The Formation and Value of IT-Enabled Resources: Antecedents and Consequences of Synergistic Relationships

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Abstract

This paper informs the literature on the business value of information technology by conceptualizing a path from IT assets—that is, commodity-like or off-the-shelf information technologies—to sustainable competitive advantage. This path suggests that IT assets can play a strategic role when they are combined with organizational resources to create IT-enabled resources. To the extent that relationships between IT assets and organizational resources are synergistic, the ensuing IT-enabled resources are capable of positively affecting firms’ sustainable competitive advantage via their
improved strategic potential. This is an important contribution since IT-related organizational benefits have been hard to demonstrate despite attempts to study them through a variety of methods and theoretical lenses. This paper synthesizes systems theory and the resource-based view of the firm to build a unified conceptual model linking IT assets with firm-level benefits. Several propositions are derived from the model and their implications for IS research and practice are discussed.

Additional Details

Author Saggi Nevo and Michael R. Wade
Year 2010
Volume 34
Issue 1
Keywords Business value of IT, systems theory, resource-based view of the firm, IT-enabled resources, emergent capabilities, synergy, strategic potential, compatibility, integration effort
Page Numbers 163-183