Resource Structuring or Capability Building? An Empirical Study of the Business Value of Information Technology

Stakeholder pressure and innovation capacity of SMEs in the COVID-19 pandemic: Mediating and multigroup analysis

During environmental crises, it has always been particularly interesting to investigate how companies, specifically small- and mid-sized enterprises (SMEs), find solutions to survive and learn how to act in adverse situations. We conducted our study during the current coronavirus pandemic to analyse how stakeholder pressure affects both the innovation capabilities of SMEs and their firm performance. On the one hand, we examine whether the market and financial performance are better in the presence of less stakeholder pressure. On the other hand, we analyse whether SMEs implement internal mechanisms that enhance their innovation capacity to solve external problems caused by greater stakeholder pressure, which in turn affects firm performance. Our main findings show that during the pandemic, stakeholder pressure is related to the innovative capacity of SMEs; therefore, the higher the pressure, the more important the innovative response of SMEs. However, with higher pressure, the company's performance would be directly reduced in the short term, as the conditions set would be more unfavourable. Innovation capacity also plays a mediating role in preventing poor business performance because of increased stakeholder pressure. Owing to the importance of the chief executive officer (CEO) in SMEs, we test, through multigroup analysis, the differences based on the CEO's educational level. For example, commitment to innovation in SMEs may be more important for managers with higher education. Finally, our findings show how managers can learn to face new challenges in unfavourable environments.

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.

Pull and Push Factors of Data Analytics Adoption and Its Mediating Role on Operational Performance

Despite the influx of data analytics (DA) practices among firms, their impact on operational performance remains ambiguous. This study examined the pull and push factors affecting the data analytics adoption (DAA) from the theoretical perspectives of the technology–organization–environment (TOE) model, theory of perceived risk (TPR), and resource-based view (RBV). The study analyzed data from 169 firms on the basis of the positivist paradigm and employed the partial least square to run the reflective–formative two-stage analysis. Accordingly, the results indicated that the three TOE model aspects exhibited a positive direct impact on DAA and indirectly impacted operational performance through DAA. However, the perceived risk did not display a similar effect in both situations. This study further revealed that the environment push factor had more explanatory power than the perceived risk pull factor, suggesting that a conducive TOE environment would motivate DAA, subsequently enhancing operational performance. The study provided valuable empirical evidence on the determinants of DAA and its subsequent effect on firms’ operational performance. Uniquely, the study also contributed to the literature from the perspective of higher-order-construct analysis in examining the determinants of DAA and its effect on operational performance. Furthermore, the mediation analysis covered the interaction of indirect-path coefficients, minimizing errors in interpreting the mediation effect.

The Effect of Production Structure Roundaboutness on the Innovation Capability of High-Tech Enterprises—The Mediating Role of Technology Absorption Path

From the perspective of production structure sustainability, this study investigates the source of innovation power of high-tech enterprises. It proposes that the roundaboutness of production structure is the sustainable driving force for improving innovation capability in high-tech enterprises, and enterprises can improve their innovation capability by absorbing technology from three paths. The proposed model was tested based on the survey data from 315 enterprises in 10 robotics industrial parks in the Yangtze River Delta region of China. The results show that the roundaboutness of production structure has a positive influence on the innovation capability of high-tech enterprises, which is mediated by technology absorption paths (i.e., independent development in high-tech enterprises, technology acquisition in high-tech enterprises and government policy compliance in high-tech enterprises). Meanwhile, the enterprise has different technology absorption path at different position in production structure. The findings have important enlightenment for enterprises to improve market competitiveness, production efficiency and technological innovation capability, and provides a practical basis for better ways of leveraging market and capital and more effective government processes in industrial innovation.

