Abstract
This study explores the effects of organizational information technology (IT) capability in determining organizational performance and sustainable competitive advantage. Building on the resource-based and knowledge-based views of a firm, the study proposes a theoretical framework. In this framework, organizational IT capability is theorized to strengthen organizational performance and sustainable competitive advantage, directly and indirectly, through organizational knowledge management capabilities. Data collected from the middle and senior managers of diverse organizations in an emerging economy have been used to test the relationships in the framework. To estimate the proposed relationships in the conceptual model, we use structural equation modeling through SmartPLS 3.2. The results confirm that organizational IT capability significantly impacts organizational performance and sustainable competitive advantage. Additionally, organizational knowledge management capabilities partially mediate the relationship between IT capability and the outcomes (i.e., organizational performance and sustainable competitive advantage). The study concludes with a discussion of the implications for academicians and managers.
Highlights
The debate among academicians and practitioners on sustainable competitive advantage (SCA) and perceived organizational performance (POP) appears to have reached a crucial point
The study advances the debate on the integration of the resource-based view (RBV) and KBV of a firm by jointly investigating the IT capability (ITC) and knowledge management capabilities (KMC) in order to explain the SCA
Sustainability is a major concern for both academicians and practitioners
Summary
The debate among academicians and practitioners on sustainable competitive advantage (SCA) and perceived organizational performance (POP) appears to have reached a crucial point. While the authors are researching the importance and activity of information technology capabilities (ITC) and knowledge management capabilities (KMC) in forming sustainable business spheres, it is important to highlight the insights of extant literature from the perspective of SCA. While working for competitive advantage, successfully integrating IT into various business processes and taking advantage of IT capabilities in the acquisition of SCA have been significant challenges for organizational IT managers [8] Those organizations who have used their ITCs more efficiently and effectively have succeeded in attaining competitive advantage (CA) in their respective fields [9]. The organizations of emerging countries lack this ability, and cannot compete in the competitive world To overcome these hurdles, organizations can deploy a sustainability model in their business processes in order to better grasp the CA [10]. How does organizational knowledge management capabilities mediate the relationship between organizational ITC (infrastructure and competence) and outcomes (i.e., perceived organizational performance and SCA)?
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