Dynamic information technology capability: Concept definition and framework development

Mediation effect of knowledge management on the impact of IT capability on firm performance: exploring the moderating role of organization culture management

Introduction

With the development of the digital economy, a multitude of firms have embarked on the path of digital transformation through information technology (IT). Scholars have called for attention to the mediating or moderating mechanisms of IT capability on firm performance. This study argues that further exploration is needed regarding the relationship between IT capability and firm performance.

Methods

This study obtained questionnaire data from 152 IT senior managers of randomly selected manufacturing firms. The data was used to empirically test the proposed hypotheses using hierarchical regression analysis.

Results

The results showed that IT capability has a positive effect on firm performance directly and indirectly via knowledge stock and knowledge process. Moreover, organizational culture management moderates the relationship between knowledge stock/knowledge process, and firm performance.

Discussion

This study proposes the "resources-knowledge-performance" mechanism, which sheds light on the "black box" of how IT capability affects firm performance. This enriches the research on knowledge from different perspectives and the the research on organizational culture by discussing the moderating role of organizational culture management in the relationship between knowledge stock/process and firm performance. Our research also has important managerial implications to firm.

Unfolding sustainable auditing ecosystem formation path through digitalization transformation: How digital intelligence of accountant fosters the digitalization capabilities

This research aims at indulging a consistent image of how Digitalization Capabilities (DC) demonstrates an impact on Sustainable Auditing Ecosystem (SAE) within public sector organizations (PSOs) in developing countries, especial in an emerging market, and gives insights regarding to divergent impacts of the interconnection between DC and SAE moderated by different levels of Accountants' Digital Intelligence (ADI). The state-of-the-art structural equation modelling (SEM) was employed to statistically analyze the survey data collected from self-administered questionnaire distributed to a convenient sample of 323 respondents. Additionally, multi-group analysis (MGA) was implemented to explore the heterogeneity of data and examined substance of the difference in the parameters caused by the moderating variable. The obtained results advocated that it was paramount for PSOs to increase DC for SAE formulation. The MGA findings highlighted a statistically significant difference in the impacts of DC on SAE between various levels of ADI. The insights acquired from final model emerged as a foundation which might buttress policymakers and PSOs' practitioners in initiatives development pertaining to digitalization for SAE formulation.

Exploring the Application of BIM Technology in the Whole Process of Construction Cost Management with Computational Intelligence

The construction industry is a labor-intensive industry in China. In recent years, as people's living standards have risen, so have their requirements for the functionality, appearance, and comfort of buildings. The amount of information attached to construction projects is also increasing, especially for some modern large-scale construction projects. Due to the long construction period and a large amount of information in the construction process, the difficulty of project engineering management has also increased significantly. At the same time, with the gradual development and improvement of China's market economy system, the prices of labor and materials in the construction industry continue to rise, and the huge consumption of energy and resources no longer meets the strategic requirements of sustainable development. Therefore, construction project cost management is facing a huge impact, the actual effect of construction project cost management work is not good, and the phenomenon of uncontrolled construction project investment commonly occurs. The use of BIM software to build a building information model can integrate information from all stages of the project and facilitate the participation and cooperation of all project entities. Cost management is carried out before the actual construction of the project, thus realizing the whole process of cost management and effectively avoiding the occurrence of actual costs exceeding the budget after the project is completed. The study analyses the suitability of applying BIM technology to the whole process of construction project cost management with computational intelligence and explains the value and advantages of BIM in the whole process of construction project cost management. On this basis, this research provides a specific analysis of the application of BIM technology in the process of cost management at various stages of the whole process of construction projects and thus puts forward suggestions that can solve the obstacles that may be encountered in the whole process of cost management of construction projects in China.

The role of enterprise information systems strategies enabled strategy-making on organizational innovativeness: a resource orchestration perspective

Purpose

The paper aims to establish the role of enterprise information systems strategies (ISS) enabled by business strategies for attaining organizational innovativeness (ORIN) mediated by performance (decision-making and business processes) under environmental turbulence.

Design/methodology/approach

The research framework is developed based on theoretical grounding and validated with the help of 408 responses from Brazil using SmartPLS path modeling.

