Exploring the perceived business value of the flexibility enabled by information technology infrastructure

  • Authors:

  • Lior Fink;Seev Neumann

  • Affiliations:

  • Department of Industrial Engineering and Management, Ben-Gurion University of the Negev, P.O. Box 653, Beer-Sheva 84105, Israel;The Leon Recanati Graduate School of Business Administration, Tel Aviv University, Israel

  • Venue:
  • Information and Management
  • Year:
  • 2009

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Abstract

We developed a multidimensional definition of IT infrastructure (ITI) and applied it in exploring the perceived strategic payoffs of ITI-enabled flexibility. We began by developing a typology of theoretical approaches that can be used to organize the literature and then developed a multidimensional model by conceptualizing how flexibility can be enabled through technical, human, and process elements of ITI and how these are interrelated. We used a resource-based view of the firm and a dynamic capabilities perspective to account for competitive impacts of the flexibility. Finally, we hypothesized on the moderating effects of organizational size and reporting level of the top IT executive. Data collected from 293 IT managers showed that the range of managerial ITI capabilities, which were positively affected by all areas of IT personnel knowledge and skills, was responsible for the competitive impacts of the ITI-enabled flexibility. Multigroup analyses showed that large organizational size or reporting to the CEO reduced the positive effects of the range of managerial ITI capabilities on competitive impacts.