Building channel power: the role of IT resources and information management capability

Abstract

PurposeThe purpose of this study is to develop a better understanding of how information technology (IT) resources influence a firm’s channel power development. Specifically, this study hypothesizes that two types of IT resources (i.e. IT infrastructure resources and IT human resources) are key antecedents to channel power and that information management capability is a key mediator between IT resources and channel power.Design/methodology/approachThe hypotheses are tested using survey data gathered from a sample of Chinese companies. The analyses are performed using partial least squares technique.FindingsThe results suggest that both of the two IT resources play key roles in enhancing a firm’s channel power, but they do so in different ways. Specifically, while IT human resources can enhance a firm’s channel power by strengthening both information acquisition and dissemination capabilities, IT infrastructure resources can influence channel power only by enhancing a firm’s information acquisition capability.Research limitations/implicationsThe measurement of IT resources might potentially be influenced by subjective divergence. In addition, information management contains many sub-processes, and this study only examines two of them: information acquisition and information dissemination.Practical implicationsThe findings suggest that managers should develop/improve both IT infrastructure and human resources to enhance channel power by building stronger information management capability. More importantly, the findings reveal that IT human resource can provide more benefits as it strengthens both information acquisition and dissemination capabilities.Originality/valueThis study extends the existing literature by investigating how a firm’s IT resources affect its channel power. The results of this study provide insightful guidance for managers and researchers in how to better manage IT resources to improve channel governance performance.