Findings

The results of the research suggest that the resource orchestra of enterprise information systems strategy-enabled strategy-making can be a viable alternative to enhance innovation activities in the organizations through the mediated role of performance (decision-making and business process).

Practical implications

The research demonstrates the role of business function (information systems) strategy enabled overall business strategy-making for achieving innovations in the organization. Fortune organizations are exploiting the information systems strategy enabled business strategy for innovations in the organization; such as Amazon, Walmart, Costco, etc.

Originality/value

The proposed and validated model is a contribution to the enterprise information systems strategy theory. This model presents the role of resource orchestras in achieving innovations in organizations.

THE INFLUENCES OF TECHNOLOGICAL CAPABILITY AND MARKET ORIENTATION TOWARD BUSINESS MODEL INNOVATIONS OF DIGITAL STARTUPS

Previous studies have addressed the importance of business model innovation (BMI) for established firms. However, there are limited studies on BMI in digital startups. Due to their characteristics, established firms differ from startups; thus, the findings of the previous studies cannot be applied straightforwardly to such startups. Because each startup experiences different types of BMI, they presumably possess varying types of technological capability and adopt market orientation differently. The links among technological capability, market orientation, and BMI, nevertheless, are not clearly articulated in the literature. Therefore, it is necessary to conduct further investigations. Using four Indonesia’s digital startups as cases, two research questions are posed: (1) What kinds of technological capability and market orientation are needed for digital startups to conduct their BMI? (2) How can a set of technological capability and market orientation lead to different BMIs experimented by digital startups? The findings reveal that a certain type of BMI demanded startups possess a certain type of technological capability and adopt a peculiar type of market orientation. These refer to ecosystem- and specialisation-focused technological capability, and market orientation toward specialisation and ecosystem. Based on these findings, practical implications are presented at the end of this paper.

Organizational E-Readiness for the Digital Transformation of Primary Healthcare Providers during the COVID-19 Pandemic in Poland

The COVID-19 pandemic has forced many countries to implement a variety of restrictive measures to prevent it from spreading more widely, including the introduction of medical teleconsultations and the use of various tools in the field of inpatient telemedicine care. Digital technologies provide a wide range of treatment options for patients, and at the same time pose a number of organizational challenges for medical entities. Therefore, the question arises of whether organizations are ready to use modern telemedicine tools during the COVID-19 pandemic. The aim of this article is to examine two factors that impact the level of organizational e-readiness for digital transformation in Polish primary healthcare providers (PHC). The first factor comprises operational capabilities, which are the sum of valuable, scarce, unique, and irreplaceable resources and the ability to use them. The second factor comprises technological capabilities, which determine the adoption and usage of innovative technologies. Contrary to the commonly analyzed impacts of technology on operational capabilities, we state the reverse hypothesis. The verification confirms the significant influence of operational capabilities on technological capabilities. The research is conducted using a questionnaire covering organizational e-readiness for digital transformation prepared by the authors. Out of the 32 items examined, four are related to the operational capabilities and four to the technological capabilities. The result of our evaluation shows that: (i) a basic set of four variables can effectively measure the dimensions of OC, namely the degree of agility, level of process integration, quality of resources, and quality of cooperation; (ii) a basic set of three variables can effectively measure the dimensions of TC, namely adoption and usage of technologies, customer interaction, and process automation; (iii) the empirical results show that OC is on a higher level than TC in Polish PHCs; (iv) the assessment of the relationship between OC and TC reveals a significant influence of operational capabilities on technological capabilities with a structural coefficient of 0.697. We recommend increasing the level of technological capability in PHC providers in order to improve the contact between patients and general practitioners (GPs) via telemedicine in lockdown conditions.

Information Technology Ambidexterity, Digital Dynamic Capability, and Knowledge Processes as Enablers of Patient Agility: Empirical Study

BACKGROUND

There is a limited understanding of information technology's (IT) role as an enabler of patient agility and the department's ability to respond to patients' needs and wishes adequately.

OBJECTIVE

This study aims to contribute to the insights of the validity of the hypothesized relationship among IT resources, practices and capabilities, and hospital departments' knowledge processes, and the department's ability to adequately sense and respond to patient needs and wishes (ie, patient agility).