Organizational Behavior in Green Supply Chain Integration: Nexus Between Information Technology Capability, Green Innovation, and Organizational Performance

Stakeholder pressure and public awareness of environmental protection drive organizations to improve environmental practices in the supply chain (SC), such as green supply chain integration (GSCI) and green innovation (GI). The use of information technology (IT) is crucial to manufacturing organizations' GSCI and performance. However, the research on the relationship between IT capabilities, GSCI, GI and organizational performance is still limited. Therefore, empirical research is needed on the cognitive thinking of employees using IT capabilities to improve GSCI and organizational performance. The data for this study comes from SC personnel in manufacturing organizations through a structured questionnaires and was analyzed by employing structural equation modeling. Based on the results, this paper concludes that organizational IT capabilities positively affect the GSCI and improve organizational performance (environmental and operational performance). Furthermore, the study discovered that GI increases organizational performance and acts as a positive mediator in the link between GSCI and performance. The findings contribute to existing GSCI and GI knowledge, which can provide a bird's eye-view to develop an organization's IT capabilities to achieve competitive performance goals.

Juggling Information Technology (IT) Exploration and Exploitation: A Proportional Balance View of IT Ambidexterity

Firms in the digital age often do not know whether they should focus on exploiting their existing information technology (IT) resources or focus on exploring novel IT resources. They are often told to maintain a perfect balance between IT exploitation and IT exploration. In this study, we show that firms do not need to have the same levels of IT exploitation and exploration simultaneously to improve organizational agility. IT ambidexterity can be achieved by proportional balance between IT exploitation and exploration without forcing the perfect balance between the two. With finite resources, the maximal agility is not associated the perfect balance between IT exploitation and exploration; instead, it is associated with the proportional balance between IT exploitation and exploration, and the optimal proportional balance could vary based on the firm’s total resources allocated for IT ambidexterity. Our findings on proportional balance between IT exploitation and exploration could profoundly influence how firms make IT investment decisions. Rather than pursuing a perfect balance between IT exploitation and IT exploration, firms should consider both their organizational characteristics and environmental conditions to identify optimal levels of proportional balance between the two.

Managing digital knowledge for ensuring business efficiency and continuity

Purpose

Today many firms are pushed towards digitalization to ensure business continuity and their survival due to COVID-19. Therefore, this study aims to investigate the emerging knowledge management models in the era of digitalization and disruption.

Design/methodology/approach

The authors have adopted a semi-structured approach composed of qualitative data collection from 37 business executives from India representing different industry sectors. The authors adopted a three-layer coding process (axial, open and selective) to develop a framework grounded in organizational information processing theory.

Findings

Scanning the business environment leads to understand the status of current and potential business through intelligence of information, whereas better planning and execution can be achieved through employing and using the information intelligently that fits to the overall and strategic objective of the business. Overall, the business continuity can be obtained by information prosperity across the business by engaging diverse stakeholders. According to the findings, these aspects lead to the effective implementation of digital knowledge to ensure business continuity in uncertain business environment.

Practical implications

The study offers the insights for managing and executing the knowledge in digital platforms, where they can think of developing a system architecture on the basis of degree of uncertainty and information processing requirements for combining the knowledge.

Originality/value

The present study is unique, where it offers the meaningful visions to the designers and users of virtual knowledge management systems.

IT Governance mechanism and IT-enabled dynamic capabilities drives firm performance: An empirical study in Sri Lanka

Despite the growing amount of IT investment, IT governance decisions have ever more become complicated due to vague cost relationships, uncertain payoffs, rapid technological changes, and uncertain business environments. This study examines how IT governance mechanism and IT-enabled dynamic capabilities (ITDC) impact on firm performance in the turbulent environment. Drawing on the resource-based theory and dynamic capability theory this study conceptualizes that IT governance mechanism positively effect ITDC, that in turn positively impact on business process agility and firm innovative capability to achieve firm performance. Further, the moderating effect of turbulent environment is hypothesized between ITDC - business process agility and ITDC - firm innovative capability relationship. The finding from 188 senior IT and business manager's responses from Sri Lanka reveals the strong and positive relationship in the hypothesized relationship. In contrary to the expectation, the turbulent environment's both hypotheses (H6a and H6b) failed to show a significant moderating effect. This study proposes the theoretical and practical implications by empirically testing the proposed model in the Sri Lankan context. This study adds to the existing literature and extends the managerial practice by focusing on the key constructs such as IT governance mechanism, ITDC, Turbulent environment, and firm performance

Positioning big data analytics capabilities towards financial service agility

Purpose

Enterprises are increasingly taking actionable steps to transform existing business models through digital technologies for service transformation such as big data analytics (BDA). BDA capabilities offer financial institutions to source financial data, analyse data, insight and store such data and information on collaborative platforms for a quick decision-making process. Accordingly, this study identifies how BDA capabilities can be deployed to provide significant improvement for financial services agility.

