Effect Of Information Technology Capability Research Articles

How do small-to-medium-sized e-commerce businesses stay competitive? Evidence on the critical roles of IT capability, innovation and multihoming

PurposeSmall-to-medium-sized enterprises (SMEs) in e-commerce often invest in information technology (IT) to stay competitive. However, whether and how IT capability (ITC) translates into financial performance requires further research. This paper examines the role of ITC in enabling value proposition innovation (VPI) as an important mechanism that improves financial performance for Chinese e-commerce SMEs during the COVID-19 pandemic. We argue that ITC is critical for enabling innovation because it elevates SMEs’ understanding of changing customer needs, especially when SMEs operate on multiple e-commerce platforms (multihome).Design/methodology/approachWe used partial least squares structural equation modeling (PLS-SEM) and tested the hypotheses that ITC mediated by VPI and moderated by multihoming increases the financial performance of e-commerce SMEs through a survey among 206 Chinese SMEs operating on Taobao.FindingsWe find that not only higher levels of ITC lead to better financial performance, but also that the effect is fully mediated by VPI. Moreover, the effect of ITC on innovation is enhanced when vendors operate on multiple platforms.Originality/valueThe study identifies VPI as an important mechanism through which SMEs can leverage their ITC to adapt, innovate and thrive in competition. Our work suggests that using technology to develop innovative ideas and identify opportunities (which are reflected in VPI) is key to success and that doing so is more likely when vendors multihome. Thus, this study contributes to the innovation literature by explicating a concrete link between ITC, multihoming, VPI and increased financial performance. Different e-commerce stakeholders, including SME owners, IT and service providers and e-commerce platforms, can benefit from the findings of this work.

Bridging versus buffering: how IT capabilities and dependence advantage shape responses to supply chain disruptions?

PurposeDrawing upon resource dependence theory, this study aims to examine how a firm’s information technology (IT) capabilities (i.e. IT integration and IT reconfiguration) influence its responses to disruptions – bridging with a current supplier and buffering with an alternative supplier. We further examine how such relationships are moderated by the firm–supplier relative dependence (i.e. firm dependence advantage and supplier dependence advantage).Design/methodology/approachBased on data from 141 match-paired surveys of firms in China, we test our model.FindingsOur study finds that IT integration positively influences bridging and IT reconfiguration positively influences buffering. Furthermore, our findings indicate that the positive impact of IT integration on bridging is negatively influenced by the firm’s dependence (FD) advantage but positively moderated by the supplier’s dependence advantage. By contrast, the positive impact of IT reconfiguration on buffering is negatively influenced by the FD advantage.Originality/valueOur study provides a more nuanced insight into the effects of IT capabilities on disruption responses and a better understanding of the buyer–supplier dependence boundary conditions under which these effects vary.

The impact of IT capability on the performance of SMEs in Ghana: the mediating role of business process agility

ABSTRACT Information technology (IT) is widely regarded as a competitive tool, particularly under conditions of a turbulent business environment. While IT capability can arguably enable firms to achieve superior performance, there is a limited understanding of the mechanisms and boundary conditions through which IT capability enhances firm performance. We developed and tested a model with the assumption that the relationship between IT capability and firm performance is channeled through business process agility (BPA), and conditional on the level of investment in Research & Development (R&D). The proposed relationships are tested on a sample of 400 SMEs in Ghana, a developing African market economy. This paper finds that BPA partially mediates the effect of IT capability on firm performance. The paper further finds that R&D investment strengthens the indirect effects of IT capability on firm performance, via BPA – both at high and low levels of R&D investment. The theoretical and managerial implications are discussed.

Information Technology Capabilities and Innovation Capacities Increasing with Competitive Advantage

This study aims to examine the effect of information technology capability and innovation capability on culinary UMKM competitive advantage with strategy as an intervening variable. This research was conducted in the city of Semarang. The sampling technique used purposive sampling method. The research data is primary data collected by distributing questionnaires to UMKM owners in the culinary field in Semarang City with a sample of 96 respondents. Hypothesis testing is done using the Path Analysis method. Based on statistical tests, the results show that information technology capability has a significant effect on strategy, innovation capability has a significant effect on strategy, information technology capability has a significant effect on competitive advantage. Innovation capability has a significant effect on competitive advantage, and Strategy has a significant effect on competitive advantage. Micro, small and medium businesses in the culinary field It is suggested to be able to continue to increase the use of information technology in order support business activities and improve the ability to create innovation in product without losing the original product.

