Abstract
AbstractAlthough a large body of research has supported that information technology (IT) is critical to firm success, empirical findings on how it affects firm performance remain inconclusive. The authors argue that knowledge codification, a deliberate learning mechanism, must be developed for a firm to take advantage of its IT resources. Further to what extent the firm can translate knowledge and information into performance outcomes depends on its ability to respond to the market. Drawing on the dynamic capabilities perspective and its extensions, the authors develop a conceptual model to examine the missing links, knowledge codification, and market responsiveness, between information system integration and firm performance. Hypotheses are tested on survey data collected from 140 foreign subsidiaries in China. Results indicate that the performance impact of information system integration must work through knowledge codification and market responsiveness.
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