Design/methodology/approach

The study relied on survey data from 485 banking professionals' perspectives with BDA usage, IT capability development and financial service agility. The PLS-SEM technique was used to evaluate the underlying relationship and the applicability of the research framework proposed.

Findings

Based on the empirical test from this study, distinctive BDA usage grounded on the concept of IT capability viewpoint proof that financial service agility could be enhanced provided enterprises develop technical capabilities alongside other relevant resources.

Practical implications

The study further highlights the need for financial service managers to identify BDA technologies such as data mining, query and reporting, data visualisation, predictive modelling, streaming analytics, video analytics and voice analytics to focus on financial knowledge gathering and market observation. Financial managers can also deploy BDA tools to develop a strategic road map for data management, data transferability and knowledge discovery for customised financial products.

Originality/value

This study is a useful contribution to the burgeoning discussion with emerging technologies such as BDA implication to improving enterprises operations.

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.

Impacts of big data analytics management capabilities and supply chain integration on global sourcing: a survey on firm performance

Purpose

This study aims to show that management with big data analytics capability can achieve more advantages of the global sourcing process. Furthermore, this study using its conceptual attitude model aims to show that big data analytics management capability leads to an increase in firm performance by the mediating role of integration.

Design/methodology/approach

Using an online questionnaire, 158 managers from 13 Iranian companies taking advantage of the global sourcing process were surveyed. The validity of the hypotheses was evaluated using partial least squares based on structural equation modeling (PLS method).

Findings

The results of the study showed that big data analytics management capability has a positive impact on global sourcing and firm performance directly, and by the mediating role of integration.

Originality/value

Previous studies have carefully addressed the role of big data and big data analytics in firms. However, this is among a few studies addressing the role of big data analytics capability, especially management capability, in improving firms’ performance. The results of this study shed light on the fact that how global sourcing takes the best advantage of big data analytics management capability for better accomplishment of organizations’ duties. The results of this study also disclose how big data analytics management capability helps organizations with their performance and bring benefits to their units.

The impact of business analytics capability on data-driven culture and exploration: achieving a competitive advantage

Purpose

In today's business setting, the business analytic capability, data-driven culture and product development features are highly pronounced in light of the firm's competitive advantage. Though widespread attention has been given to the above concepts, there hasn't been much research done on how it could support achieving competitive advantage.

Design/methodology/approach

This research strongly lies on the theoretical background and empirically tests the hypothesized relationships. The primary survey of 272 responses was analysed by using the partial least squares structural equation modelling (PLS-SEM).

Findings

The findings of this study show a significant relationship for the constructs in the research model except for the third hypothesis. Accordingly, the firm's data-driven culture does not have a significant impact on new product newness.

Originality/value

This study empirically tests the business analytics capability, data-driven culture, and new product development features in the context of a firm's competitive advantage. The findings of this study contribute to the theoretical, practical and managerial aspects of this field.

Consequential factors of Big Data's Analytics Capability: how firms use data in the competitive scenario

Purpose

The article's objective is to analyze the consequent factors of Big Data Analytics Capability for firms in the competitive scenario, using different analytical models.

Design/methodology/approach

The research had a quantitative approach, using a survey of data from firms located in the state of São Paulo – Brazil. Structural Equation Modeling (SEM) was used to validate the model.

Findings

The results reveal that all hypotheses were accepted. Business value was the construct that had the most explanatory power in the model. It is necessary to invest more in analytical tools, as well as people trained in the analysis of these models, in addition to a change of mindset, which will dictate the bias of the firm's strategic decision-making. The Big Data analysis is evident from firms' growing investments, particularly those that operate in complex and fast-paced environments.

Practical implications

The proposed theoretical model makes it possible to verify firms' analytical structure and whether they are better positioned to analyze customer data and information in real-time, generate insights and implement solutions to maintain and improve their market position.

Originality/value

The contribution of this article is to present a proposal to expand the research models in the literature that analyzed the direct and indirect relationship between “Big Data Analytics Capability” and “Product Innovation Performance”.

