Abstract
The role of IT-‐enabled innovation in fostering competitive advantage has been well established in the literature. Firms are leveraging their IT infrastructure that supports their modern IT enabled business processes in order to reconfigure their existing operational process in response to industry turbulence. Through IT-‐enabled innovation, or the organizational adoption of a new idea or process, firms can reconfigure their existing operational processes better and faster than their competitors and achieve competitive advantage. This multiple-‐case study of eight small service-‐oriented companies will examine differences between outsourcing-‐dependent firms and self-‐sufficient firms to highlight differences in IT capabilities and how those capabilities produce business value, and its ultimate effect on firm performance. This study will also answer the call for research to examine the impact of dynamic capabilities and improvisation on performance in different levels of environmental turbulence.
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