IT Innovation Capability and Returns on IT Innovation Persistence

2008 | Americas Conference on Information Systems | Citations: 0

Authors: Lim, Jee-Hae; Stratopoulos, Theophanis C

Abstract: Prior studies have shown that the IT innovation capability, a company's ability ... Expand

Abstract: Prior studies have shown that the IT innovation capability, a company's ability to innovate systematically with IT, is not easily replicated (persistent), and the persistence tends to be more pronounced during periods when economy-wide IT budgets are declining (hard IT budgets), such the post-Y2K period. Building on resource based view we argue that companies that systematically innovate with IT have a sustained competitive advantage versus their competitors who are adopting an opportunistic approach to IT innovation or choose not to innovate with IT, and the advantage is stronger during periods of hard IT budgets. Both of these arguments were strongly supported when tested on a sample of 1,057 large US firms by indicating increased return on sales, return on assets, and growth.. Collapse

Topics: digital innovation financial performance organizational productivity competitive advantage IT investment

Methods: regression analysis method descriptive statistic survey statistical hypothesis test experimental group

Theories: resource based view of the firm theory of economic booms