Information technology (IT) governance and IT capability to realize firm performance: enabling role of agility and innovative capability

Purpose

With the ever-growing turbulent business setting, there is a great interest to study how a firm tailors information technology (IT) capability to shape agility and innovation capability to stay ahead of the competition. This study examines how IT governance and IT capability can be tailored to achieve firm performance through agility and innovative capability in a turbulent environment.

Design/methodology/approach

Drawing on the dynamic capability theory, this study based on the primary survey data of 253 responses from senior IT and business executives in China proves the hypothesized relationship in the proposed model.

Findings

This study shows that the IT governance mechanism positively impacts on IT-enabled dynamic capabilities. Further, IT-enabled dynamic capabilities positively impact on agility and innovative capability that in turn support to achieve firm performance. The environmental uncertainty is only significant in the IT-enabled dynamic capabilities–business process agility relationship.

Research limitations/implications

This study suggests corporate leaders and executives to better exploit their resources and tailor IT capabilities in the turbulent environment. Further, this study offers theoretical and practical implications.

Originality/value

This study proposes ways for executives to examine the multifaceted nature of environmental uncertainty to achieve agility, innovation and firm performance rather than simply investing in IT.

Prescriptive analytics in public-sector decision-making: A framework and insights from charging infrastructure planning

In this work, we investigate the challenges public-sector organizations face when seeking to leverage prescriptive analytics and provide insights into the public value such data-driven tools and methods can provide. Using the strategic triangle of value, legitimacy, and operational capacity as a starting point, we derive a framework to assess public-sector prescriptive analytics initiatives, along with six guiding questions that structure the assessment process. We present a case study applying prescriptive analytics to the placement of charge points in urban areas, a critical challenge many municipalities are currently facing in the transition towards electric mobility. Reflecting on the analytics application as well as its development and implementation process through the guiding questions, we derive key lessons for public-sector organizations seeking to apply prescriptive analytics.

Responsible Artificial Intelligence (AI) for Value Formation and Market Performance in Healthcare: the Mediating Role of Patient's Cognitive Engagement

The Healthcare sector has been at the forefront of the adoption of artificial intelligence (AI) technologies. Owing to the nature of the services and the vulnerability of a large section of end-users, the topic of responsible AI has become the subject of widespread study and discussion. We conduct a mixed-method study to identify the constituents of responsible AI in the healthcare sector and investigate its role in value formation and market performance. The study context is India, where AI technologies are in the developing phase. The results from 12 in-depth interviews enrich the more nuanced understanding of how different facets of responsible AI guide healthcare firms in evidence-based medicine and improved patient centered care. PLS-SEM analysis of 290 survey responses validates the theoretical framework and establishes responsible AI as a third-order factor. The 174 dyadic data findings also confirm the mediation mechanism of the patient's cognitive engagement with responsible AI-solutions and perceived value, which leads to market performance.

Strategic issues of big data analytics applications for managing health-care sector: a systematic literature review and future research agenda

Purpose

The proposed article is aimed at exploring the opportunities, challenges and possible outcomes of incorporating big data analytics (BDA) into health-care sector. The purpose of this study is to find the research gaps in the literature and to investigate the scope of incorporating new strategies in the health-care sector for increasing the efficiency of the system.

Design/methodology/approach

Fora state-of-the-art literature review, a systematic literature review has been carried out to find out research gaps in the field of healthcare using big data (BD) applications. A detailed research methodology including material collection, descriptive analysis and categorization is utilized to carry out the literature review.

Findings

BD analysis is rapidly being adopted in health-care sector for utilizing precious information available in terms of BD. However, it puts forth certain challenges that need to be focused upon. The article identifies and explains the challenges thoroughly.

Research limitations/implications

The proposed study will provide useful guidance to the health-care sector professionals for managing health-care system. It will help academicians and physicians for evaluating, improving and benchmarking the health-care strategies through BDA in the health-care sector. One of the limitations of the study is that it is based on literature review and more in-depth studies may be carried out for the generalization of results.

