Study note on IS/IT capability

Study note on IS/IT capability

References with extracted contents

Khani, N., K.M. Nor, H. Hakimpoor, M. Bahrami and S. Salavati. 2011. "IS/IT capability and strategic information system planning success" International Journal of Management Information Technology 3(3) August: 28-37.

"....when all firms have access to a similar technology, this is management differences that determines CA [competitive advantage]. Accordingly, acquiring sustained IT-based CA requires organizational infrastructure to provide innovative action strategies and needs IT management skills to contribute to utilizing intangibles, business and human resources. In essence, this is management differences that determines economic superiority that firms gain from their IS/IT investments. ..... In this regard, researchers ([14], [15], [16]) have shown that in order to use IT to improve organization’s ongoing competitiveness, “IS capability” has to be developed";

"Using RBV [resource-based view] perspective in strategic management thinking, the focus on the demand side has changed with emphasize on supply side that is associated with organizational capabilities. IT resources are software, hardware, communication, IT personnel and IT applications which are hardly inimitable and unique and consequently cannot be a source of competitive advantage [18]. Instead, Mata et al. [5] have introduced IT attributes (i.e. managerial IT skills, technical IT skills, proprietary technology, access to capital and customer switching costs) and have argued that only managerial IT skills can provide distinct advantage. Then, Bharadwaj [14] showed that although IT resources have no innate value, a combination of IT resources and human and business resources, as complementary resources, can guarantee higher firm performance";

"According to Srinivasan et al. [20] definition, resource is a particular asset or know-how while the capability comprises of skills gained through firm’s processes that empower organization to use its assets. Defining competence as a firm-wide concept that represents a group of technologies and skills, Peppard and Ward [7] discuss that the capability notion reflects the strategic application of those competencies in order to attain business objectives";

Santhanam, R. and E. Hartono. 2003. "Issues in linking information technology capability to firm performance" MIS Quarterly 27(1) March: 125-153.

"Bharadwaj (2000) proposed that if firms can combine IT related resources to create a unique IT capability, it can result in superior firm performance. She demonstrated that the average performance of firms identified as possessing superior IT capability was significantly superior to the average performance of a matched set of firms";

"According to the RBV, the benefits of superior IT capability must be sustainable over time. Barney (1991) states that sustained competitive advantage does not imply that the benefits will last forever but indicates that it will not "be competed away by the duplication efforts of other firms." He states this as an important research issue";

"....the concept of IT capability was developed using the premise that while resources can be easily duplicated, a unique set of capabilities mobilized by a firm cannot be easily duplicated and will result in sustained competitive advantages. Researchers have emphasized that IT investments are made with long-term goals and there is a time lag in obtaining benefits";

Roman Kmieciak, Anna Michna, Anna Meczynska, (2012) "Innovativeness, empowerment and IT capability: evidence from SMEs", Industrial Management & Data Systems, Vol. 112 Issue: 5, pp.707-728.

".... the resource-based view was developed for research of IT adoption in firms. In compliance with this approach, sources of competitive advantage include different IT-related resources and skills which combine to form an IT capability that is valuable, rare, inimitable, and non-substitutable (Bharadwaj, 2000). Building the IT capability of an organization is supported by introducing IT governance and assessment of IT maturity. IT governance can help to define a strategic roadmap for developing IT capability";

"IT capability is one of the critical firm capabilities that may contribute to superior performance (Mata et al., 1995). However, where the direct link between IT capability and firm performance is concerned, earlier studies have been mainly focused on large enterprises, and have reported mixed results .... Because SMEs are different from large ones in a number of ways, IT theories and practices developed for large enterprises may not be suitable for SMEs";

"Some researchers maintain that IT has a direct effect on firm performance as well as an interactive effect on other constructs, or alternatively that only the interactive effects are significant (Wade and Hulland, 2004). IT can be used to leverage other resources or capabilities and strengthen their impact on firm performance";

"IT capability is defined as a firm’s ability to acquire, deploy and leverage its IT-related resources in combination with other resources and capabilities in order to achieve its business objectives (Bharadwaj, 2000)";

Sukanya Panda, Santanu Kumar Rath, (2017) "The effect of human IT capability on organizational agility: an empirical analysis", Management Research Review, Vol. 40 Issue: 7, pp.800-820.

"Presently, firms are investing in information technology (*IT)[1] so as to generate IT-enabled innovative and rapid responses to cope with unanticipated changes .... Based on this rationale, IT infrastructure facilitates the rapidness of firms by means of high-velocity information transfer to quickly realize and respond to market volatility. According to Overby et al. (2006) and Chung et al. (2012), effective IT deployment fosters a firm’s sensing ability by fast identification and interpretation of various market opportunities and the responding ability deals with the quick transformation of knowledge into action";

"Following Fink and Neumann (2009), IT comprises both human and technical elements. According to them, the human IT elements represent the business knowledge/skills, technical knowledge/skills and behavioral knowledge/skills of IT personnel and the technical IT elements outline compatible operating systems, software applications, network connectivity, efficient communication protocols, effective data management systems, etc.";

"An extensive review of past literature suggests that the research showcasing the relationship between human IT capability and organizational agility is very thin on the ground. Moreover, it has been found that the literature is silent regarding the precise empirical investigation involving the human IT capability–agility linkage. Because most of the studies have emphasized on the technical components of IT infrastructure (as predictor variable), very few of them have focused on the human IT factors";