Effect of IT capability and intangible IT resources on sustainable competitive advantage: Exploring moderating and mediating effect of IT flexibility and core competency

Lahcene Makhloufi,Fateh Belaid,Abderrazak Ahmed Laghouag,Noorulsadiqin Azbiya Yaacob,Alhussain Ali Sahli,Albert W K Tan

doi:10.1080/23311975.2021.1935665

Lahcene Makhloufi, Fateh Belaid + Show 4 more

Open Access

https://doi.org/10.1080/23311975.2021.1935665

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Abstract

The purpose of this research is (1) to examine the integration impact of IT assets (e.g., intangible IT resources, IT capability, and IT flexibility) on core competency, and (2) to explore the medi...

Highlights

Introduction to the problemThe core competency concept was developed by leading experts Hamel and Prahalad (1990) in strategic management
The results showed that all values of variance inflation factors (VIFs) were lower than 3.3, indicating that the research model is free of common method variance (CMV) (Kock, 2015)
This study examined the missing link between intangible Information technology (IT) resources, IT capability, and core competency enabled by IT flexibility toward achieving sustainable competitive advantage (SCA)

Summary

Introduction

Introduction to the problemThe core competency concept was developed by leading experts Hamel and Prahalad (1990) in strategic management. An organization’s capability to advance the business in a volatile environment marked by competition, increased customer needs and pressure, product life cycle period, and regulations require core competency, which enables the firm to identify a framework wherein the core strengths can be determined and strategize (Assensoh-Kodua, 2019; Ravichandran et al, 2005). Core competency is a skill that empowers an organization to deliver unique benefits and services for its customers by enabling the corporation to formulate, improve, upgrade, and deploy those unique resources that play a crucial role in creating sustainable competitive advantage (SCA) (Chen et al, 2017; Hsiao & Hsu, 2018). Beyond significantly contributing to the operational and tactical impacts, IT strategic planning capability is a key driver for enabling an organization to transform strategies, relationships partners, linking customers’ needs with business design, and developing competitive business models (Bharadwaj et al, 2013; Ilmudeen & Bao, 2020)

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