Originality/value

There are certain effective tools available in the market today that are currently being used by both small and large businesses and corporations. One of them is BD, which may be very useful for health-care sector. A comprehensive literature review is carried out for research papers published between 1974 and 2021.

Information technology management and service performance management capabilities: an empirical study of the service supply chain management process

Purpose

The dynamic capabilities view is invoked to hypothesize relationships among the service supply chain management (SSCM) process capabilities using the information technology management (ITM) process capability. This study argues that ITM will have an impact on the service performance management (SPM) process capability only when it works through mediators and demonstrates the impact by using the framework of SSCM process capabilities.

Design/methodology/approach

This study is based on a survey using quantitative data collection to empirically test the research framework. The proposed framework and hypotheses were tested using a mail-in survey of the service industry in Thailand. The statistical analysis of data acquired from the survey was performed using structural equation modeling.

Findings

The results support the existence of a mediating role for the ITM process affecting the SPM process. This study identifies the role of ITM and emphasizes the urgent need for firms to embed other mediating factors into their approaches to achieve SPM process goals in the service supply chain context.

Research limitations/implications

The study offers important implications to researchers as well as practitioners by highlighting the significance of mediating roles for ITM to achieve SPM process.

Originality/value

This research is among the initial attempts to argue the impact of ITM on SPM through mediators.

Systematic Literature Review of E-Learning Capabilities to Enhance Organizational Learning

E-learning systems are receiving ever increasing attention in academia, business and public administration. Major crises, like the pandemic, highlight the tremendous importance of the appropriate development of e-learning systems and its adoption and processes in organizations. Managers and employees who need efficient forms of training and learning flow within organizations do not have to gather in one place at the same time or to travel far away to attend courses. Contemporary affordances of e-learning systems allow users to perform different jobs or tasks for training courses according to their own scheduling, as well as to collaborate and share knowledge and experiences that result in rich learning flows within organizations. The purpose of this article is to provide a systematic review of empirical studies at the intersection of e-learning and organizational learning in order to summarize the current findings and guide future research. Forty-seven peer-reviewed articles were collected from a systematic literature search and analyzed based on a categorization of their main elements. This survey identifies five major directions of the research on the confluence of e-learning and organizational learning during the last decade. Future research should leverage big data produced from the platforms and investigate how the incorporation of advanced learning technologies (e.g., learning analytics, personalized learning) can help increase organizational value.

Development of a Pragmatic IT Concept for a Construction Company

The paper focuses on developing a comprehensive and pragmatic IT strategy for low-margin construction activities, which forms part of the realignment of the general business strategy and on refocusing the operational model. The main elements of the IT strategy formation are analysis of the current IT environment in terms of software and hardware, carrying out a gap analysis, and developing individual functional digitalization strategies in construction execution based on BIM (Building Information Modeling), business administration processes, communication, business intelligence (BI) and reporting, and data security. Further, a large emphasis is given to the sustainable strategy implementation in terms of hardware and software readjustments, their integration, user trainings, and defining the way forward. Research methodology and initial, chosen results of an extended questionnaire and construction company staff interviews are presented.

IT-based product innovation strategies for small firms

Purpose

This study connects the theoretical concepts of strategic orientation and information technology (IT)-based product innovation strategy to suggest that several key factors can help small firms to develop IT-based product innovation strategies.

Design/methodology/approach

With data from 245 useable questionnaires (response rate 25.18%) from UK-based small firms in the high-tech industry, the research model was tested and validated.

Findings

Findings show that information technology support for core competencies mediates the relationship between strategic orientation and IT-enabled product innovation (ITEPI). Specifically, by distinguishing the different types of strategic orientation and information technology support for core competencies, the study finds that IT support for market access competency (ITMA) mediates the market orientation–ITEPI relationship, while IT support for functionality-related competency (ITFR) mediates the technology orientation–ITEPI relationship. Academic implications arising from the findings are discussed and managerial propositions provided.

Originality/value

This study offers a fresh theoretical angle from which to understand the factors that contribute to ITEPI. More specifically, we argue that strategic orientation reflects managers' focus to pursue certain activities, and that ITEPI serves as organizational activity. Further, this study also extends relevant research in the field of strategy, IT and innovation. It provides a more nuanced picture of how strategic orientation affects ITEPI.