Information technology capability, open technological innovation and firm growth.

The aim of this paper is to investigate the effects of information technology (IT) capability on firm growth in the context of open technological innovation. The paper utilized a logical deductive approach to develop hypotheses and analytical frameworks, and collected empirical data from 256 Chinese new ventures. Regression analysis and structural equation models were used to test the hypotheses and analyze the data. The results showed that IT capability, including flexibility and integration of information technology, significantly influenced firm growth, and open technological innovation partially mediated the relationship between IT flexibility and firm growth, and significantly mediated the relationship between IT integration and firm growth. The paper's limitations include the cross-sectional design, limited sample size, and potential unobserved variables such as organizational learning that could affect the relationship between IT capability and firm growth. The research is the first to investigate the effects of IT capability on firm growth based on the mediation of open technological innovation in China, contributing to the literature on IT capability and providing insights for managerial practice in the sharing economy era.

Delving the impact of adaptability and government support in small‐and medium‐sized enterprises business resilience: The mediating role of information technology capability

AbstractThe main aim of this study is two‐fold. First, we examine the combined effect of small‐and medium‐sized enterprises' (SMEs) adaptability, government support and information technology capability in business resilience. Second, we study the mediating effect of information technology capability on the proposed direct relationships. A total of 211 SMEs participated in this survey voluntarily. The proposed model and hypotheses were tested using variance‐based structural equation modelling. The findings disclosed that SMEs’ adaptability and information technology capability are positively related to business resilience. In terms of government support, it is not significantly related to SMEs’ business resilience, while a mediation result is uncovered between government support and business resilience. Additionally, the results revealed that information technology capability mediates the relationship between adaptability and business resilience. Based on the theoretical implications of the existing literature on the SMEs’ business resilience, this study also provides several useful managerial implications for business resilience enhancement.

Government policy, IT capabilities, digital transformation, and innovativeness in Post-Covid context: case of Vietnamese SMEs

PurposeCOVID-19 has made businesses increasingly dependent on technology to be competitive and efficient. Small and medium enterprises (SME) digitalisation and innovation research are widespread. SME digital transformation and innovation require government policies, initiatives and assistance. How the government can help SMEs achieve these goals is unclear. So, this paper aims to investigate how government policy may assist Vietnamese SMEs to boost innovation performance and digital transformation.Design/methodology/approachThe study will take a quantitative approach, with questionnaires distributed to 659 respondents from SMEs in Vietnam through snowball and convenience sampling procedures. The structural equational modelling method is used for data analysis.FindingsThe study indicated that government policies supported Vietnamese SMEs’ innovation and information technology (IT) capabilities. Government policy assistance also boosted IT capabilities and innovation. Furthermore, mediation effects show that digital transformation fully mediates the relationship between innovativeness and firm performance, whereas IT capabilities partially mediate this relationship.Research limitations/implicationsFurther research that replicates the findings and analyses contextual heterogeneities between nations is advised because Vietnam’s pandemic setting was both similar and dissimilar.Practical implicationsThe study demonstrated government-company interactions through supportive policy. It investigated whether SMEs seeking digital transformation and innovativeness might gain competitive benefits by implementing effective knowledge management and enhancing their IT capabilities.Originality/valueA resource-based theoretical framework is extended to study how innovation, public policy and digital transformation for SMEs interact. The study confirms government policy strongly influences enterprises’ digital development. Specifically, the new mediating effects of IT capabilities and digital transformation are explored and provide new insights into the existing literature.

