scholarly journals INFORMATION TECHNOLOGY CAPABILITIES AND COMPETITIVE ADVANTAGE: A REVIEW

2021 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
UMAR Adeiza Muazu ◽  
SAMBO ABDULMALIK

Purpose: The purpose of this review is to examine the relationship between information technology (IT) capabilities of enterprises and their ability to gain competitive advantage through IT resources, based on underpinning theories and empirical studies. Methodology: The approach to the review was to conduct extensive literature searches in the fields of strategic management and information technology management, as a result of which four supporting models and perspectives, that is, technology acceptance model (TAM), unified theory of acceptance and use of technology (UTAUT), the IT capability theory, and RBV, and seven empirical studies that linked IT capability dimensions of IT infrastructure; IT human resources; and IT knowledge management and competitive advantage were eventually reviewed. Findings: The review provides indications to better understand the relationship between IT capabilities and competitive advantage. The RBV was discovered to be a very popular and useful underpinning theory favored by many scholars in explaining the relationship. Evidence from empirical studies showed a positive and significant relationship between IT capabilities and competitive advantage, which led to conclusions and recommendations. Contributions to theory, practice, and policy: The review was able to highlight the importance of investment and deployment of IT resources such as infrastructure, human resources, and knowledge management to gain a competitive advantage, and established the role of RBV in strategic management research. Recommendations were made on theory, practice, and policy

Author(s):  
Terry Anthony Byrd

The value of information technology (IT) in today’s organizations is constantly debated. Researchers and practitioners have examined organizations to try to discover causal links between competitive advantage and IT. This paper presents and details a model that depicts a possible connection between competitive advantage and IT. Furthermore, this paper attempts to show how one major component of the overall IT resources, the information systems (IS) infrastructure, might yield sustained competitive advantage for an organization. More precisely, IS infrastructure flexibility is examined as an enabler of “core competencies” that have been closely related to sustained competitive advantage in the research literature. The core competencies enabled by IT that are the focus of this study are mass customization and time-to-market. By showing that IS infrastructure flexibility acts as an enabler of these competencies, the relationship to sustained competitive advantage is demonstrated.


Author(s):  
Ben Tran

A number of authors have stressed that competitive advantage through knowledge management is realized through identifying the valuable representation, organization, acquisition, creation, usage, and evolution of knowledge in its many forms that the organization knows or could know now: skills and experience of people, archives, documents, relations with clients, suppliers, and other persons and materials often contained in electronic databases. In so doing, this chapter covers the various types of knowledge, the Learning Organization (LO), and Organizational Learning (OL). This chapter also covers the history and meaning of knowledge (management), LO, and OL in terms of how all three elements are interrelated. Emphasis is placed on the relationship between LO and OL. With that said, the chapter explains why the role of knowledge transfer and human resources management is a top down approach and not a bottom up approach.


Author(s):  
Clyde W. Holsapple ◽  
Jiming Wu

The resource-based view of the firm attributes superior firm performance to organizational resources that are valuable, rare, non-substitutable, and difficult to imitate. Aligned with this view, the authors contend that both information technology (IT) and knowledge management (KM) comprise critical organizational resources that contribute to superior firm performance. The authors also examine the relationship between IT and KM, and develop a new second-order variable – IT-KM competence – with IT capability and KM performance as its formative indicators. Thus, this chapter contributes not only by investigating the determinants of firm performance but also by broadening our understanding of the relationships among IT, KM, and firm performance.


Author(s):  
Terry Anthony Byrd

The value of information technology (IT) in today’s organizations is constantly debated. Researchers and practitioners have examined organizations to try to discover causal links between competitive advantage and IT. This paper presents and details a model that depicts a possible connection between competitive advantage and IT. Furthermore, this paper attempts to show how one major component of the overall IT resources, the IT infrastructure, might yield sustained competitive advantage for an organization. More precisely, IT infrastructure flexibility is examined as an enabler of “core competencies” that have been closely related to sustained competitive advantage in the research literature. The core competencies enabled by IT that are the focus of this study are mass customization and time-to-market. By showing that IT infrastructure flexibility acts as an enabler of these competencies, the relationship to sustained competitive advantage is demonstrated.


