IT Resource and Competitive Advantage: Role of Knowledge Management Capability and Resource Commitment

Abstract

For decades, scholars have discussed the business value of information technology (IT). The need to examine the relationship between IT and organizational competitive advantage calls for further research on additional organizational variables. By applying the contingency theory to the traditional thinking about IT-based competitive advantages, this study investigates the role of knowledge management capability and resource commitment in the relationship between IT and competitive advantage. Data from 168 organizations in China provides empirical evidence that the positive effects of the three types of IT resource positively affect knowledge management capability, which positively influences competitive advantage. In particular, the effects of IT infrastructure and IT human resources on competitive advantage are mediated by knowledge management capability. In addition, this paper identifies the positive moderating effect of resource commitment in the IT -- knowledge management capability relationship. We then discuss the theoretical and practical implications of the results.