The Influence Of Strategic Management Accounting And Information Technology Capability On Company Performance With Sustainable Competitive Advantage As The Mediator

This study analyzes the influence of strategic management accounting and information technology capability on company performance and examines sustainable competitive advantage that can mediate the effect of strategic management accounting and information technology capability on company performance. The population of this study was companies from raw materials, industry, primary and non-primary consumer goods, and health sectors in Indonesia. Meanwhile, the research respondents were the employees of these companies. To collect the respondents’ responses, we employed the survey method. The employees’ responses from the same company were averagely calculated to be one value; therefore, one value stands for one company. This study employed 203 relevant companies so that it employed a structural equation model based on covariance. The hypothesis examination has revealed that strategic management accounting has a positive effect on sustainable competitive advantage. Sustainable competitive advantage has a positive effect on company performance. In contrast, strategic management accounting and information technology capability do not affect company performance. Information technology capability has no effect on sustainable competitive advantage. Sustainable competitive advantage can mediate the influence of strategic management accounting on company performance. Sustainable competitive advantage cannot mediate the effect of information technology capability on company performance.Finally, the application of strategic management accounting enables companies to achieve sustainable competitive advantage and ultimately improve company performance.

A meta-analysis on the effects of IT capability toward agility and performance: New directions for information systems research.

Information technology (IT) capability is an organizational capability that enables organizations to acquire, deploy, combine, and reconfigure IT resources. As such, it is often investigated in conjunction with organizational agility—an organization’s ability to sense and respond to changes—and organizational performance. Studies on IT capability distinguish between reactive and proactive IT capability and identify varying effects in relation to agility and performance. While reactive IT capability supports and enhances work processes, proactive IT capability supports and enhances business strategies. In the light of the mixed results of prior research, we conduct a meta-analytical investigation into the varying effects that reactive and proactive IT capability have on organizational agility and organizational performance. We identified 6.436 studies from multiple sources that we systematically reduced to include 72 empirical studies in our analysis. Contrary to previous results and widely held opinion, our meta-analysis neither finds support for differences in effect size between reactive (r+ = 0.39, k = 34, 95% Confidence Interval (CI) [0.34, 0.44]) and proactive IT capability (r+ = 0.38, k = 21, 95% CI [0.31, 0.45]) toward agility (z = 0.68, p = 0.25), nor from reactive IT capability (r+ = 0.31, k = 43, 95% CI [0.26, 0.37]) and proactive IT capability (r+ = 0.33, k = 25, 95% CI [0.27, 0.40]) toward performance (z = 1.11, p = 0.13). Given the importance of IT capability, we discuss possible explanations and propose four areas for future research: latency, sequence, configurational, and theoretical multiplicity of IT capability.

The strategic role of firm agility in the relationship between IT capability and firm performance under the COVID-19 outbreak

PurposeLeveraging theory from the dynamic capability literature, this study aims to explore how information technology (IT) capability influences firm agility and subsequently translates into firm performance.Design/methodology/approachThis study examines the proposed relationships by using survey data from a sample of 296 Chinese retail firms. Structural equation modeling is used to test this study’s hypotheses.FindingsThe following results are produced: the direct effect of IT capability on firm agility is confirmed; firm agility has a direct impact on firm performance; and the indirect effect of IT capability on firm performance via firm agility is demonstrated (i.e. partial mediation).Originality/valueThe catastrophic outbreak of the COVID-19 pandemic has heightened the importance of firm agility more than ever. Although the traumatic event is painful, however, there is nothing like a crisis to offer a tremendous business opportunity. In response to the pandemic circumstance, firms are required to operate their business by reacting to unpredictable and dynamic market changes quickly and efficiently. This study sheds light on why firms should develop their IT capability and how it affects firm performance via firm agility during the COVID-19 outbreak.

