Abstract

AbstractThe strategic use of information technology (IT) is critical in linking the use of IT to organizational benefits. The objective of this article is to provide a succinct overview of the research investigating the strategic use of IT in organizations. To do so, this article defines the concept of strategic use of IT and summarizes the three main theoretical perspectives from which strategic IT use has been investigated. First, the traditional microeconomic perspective, which analyzes the strategic use of IT according to five industry forces and the value chain activities of a given firm. Second, the resource‐based view of the firm, which emphasizes that the use of IT can only lead to competitive advantage when complemented with other critical resources to create rare, valuable, and inimitable resources. Third, the dynamic capability perspective, grounded in Schumpeterian economics, which highlights that the strategic use of IT should serve to enhance the capability of a firm to reconfigure its competencies to rapidly respond to changing business conditions. The article ends with a brief discussion on future avenues for research.

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