Investigating the Impact of Big Data Analytics on Perceived Sales Performance: The Mediating Role of Customer Relationship Management Capabilities

A persistent question for information technology researchers and practitioners is how big data analytics (BDA) can improve sales performance. Therefore, this study proposed a research model to investigate the impact of BDA on perceived sales performance in accordance with the resource-based view (RBV) and dynamic capability theory. The 416 valid responses collected from the employees of pharmaceutical organizations were analyzed using structural equation modelling to test the proposed research model. Results indicated that the BDA and customer relationship management (CRM) capabilities shared a strong positive impact on perceived sales performance. BDA, as organizational resources, creates organizational dynamic capabilities, such as CRM capabilities. BDA and CRM capabilities can influence perceived sales performance. Furthermore, CRM capabilities have a significant mediating impact on the relationships between BDA and perceived sales performance. This study also highlighted the practical and theoretical implications of the proposed model, the research limitations, and the future research directions.

IT strategy and business strategy mediate the effect of managing IT on firm performance: empirical analysis

Purpose

The multifaceted effect of IT in organizations has been widely examined. However, the intervening role of IT strategy and business strategy on the effect of managing IT on firm performance remains less strong. This study examines how managing information technology (MIT) effects on firm performance by looking at the mediating role of IT strategy and business strategy.

Design/methodology/approach

Drawing on the resource-based view of IT and contingency perspective, theoretical insights for managing IT and the mediating effect of IT strategy and business strategy on firm performance are established. The model is empirically tested by using hierarchical regression and structural equation modeling for the data collected through the survey of 194 senior IT and business managers in China.

Findings

The significant and impactful relationship found in the model for the proposed idea. The results show that both IT strategy and business strategy partially mediate the effect of managing IT on firm performance.

Research limitations/implications

The findings highlight that managing IT does not merely influence better firm performance; instead, the coherent amalgamation of IT strategy and business strategy can enrich firm performance. The theoretical and practical implications are also discussed.

Originality/value

In line with the call for rigorous research to integrate the managing IT and firm strategies, this study demonstrates the mediating role of business strategy and IT strategy between the managing IT and the firm performance relationship, hence contributing to the IS research literature.

Impact of IT practices and business value of IT measurement

Purpose

The purpose of this paper is to measure the business value of IT (BVIT) and illustrate the relationship between IT practices and BVIT.

Design/methodology/approach

The paper uses a case study approach to collect the subject firm data over a period of one year. The data are about various IT systems used in the firm and their associated capital and operational cost components. The derived data are then compared with industry benchmarks.

Findings

The IT practices employed by the firm enable it to achieve a BVIT which is higher than the industry norm, from both strategic and operational perspectives.

Research limitations/implications

In this study, a year’s worth of data from a single firm is considered. The temporal frame of the research data limits the generalization of the results. To improve the generalizability, data from many years and across many firms may be used.

Practical implications

The paper provides insights to managers to identify the measures of BVIT. Further, managers can make necessary interventions based on IT practices to derive IT capabilities which, in turn, impact the firm’s performance.

Originality/value

The contribution of the work is manifold: illustration of the relationship between IT practices and BVIT; illustration of a methodology to evaluate firm-level BVIT; and an approach to collect IT expenses – both capital and operational level.

Conceptualization, Operationalization, and Validation of the Digital Data Stream Readiness Index

This article describes how in their search for value creation, companies are investing considerable resources in so-called “Big Data” initiatives. A peculiar aspect of these initiatives is the increasing availability of real-time streams of data. Successfully leveraging these streams to extract value is emerging as a critical competence for the modern firm. Despite the significant attention received, scholarly research on Digital Data Stream (DDS) remains insufficient. More importantly, there are no specialized definitions and measurement instruments that can move the field forward by initiating a cumulative research tradition. This article can provide clarification on key definitions, differentiating DDS from Big Data. Drawing on the organizational readiness concept, the DDS readiness index develops as a measure of organizational readiness to exploit real-time digital data. This article will conceptualize, define, operationalize and validate the index. By identifying the four dimensions of mindset, skillset, dataset and toolset as the elements of the DDS readiness index and discussing its managerial and research implications