THE EFFECT OF INFORMATION TECHNOLOGY CAPABILITY, AND STRATEGIC PLANNING ON KNOWLEDGE MANAGEMENT MEDITED ORGANIZATIONAL PERFORMANCE IN THE ARMY CENTRAL IMPLEMENTING AGENCY

The purpose of this study is to provide input to the leadership of the Indonesian Army National Armed Forces Headquarters regarding the importance of knowledge management on technological developments because this knowledge is one way to create and improve work professionalism in the military, especially the Indonesian Armed Forces.The research design and method used in this research is hypothesis testing. This research is a quantitative non-experimental, using a questionnaire given to 93 respondents. This research was conducted at the Central Implementing Agency for the Indonesian National Armed Forces.The results of this study indicate that: The effect of Information Technology Capability, Strategic Planning on Organizational Performance is positive and significant. The influence of Knowledge Management on Organizational Performance is positive and significant. The influence of Knowledge Management mediating Information Technology Capability, Strategic Planning on Organizational Performance is positive and significant. It means that the higher/positive mediation of Knowledge Management on Information Technology Capability, Strategic Planning, the higher/positive Organizational Performance.Theoretical implications: Knowledge Management as a mediating of Information Technology Capability, Strategic Planning is able to improve Organizational Performance, by increasing Knowledge Management through increasing its dimensions it will be able to improve the Organizational Performance of the Central Implementing Body of the Indonesian Armed Forces.

How information technology capability and knowledge integration capability interact to affect business model design:A polynomial regression with response surface analysis

This study examines how information technology (IT) capability and knowledge integration (KI) capability individually and jointly influence efficiency-centered business model design (EBMD) and novelty-centered business model design (NBMD), drawing on organizational learning and capability complementarity perspectives. Based upon a survey data of 205 Chinese firms, our empirical results indicate that both IT capability and KI capability are positively related to EBMD and NBMD. Besides, we demonstrate the existence of complementary effect (i.e., positive synergy) as well as balance and imbalance effect between IT capability and KI capability on EBMD and NBMD using a polynomial regression with response surface analysis. Specifically, we find that when IT capability and KI capability are balanced at higher levels, the degree of EBMD and NBMD will be higher, and when their imbalance increases in either direction, the degree of EBMD will be lower. We also have an unexpected finding that the degree of NBMD will be higher when the firm has high IT capability with low KI capability than vice versa. Our study provides a comprehensive understanding of the individual and joint effect of IT capability and KI capability on business model design.

The effects of information technology capability and knowledge base on digital innovation: the moderating role of institutional environments

PurposeBased on the knowledge-based view, this study investigates how firms' information technology (IT) capability broadens and deepens their knowledge base, which consequently improves digital innovation. By further drawing on the institutional theory perspective, this study examines how the relationships between IT capability and knowledge base are moderated by the institutional environments in which the firm operates.Design/methodology/approachThis paper uses 170 samples of Chinese firms and an empirical test conducted by the authors following a hierarchical moderated regression analysis.FindingsThe results find that IT capability positively affects knowledge breadth and knowledge depth, which consequently improves digital innovation. Furthermore, the study reveals the negative moderating effects of enforcement inefficiency on IT capability–knowledge breadth relationship, and the negative moderating effects of government support on IT capability–knowledge depth relationship.Originality/valueThis research is one of the earliest attempts to explore the impact of the institutional environment of emerging economies on IT capability. It also clarifies the impact of knowledge breadth and knowledge depth on digital innovation.

Analysis the Effect of Information Technology Capability, Business Innovation, Digital Disruption and Digital Disruption Reactions on Sustainable Banking Performance

Analysis the Effect of Information Technology Capability, Business Innovation, Digital Disruption and Digital Disruption Reactions on Sustainable Banking Performance

Empirical Analysis of Effect of Information Technology Capability on Performance of Private Universities in Kenya

Empirical Analysis of Effect of Information Technology Capability on Performance of Private Universities in Kenya

How does IT capability affect open innovation performance? The mediating effect of absorptive capacity

