The synergistic effects of IT-enabled resources on organizational capabilities and firm performance

Authors:
Jian-Liang Chen
Affiliations:
Department of Information Management, National Penghu University of Science and Technology, No. 300, Liu-Ho Rd., Makung City, Penghu County 88046, Taiwan, ROC
Venue:
Information and Management
Year:
2012

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Abstract

Computing the value of IT investments and clarifying how the portfolio of IT/IS resources affect a firm's performance and sustainable competitive advantage are critical issues today. We attempted to develop an effective measurement technique and use organizational theory to discover the strategic role of IT-enabled resources in the firm's competitive agenda. Based on a resource-based view of the firm, we proposed a way to evaluate the synergistic effect of such resources on the firm's capabilities, as they, influence the firms' strategic objectives and improve its financial performance. The technological, human, and organizational resources work together to generate sub-additive cost and super-additive value synergies. Operations, R&D, and marketing capabilities allow firms to implement a business strategy that reflects its customer needs. A survey was conducted to check our framework. Our findings should provide valuable decision guides for practitioners when choosing a portfolio of IT/IS resources for implementing business strategies.