METHODS

This study conveniently sampled data from 107 clinical hospital departments in the Netherlands and used structural equation modeling for model assessment.

RESULTS

IT ambidexterity positively enhanced the development of a digital dynamic capability (β=.69; t4999=13.43; P<.001). Likewise, IT ambidexterity also positively impacted the hospital department's knowledge processes (β=.32; t4999=2.85; P=.005). Both digital dynamic capability (β=.36; t4999=3.95; P<.001) and knowledge processes positively influenced patient agility (β=.33; t4999=3.23; P=.001).

CONCLUSIONS

IT ambidexterity promotes taking advantage of IT resources and experiments to reshape patient services and enhance patient agility.

Knowledge Management Processes and Performance: Key Role of IS Strategies in Knowledge Capture and Utilisation

This research examines the interrelation of knowledge generation (KG) and knowledge sharing (KC) and how they influence IT infrastructure (ITI) and strategic decision support systems (SDSS) to enhance business process performance (BPP) and firm performance (FP). Furthermore, the objective of this study is to emphasise the importance of applying information systems strategies (ISS) such as knowledge capture and utilisation to make better firm processes to boost firm performance in knowledge management process-intensive organisations. The study surveyed 261 Brazilian companies and used partial least squares path modelling to test the hypotheses proposed herein. The research findings showed that KG and KC influence ITI. Additionally, it also showed that ITI has full mediation in its relationship with KG and SDSS and partial mediation in its relationship with KC on the SDSS. Finally, BPP demonstrated full mediation in its relationship with SDSS and FP. The research findings contribute to firms understand how BPP and FP are affected through ISS embedded into knowledge and utilisation coupled with knowledge generation and sharing.

Business value of cognitive analytics technology: a dynamic capabilities perspective

Purpose

Novel and emerging technologies such as cognitive analytics attract a lot of hype among academic researchers and practitioners. However, returns on investments in these technologies are often poor. So, identifying mechanisms through which cognitive analytics can add value to firms is a critical research gap. The purpose of this paper is to theorize how cognitive analytics technologies can enable the dynamic capabilities of sensing, seizing and reconfiguring for an organization.

Design/methodology/approach

This conceptual paper draws on the extant academic literature on cognitive analytics and related technologies, the business value of analytics and artificial intelligence and the dynamic capabilities perspective, to establish the role of cognitive analytics technologies in enabling the sensing, seizing and reconfiguring capabilities of an organization.

Findings

Through arguments grounded in existing conceptual and empirical academic literature, this paper develops propositions and a theoretical framework linking cognitive analytics technologies with organizations’ dynamic capabilities (sensing, seizing and reconfiguring).

Research limitations/implications

This paper has critical implications for both academic research and managerial practice. First, the authors develop a framework using the dynamic capabilities theoretical perspective to establish a novel pathway for the business value of cognitive analytics technology. Second, cognitive analytics is proposed as a novel antecedent of the dynamic organizational capabilities of sensing, seizing and reconfiguring.

Originality/value

To the best of the authors’ knowledge, this is the first paper to theorize how cognitive analytics technologies can enable dynamic organizational capabilities, and thus add business value to an organization.

Effects on corporate performance through ISS-enabled strategy-making on dynamic and improvisational capabilities

Purpose

This study develops the idea that resource orchestration (RO) of ISS-enabled strategy-making (ISS-SM) can influence dynamic and improvisational capabilities in innovation resulting in corporate performance (CP) gains under a hostile environment.

Design/methodology/approach

The structural equation modeling is applied to the data collected from 551 Brazilian firms.

Findings

The results suggest that ISS-SM facilitates dynamic and improvisational capabilities in innovation, consequently promoting CP. The research also showed that, under conditions of high environmental hostility, the impact of improvisational capabilities in innovation on CP is significantly amplified. Finally, in the specific case of high hostility, ISS-SM is especially important in enabling organizational capabilities on CP, for digital mastery firms, large firms in the manufacturing and services sectors.

Practical implications

The findings provide insights on how RO of ISS and resource management action enable strategy-making to leverage innovation and corporate performance during an uncertain environment.

Originality/value

This study developed an original contribution to resource orchestration, information systems strategies, and strategy-making literature through developing a novel construct of ISS-enabled strategy-making to enhance proximate and distal outcomes under a hostile environment.

