Abstract
ABSTRACTInformation Technology (IT) use has the potential to enhance firms’ capacity to build and sustain competitive advantages. Though a rich literature notes how IT use continues to change the nature, scale, and scope of service delivery, surprisingly few studies have addressed the digital transformation processes through which the introduction of new IT-enabled online services are introduced in firms and industries. To address this issue, we identify and examine the processes through which IT may create or impair business value in service processes. To theorize these processes, we adopt a service-dominant logic perspective that views the customer as a co-creator of firm value and analyze some observed risks, tensions, and socio-technical challenges associated with the introduction of an online banking service system in India. Drawing on the findings, we present implications for IT strategy research and discuss in particular how firms can avoid unexpected value destruction when they increase customer participation in the delivery of online services to create value.
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