The Implications of Information Technology Value:A Perspective of Value Creation Logic
Date Issued
2015
Date
2015
Author(s)
Chen, Po-Yen
Abstract
The effectiveness of IT capability has been challenged in recent years. Can IT capability still enable competitive advantage? Are there any conditions that may influence this relationship? In particular, industry factors are increasingly important for IS activities. Unfortunately, at the industry-level, the results are less clear. Previous studies usually ignore how IT resources or capabilities are deployed in various industries and how competitive advantages are created and sustained in the processes. Indeed, the concept of competitive advantage is rooted in a firm’s value creation logic. If the relationship between value creation logic and IT capability-enabled competitive advantage can be clarified and theorized, the contradiction findings of IT capability and the confused results at the industry-level may be resolved. Three value configurations (i.e., value chain, shop, and network) can be seen as three types of value creation logics and be mapped to various industries. InformationWeek 500 lists are used from 1998 to 2011 to identify 379 firms with superior IT capability. Their firm performance is compared with their peers’. The empirical results show that competitive advantages are most significant in value chain-based industries and are least significant in value network-based industries. Value creation logic significantly moderates IT capability-enabled competitive advantages at the industry-level.
Subjects
IT value
information technology capability
value creation logic
value configuration
the creation and sustainability of competitive advantage
Type
thesis
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ntu-104-D00725001-1.pdf
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