledgeable and capable employees within the firm. Accordingly, for software development firms, capability building is critical for competitive advantage. This research draws from capability, intellectual capital, and relational capital research streams and develops an intra-firm relational capital to intellectual capital model of capability building for software development. Analyses of data from key informants of 200 software development firms provide strong support for our model. We discuss the implications of our research for the competitiveness of software development firms for capability, intellectual capital, and relational capital theories and for firm practices.     

Board-level IT governance and organizational performance

Research on the strategic management of Information Technology (IT) resources has mostly focused on the oversight provided by the management team as a means to increase organizational performance. In recent years, boards of directors have also increased their involvement in IT matters, and various theoretical lenses suggest that this oversight too has the potential to influence organizational performance. Hence, this study synthesizes the resource-based and contingency views of MIS with corporate governance theories, and examines key antecedents and consequences of board-level IT governance (ITG) using a multi-method approach. Structural Equation Modelling analysis applied to organization-level data collected from 171 board members suggested that the level of ITG exercised by boards was contingent upon the organization's ‘IT use mode’, along the two dimensions of need for (a) fast and reliable IT, and (b) new innovative IT. But, the findings further suggested that the contingency approach may be suboptimal because it can cause new ways of leveraging IT to be ignored. High levels of board-level ITG, regardless of existing IT needs, increased organizational performance. This phenomenon was illuminated with applicability checks. Moreover, content analysis and structured interviews with board members further enriched these insights.     

The effects of organizational citizenship behaviors on ERP system success

Although the research on organizational citizenship behaviors (OCBs) has increased dramatically in diverse fields during the past decade, little is known about the OCBs in the information systems area. The purpose of this study was to explore the effect of OCBs on enterprise resource planning (ERP) system success. In order to perform empirical analyses, measurements on the OCBs constructs based on the five dimensions of [Organ, D.W. (1988). Organizational citizenship behavior: The “Good Soldier” syndrome. MA: Lexington Books]: altruism, conscientiousness, courtesy, civic virtue, and sportsmanship were developed, and the research model including the relationships between the OCBs constructs and ERP system success variables of information quality, work efficiency, and intention of IT innovation was proposed and empirically analyzed using structural equation modeling.     

Knowledge sharing,innovation and firm performance

This study investigates the quantitative relationship between knowledge sharing, innovation and performance. Based on the literature review, we develop a research model positing that knowledge sharing not only have positive relationship with performance directly but also influence innovation which in turn contributes to firm performance. This model is empirically tested using data collected from 89 high technology firms in Jiangsu Province of China. It is found that both explicit and tacit knowledge sharing practices facilitate innovation and performance. Explicit knowledge sharing has more significant effects on innovation speed and financial performance while tacit knowledge sharing has more significant effects on innovation quality and operational performance.