2021 ◽  
Vol 15 (2) ◽  
pp. 75-90
Author(s):  
Naief Azyabi

All organizations have been affected by the coronavirus pandemic in different ways. Small and medium-sized enterprises (SMEs) are more vulnerable to changes due to their limited resources. However, the capabilities of information technologies and processes of knowledge management can assist these enterprises to survive and respond appropriately to changes. Thus, this study aims to assess the extent to which information technology capabilities influence the responsiveness of SMEs to challenges that have emerged during the coronavirus crisis. It also investigates the degree to which knowledge management affects such a relationship in the context of Saudi Arabia. The study includes developing a survey as a data collection method. The responses from 136 SMEs were used to make an analysis and, consequently, draw a conclusion. It has been found that IT capabilities positively influence SMEs’ responsiveness to changes brought by coronavirus, through supporting work flexibility and providing a wide range of options in the supply chain, processes, and sales. It further found that knowledge management mediates the relationship between IT capabilities and SMEs’ responsiveness.


2021 ◽  
Vol 4 (2) ◽  
pp. 131-141
Author(s):  
Ridhotama Shanti D. Ottemoesoe ◽  
Lovely Lovely ◽  
Devie Devie

This paper aims to explore the relationship between information technology (IT) capabilities and competitive advantage, with organizational agility as a mediator, in the case of micro, small, and medium enterprises engaged in the fashion industry in Indonesia. Data were collected by distributing questionnaires to 180 small to medium-sized enterprises in Indonesia’s fashion industry that have used e-commerce platforms to conduct their business activities. The data were analyzed using partial least squares structural equation modeling (PLS-SEM) in SmartPLS 3.0 software. The study suggests that IT capabilities significantly influence organizational agility and competitive advantage. Therefore, the study can serve as a basis for the Indonesian government to promote digitalization and the use of e-commerce among micro, small, and medium enterprise owners in order to face changes in the market and remain competitive. It can also be beneficial for business owners and managers that aim to increase awareness of the importance of technology in their business operations. The work of this paper deepens the understanding of the relationship between IT capabilities, organizational agility, and competitive advantage, which are becoming increasingly important in the current digitalized and ever-changing business environment. It enriches the literature about micro, small and medium enterprise that is related to their IT capabilities level, how they use it to handle changes and factors that contributes in obtaining competitive advantage.


2010 ◽  
pp. 1706-1720
Author(s):  
Clyde W. Holsapple ◽  
Jiming Wu

The resource-based view of the firm attributes superior firm performance to organizational resources that are valuable, rare, non-substitutable, and difficult to imitate. Aligned with this view, the authors contend that both information technology (IT) and knowledge management (KM) comprise critical organizational resources that contribute to superior firm performance. The authors also examine the relationship between IT and KM, and develop a new second-order variable – IT-KM competence – with IT capability and KM performance as its formative indicators. Thus, this chapter contributes not only by investigating the determinants of firm performance but also by broadening our understanding of the relationships among IT, KM, and firm performance.


2011 ◽  
pp. 1099-1112
Author(s):  
Clyde W. Holsapple ◽  
Jiming Wu

The resource-based view of the firm attributes superior firm performance to organizational resources that are valuable, rare, non-substitutable, and difficult to imitate. Aligned with this view, the authors contend that both information technology (IT) and knowledge management (KM) comprise critical organizational resources that contribute to superior firm performance. The authors also examine the relationship between IT and KM, and develop a new second-order variable – IT-KM competence – with IT capability and KM performance as its formative indicators. Thus, this chapter contributes not only by investigating the determinants of firm performance but also by broadening our understanding of the relationships among IT, KM, and firm performance.


2020 ◽  
Vol 21 (2) ◽  
pp. 208-234
Author(s):  
Uli Wildan Nuryanto ◽  
Masyhudzulhak Djamil MZ ◽  
Achmad Hidayat Sutawidjaya ◽  
Ahmad Badawi Saluy

In current dynamic business environment, the competition is getting stiffer and performance organizational becomes issue, the caracteristics that occurred in the industrial revolution 4.0. This condition requires organizations to increase the performance to be sustain. Competence and knowledge management as internal resources that reffer to RBV are strengths hat are very important as predictors in improving performance. For this reason, the study has explored the indicators of each of the predictors and also test the relationships between latent variable that have been hypothesized. This research focus to the industrial chemical manufactur at Banten Province Indonesia which is become the province with the third largest number of chemical firms in Indonesia. Regarding to the central bureau statistics of Indonesia, the values of productivity and human resources capability from downstream chemical manufactur sector below the target. This research using SEM-PLS method to measure 97 respondents from the level supervisor and manajerial. The final results provide a positive and significant relationship between competence and knowledge management through competitive advantage and organizatioan performance. Competitive advantage also increasse the relationship between competence and knowledge management through the organizational performance. This result has implication for managerial levels to increase human resources performance so it can improve the firm competitive advantage. 


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