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.     

Information technology capability and firm performance: Role of industry

Despite several calls for considering industry in the IS value research, few studies investigated the relationship between benefits of IT and industries. This study extends Chae et al. (2014) by investigating how industry influences the relationship between IT capability and business performance. Unexpectedly, it finds that the control group in the industries in which the "transform" IT strategic role dominates showed superior performance than the IT leader. Also, the IT leaders in the "automate" IT strategic industry did not exhibit better business performance than the control firms. We discuss the implications of these findings.     

IT centrality,IT management model,and contribution of the IT function to organizational performance: A study in Canadian hospitals

The characterization of the IT function in organizations represents a central topic of investigation in the information systems field. The main purpose of this study was to predict the contribution of the IT function to organizational performance by focusing on the centrality of IT and the IT management profile as primary determinants. A cross-sectional survey of CIOs working in Canadian hospitals reveals that IT centrality positively influences the strategic orientation of the IT management model. In turn, the stronger the strategic orientation of the IT management model in place, the greater is the IT function’s contribution to organizational performance.     

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.     

Strategy, IT applications for planning and control, and firm performance: The impact of impediments to IT implementation

Our study examined the association among strategy, the extent of IT applications to 12 planning and control functions, and firm performance. Special attention was paid to the moderating effect on these relationships of 15 technical, human, and organizational impediments to IT implementation. We analyzed survey data obtained from 296 Taiwanese companies, supplemented by financial data from publicly disclosed financial reports. Results indicated that strategy significantly influenced the extent of IT applications for planning and control. In turn, the extent of IT applications had a significant direct effect on firm performance, while the direct effect of strategy was insignificant. The relationship between strategy and the extent of IT applications, and between the latter and firm performance were both stronger when the level of impediments to IT implementation was low. The findings went beyond these general relationships to reveal systematic differences in the specific IT applications and impediments of firms pursuing different strategies.     

Unpacking the effect of IT capability on the performance of export-focused SMEs: a report from China

Abstract.  Export-focused small and medium-sized enterprises (SMEs) in China face a number of barriers to success, two primary ones being the liability of foreignness and resource scarcity. In order to transcend these challenges and be able to survive/prosper in the hypercompetitive international market, where players include large resourceful multinational organizations with experience in varied national contexts, these firms need to develop different organizational capabilities. In this paper, we specifically examine the role of a key organizational capability – information technology (IT) capability – and its different dimensions, in determining performance of export-focused SMEs in China. Our study reveals that IT capability has a positive impact on such firms' performance. This finding indicates the need for their owners/managers to invest in IT capability. Further, the study also highlights specific sub-dimensions of IT capability that export-focused Chinese SMEs should (or should not) develop, so as to derive maximum performance-related gains for the minimum amount spent on IT.     

IT应用运维自动化研究与应用

本文就IT应用运维的现状、运维对象、工作内容以及面临的挑战进行分析,有针对性的就如何提高IT应用运维的自动化程度给出了建议和方案,并扼要介绍运维自动化带来的效果.     

Impact of IT Governance and IT Capability on Firm Performance

Based on resource-based and strategic choice theory, this research empirically validates that IT governance is an important antecedent of IT capability, which in turn results in improved firm performance. This article contributes to the IS literature by proposing a comprehensive measure of IT governance based on secondary data, and simultaneously examining the impact of IT governance and IT capability on firm performance.     

Maximizing the positive influence of IT for improving organizational performance

In the analysis of whether information technology (IT) has an impact on organizational performance, focus is usually placed on the relationship between an organization’s investments in IT and that organization’s performance. Therefore, it is standard to devote special attention to the size and complexity of the organization, to the investments in other organizational resources that may affect the performance of IT, and to the manner in which the two variables are measured. However, one area that has not been well explored is the manner in which the relationship between investments in IT and organizational performance develops. In this article, we show empirically that the planning and management of IT influence the organization’s endowment of resources (physical and human), which consequently has positive effects on each of the IT-related areas usually found in organizations (applications, reliable and secure systems and communications, and training and support). In turn, the functioning of these areas influences the impact of IT on the organization, which then has positive effects on organizational performance. We have used data corresponding to IT management in Spanish universities, as well as independent rankings that are useful for evaluating their performance.     

Elucidating the role of IT/IS assessment and resource allocation in IT/IS performance in hospitals

Although similar to firms in other industries that strive to increase their operational efficiency by implementing IT/IS, hospitals face difficulties in obtaining the corresponding benefits of investing in IT/IS. This study investigates the relations among IT/IS performance, IT maturity, IT/IS assessment, IT/IS resource allocation, and user satisfaction in hospitals. IT/IS performance in hospitals is evaluated using a designed questionnaire, along with a case study undertaken to discuss IT/IS assessment and the effect of IT/IS on hospital procedures. The analysis results indicate that hospitals have a higher IT maturity, stronger intention to implement IT/IS assessment, and better IT/IS resource allocation capabilities than firms in other industries. Moreover, both IT/IS assessment and user satisfaction affect IT/IS performance in hospitals.     

