Core versus peripheral information technology employees and their impact on firm performance

Authors:
Ling Liu;Daniel Q. Chen;Indranil Bose;Nan Hu;Garry D. Bruton
Affiliations:
Department of Accounting and Finance, College of Business, University of Wisconsin, Eau Claire, USA;Information Systems and Supply Chain Management Department, Neeley School of Business, Texas Christian University, Fort Worth, TX 76109, USA;Indian Institute of Management Calcutta, Diamond Harbour Road, Joka, Kolkata 700104, India;Department of Accounting and Finance, College of Business, University of Wisconsin, Eau Claire, USA;Department of Management, Neeley School of Business, Texas Christian University, Fort Worth, TX 76109, USA
Venue:
Decision Support Systems
Year:
2013

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Abstract

Scholars have widely argued, but not previously examined, that core employees with firm specific skills are critical to the firm's strategic success. This argument has led to the belief that employees whose skills are not firm specific can be readily replaced in the external market and are peripheral to the firm's strategic goals. Employing a resource based view of the firm, we find that the core information technology (IT) employees with firm specific skills are value-adding resources that aid the firm's performance whereas peripheral employees with less firm specific skills provide no value to the firm's performance. Examining the issue deeper, we find that the economic impact of the presence of core IT employees is moderated by the organization's non-IT investment intensity. The findings of the research provide insights that help to expand the understanding of resource complements and the role of strategic human resources in a firm.