Inter-Organizational IT Capability in China

Abstract

Prior studies of information technology (IT) capability mostly focused on dimensions and effects of IT capability at intra-organizational level in western context. This paper extends intra-organizational IT capability to inter-organizational IT capability, specifically examining process-oriented inter-organizational IT capability from a process-oriented perspective in an emerging market context. The authors use survey data from Chinese firms to identify dimensions of inter-organizational IT capability and validate its scale, compare the differences of inter-organizational IT capability in firms with three types of ownership structure, and test the relationship between these inter-organizational IT capability dimensions and firm performance. A comparative analysis reveals that seven inter-organizational IT capability measures identified in Chinese context are extended or more important than in the Western context. Empirical results show that inter-organizational IT capability varies between state-owned enterprises and non-state-owned enterprises. It is also found that four dimensions of inter-organizational IT capability have different impacts on firm performance.