JEETuningExpert: A software assistant for improving Java Enterprise Edition application performance

Designing a JEE (Java Enterprise Edition)-based enterprise application capable of achieving its performance objectives is rather hard. Predicting the performance of this type of systems at the design level is difficult and sometimes not viable, because this requires having precise knowledge of the expected load conditions and the underlying software infrastructure. Besides, the requirement for rapid time-to-market leads to postpone performance tuning until systems are developed, packaged and running. In this paper we present a novel approach for automatically detecting performance problems in JEE-based applications and, in turn, suggesting courses of actions to correct them. The idea is to allow developers to smoothly identify and eradicate performance anti-patterns by automatically analyzing execution traces. The approach has been implemented as a tool called JEETuningExpert, and validated using three well-known JEE reference applications. Specifically, we evaluated the effectiveness of JEETuningExpert for detecting performance problems, measured the overhead imposed by online monitoring each application and the improvements were achieved after following the suggested corrective actions. These results empirically showed that the refactored applications are 40.08%, 76.94% and 61.13% faster, on average.     

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.     

IT capability and organizational performance: the roles of business process agility and environmental factors

The business value of information technology (IT) has been one of the top concerns of both practitioners and scholars for decades. Numerous studies have documented the positive effects of IT capability on organizational performance but our knowledge of the processes through which such gains are achieved remains limited due to a lack of focus on the business environment. Such a linkage therefore remains the subject of debate in the information systems literature. In this study, we fill this gap by investigating the mediating role of business process agility and the moderating roles of environmental factors. On the basis of matched survey data obtained from 214 IT and business executives from manufacturing firms in China, our analyses show that even though firm-wide IT capability presents the characteristics of rarity, appropriability, non-reproducibility, and non-substitutability, its impact on organizational performance is fully mediated by business process agility. Our results also show that the impact of the environment is multifaceted and nuanced. In particular, environmental hostility weakens the effect of IT capability on business process agility, while environmental complexity strengthens it. The theoretical and practical implications of this study, and its limitations, are also discussed.     

IT治理决策中业务应用需求的分析与应用

在深入剖析了业务应用需求的主要研究内容的基础上,以CSF思想为指导,提出一种业务应用需求中关注的企业核心流程需求的识别方法,给出一种确定重构业务流程的方法和理论,可以作为在实施IT治理中业务应用需求分析的参考。并在此基础上,将此方法应用于中海集团的IT治理决策中,得出中海集团的核心业务流程。     

Can intrafirm IT skills benefit interfirm integration and performance?

This study develops a model to examine whether intrafirm, hard and soft IT skills have cross-boundary effects on interfirm collaboration and integration, thus leading to better supply-chain performance. A model with eight hypotheses was developed and tested using data collected from 250 Taiwanese manufacturing firms. Seven hypotheses find empirical support. The results show that intrafirm IT skills indeed can benefit interfirm collaboration and integration and thus, supply-chain performance. Our findings suggest that the value of skilled IT professionals for interfirm integration, supply-chain performance and collaborative relationships between firms is critical for realizing that value.     

Drivers and export performance impacts of IT capability in ‘born‐global’ firms: a cross‐national study

Past research focusing on large firms has argued that information technology (IT) capability enhances firm performance. However, these studies have seldom explored why firms develop IT capability, and have also left a void the understanding of the role of IT capability in Small‐ and medium‐sized enterprises (SMEs). This study attempts to fill that void by examining the effect of relevant environmental and firm‐level factors on IT capability, and the effect of IT capability on the export performance of Chinese and US born‐global firms, a special breed of export‐focused SMEs. Results indicate that environmental factors such as information intensity, and firm‐level factors such as international entrepreneurial orientation, prompt born‐global firms to develop IT capability. Further, our results also strongly emphasise the positive role that IT capability plays on the performance of born‐global firms. Finally, a comparative analysis of the Chinese and US born‐global firms revealed a lack of a cross‐cultural difference in the factors leading these firms to develop IT capability, therefore supporting the ‘convergence’ perspective in cross‐cultural research.     

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.     

Job performance through mobile enterprise systems: The role of organizational agility,location independence,and task characteristics

This study examines how organizational workers improve their perceived job performance through the use of Mobile Enterprise Systems (MES), while also investigating the impact of perceived organizational agility and location independence on technology acceptance of MES. This study also tests the moderating role of task characteristics (task significance and feedback) on the relationship between MES usage and perceived job performance. Based on the extant technology acceptance model (TAM), we proposed an extended TAM and conducted a large-scale survey among organizational workers who use MES in their workplace across industries. Our findings suggest that both positive attitude toward MES and a high level of habitual MES usage are positively associated with perceived job performance, and that task characteristics positively moderate the relationship between habitual usage (attitude toward MES) and perceived job performance. More importantly, we also found that organizational agility is positively associated with both perceived ease of use and perceived usefulness, while location independence is positively associated with perceived ease of use. The present findings provide us with a deeper understanding of how organizational workers utilize MES and how they improve their perceived job performance through the use of MES. Based on these findings, we discuss further implications and limitations.     

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.     

Explaining IT governance disclosure through the constructs of IT governance maturity and IT strategic role

This study investigates the relation between the maturity of IT governance processes and the IT governance disclosure of firms. Furthermore, it examines whether the strategic role of IT in an industry induces systematic variation in IT governance disclosure. Based on a content analysis of annual reports and a field survey on the maturity of the implementation of COBIT processes, the results demonstrate a role of IT governance frameworks in stimulating accountability and transparency via enhanced external reporting of relevant IT information to external stakeholders, in particular in settings where the strategic role of IT is high.