Towards Sustainable Digital Innovation of SMEs from the Developing Countries in the Context of the Digital Economy and Frugal Environment

This study aims to explore the direct impact of the digital orientation, Internet of Things (IoT) and digital platforms on the sustainable digital innovation in the context of the digital economy and frugal environment. This study also investigated the mediating role of the digital platforms in these relations. The study was based on the quantitative research design and data were collected from the 397 CEOs and managing directors of Small and Medium Enterprises in Pakistan. Correlation and structural equation modeling approaches were applied for the analysis and testing of the hypotheses. Results revealed that the digital orientation, IoT and digital platform are major antecedents of the sustainable digital innovation. Results also show that the digital platforms mediate between both digital orientation-sustainable digital innovation link and IoT-sustainable digital innovation link. The rapid pace of change in the technology has forced the business organizations to think out of box and align their operational mechanism accordingly. The need for the sustainable digital innovation is a major need of the current decade for meeting the increasing demands of the society in a sustainable way. Organizations, especially SMEs, should be able to deal with these challenges and rapid technological transformations through cost effective frugal business models. The frugal innovation is an important element of sustainable digital innovation enables SMEs to reduce resources usage and waste and to enhance sustainable economic activities. In this way, they can develop and gain advantages in this highly competitive digital environment. This is the first study showing the bright harmony of the digital orientation, IoT and digital platforms for achieving the sustainable digital innovation in the rapid evolving digital economy.

Role of information technology in enabling managerial dynamic capabilities

Purpose

The purpose of this conceptual paper is to explicate the role played by information technology (IT) in enabling managerial dynamic capabilities. By doing so, this paper seeks to address a critical theoretical gap regarding IT’s role in enabling dynamic capabilities (DCs). DCs are knowledge-intensive and information-intensive processes and play a crucial role in facilitating strategic renewal of firms operating in volatile, uncertain, complex and ambiguous business environments. Although managers play a central role in the DCs framework, extant research has only focused on the role of IT in enabling firm-level and process-level DCs.

Design/methodology/approach

This conceptual paper uses the literatures on dynamic managerial capabilities, individual-level information system use, social capital, human capital, managerial cognition and technology-enabled learning to build propositions that link managerial IT use with the enablement of dynamic managerial capabilities.

Findings

This paper introduces a new construct called individual IT leveraging capability (IILC) and provides theoretically grounded arguments that link IILC with managerial social capital, managerial cognition and managerial human capital. It also explicates the relationships between managerial social capital, managerial cognition and managerial human capital and the dynamic managerial capabilities of sensing, seizing and reconfiguring.

Research limitations/implications

The establishment of the linkage between IT and dynamic managerial capabilities extends the literature on the business value of IT. This work also adds to the literature on dynamic managerial capabilities by providing a theoretically grounded argument that IT can act as an antecedent of such capabilities.

Originality/value

To the best of the authors’ knowledge, this paper is arguably the first to theorize the role of IT in enabling managerial DC and thus addresses a critical gap in academic research literature.

Validation of the Information-Technology-Enabled Interaction Instrument in Contemporary Chinese Context

Practitioners and researchers have shown great interest in information-technology (IT)-enabled interactions across partnering firms and developed instruments for measuring it. However, those instruments might have been under criticism as they were developed before the widespread adoption of the new IT applications like video conferences, DingTalk and WeChat Moments among Chinese managers for the last five years. The purpose of this study is to validate the instrument of IT-enabled formal and informal interactions for the contemporary Chinese context. First, the study reviews the literature on IT-enabled interfirm interactions and designs an open questionnaire through in-depth interviews. Answers from 85 pairs of suppliers and manufacturers are coded and the preliminary item pool is generated through the qualitative analysis. Next, a small-scale pretest with 120 manufacturing firms is conducted to purify and modify the item pool. Finally, a large-scale analysis with 336 manufacturing firms is conducted to check the reliability and validity of the measurements. The finalized scale yields six items measuring IT-enabled formal interaction and five items measuring IT-enabled informal interaction, among which six are newly derived in this study. The validated instrument reveals satisfactory reliability and validity and can serve as the basic instruments for future research on IT-enabled interactions.