PurposeOpen innovation and information systems have been key topics in the theoretical domain, but little empirical research thoroughly examines how information technology (IT) capability affects open innovation performance. Thus, the purpose of this paper is to explore the relationship between IT capability and open innovation performance and to expose the inner mechanism at the firm level.Design/methodology/approachThis paper collected firm-level data in China; 232 usable questionnaires from different firms were collected. Then, the study used a structural equation model by AMOS for hypothesis testing.FindingsThe results indicate that both internal IT capability and external IT capability have positive impacts on open innovation performance; potential absorptive capacity and realized absorptive capacity mediate the relationship between external IT capability and open innovation performance. Additionally, realized absorptive capacity plays a mediating role in the relationship between internal IT capability and open innovation performance.Practical implicationsThese findings indicate that practitioners should pay attention to the important relationship between absorptive capacity and IT capability and open innovation performance in Chinese businesses.Originality/valueExisting research has emphasized the influence of IT on open innovation, but empirical studies have not thoroughly focused on the inner mechanisms of the effect of IT capability on open innovation performance. Drawing on firm capability theory, this paper classifies IT capability as internal and external IT capability and absorptive capacity as potential and realized absorptive capacity. Then, this paper confirms the mediating role of absorptive capacity between IT capability and open innovation performance.

Sustaining Innovation Performance in SMEs: Exploring the Roles of Strategic Entrepreneurship and IT Capabilities

Recent research questions our understanding of the processes at play regarding information technology (IT) capabilities’ contribution to innovation performance, particularly under environmental uncertainty. Strategic entrepreneurship (SE) or the interface of entrepreneurship and strategic management, which aims to answer the very question of how firms create value or wealth and sustain success in increasingly competitive and dynamic environments, is deemed the appropriate catalyst to further explore this link. Thus, this study attempts to examine the driving effects of IT capabilities on product innovation performance (PIP) by exploring the mediating role of SE. Data were collected from 164 small- and medium-sized enterprises (SME) information communication technology (ICT) firms in Canada. Partial least squares (PLS) regression tested the hypotheses derived from the research model, and data exploration and analysis including visual analytics were performed in R. Results confirm that IT capabilities drive PIP and thereby create firm level value. Secondly, SE had a direct impact on PIP, and SE partially mediates IT capabilities effect on PIP. To date, SE research has mostly been conceptual in nature making this study one of the few to empirically capture the phenomena and highlight its link to sustainable innovation performance.

Focusing on Corporate IT Capability and Alliance Performance: An Empirical Analysis Based on Corporate Alliances in China

This paper studied the relationship between corporate information technology (IT) capability and alliance performance based on a sample of Chinese corporate alliances. With regression analysis, this paper found IT capability has significantly positive effect on alliance performance and knowledge acquisition plays a role as a mediator, while regional industrial factor plays a role as a moderator. That means the positive effect of IT capability on alliance performance is stronger in cross-region alliances than same-region alliances and is stronger in high-dynamic industry than low-dynamic industry. The foundings can provide some valuable suggestions for executives and related policy-makers, especially in emerging markets.

The impacts of IT capability and marketing capability on supply chain integration: a resource-based perspective

Although previous research has addressed the interface and logical association among marketing, information technology (IT) and supply chain management, there have been few, if any, attempts to investigate how IT capability and marketing capability influence supply chain integration (SCI). Thus, this study investigates the direct and interacting effects of IT capability and marketing capability on SCI. The hypothesised relationships were tested using survey data gathered from 329 firms in China’s manufacturing industry. The results reveal that both IT capability and marketing capability have a significant positive effect on SCI. Interestingly, no significant interaction effect was found, indicating that marketing IT capability and marketing capability influence SCI independently, and not synergistically. However, while IT capability and marketing capability do not interact, IT capability does mediate the impact of marketing capability on SCI.

Impact of information technology capability on financial performance during the period of economic downturn: the case of Chinese listed companies

Several earlier studies validate the positive impact of information technology (IT) capability on firm performance during economic expansion in developed countries. Given sustained IT investments and rapid adoption of various IT in developing countries (e.g. China) in the 2000s, there is a need for new research to test whether prior findings still hold true with up-to-date data from a period of economic downturn in developing countries. Thus, this study attempted to reexamine the linkage between IT capability and financial performance during recent financial crisis in 2008, especially in China context. Our results show that during the period of financial crisis, Chinese firms with superior IT capability tend to outperform a sample of control firms on average profit ratios but not on cost ratios, even after adjusting for prior performance. We also find that the profit performance effects of IT capability can be sustained over a long period of economic downturn. This study contributes to research by extending a different context (i.e. China) from developed countries with new data from economic downturn and providing new finding to reconcile prior research.