IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation

IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation

Despite evidence of a positive relationship between information technology (IT) investments and firm performance, results still vary across firms and performance measures. We explore two organizational explanations for this variation: differences in firms' IT investment allocations and their IT...

Ausführliche Beschreibung

Bibliographische Detailangaben
Veröffentlicht in:Organization Science. - Institute for Operations Research and the Management Sciences. - 18(2007), 5, Seite 763-780
1. Verfasser: Aral, Sinan (VerfasserIn)
Weitere Verfasser: Weill, Peter
Format: Online-Aufsatz
Sprache:English
Veröffentlicht: 2007
Zugriff auf das übergeordnete Werk:Organization Science
Schlagworte:Business value of information technology Information technology assets Resource-based theory Complementarities IT infrastructure IT capabilities IT practices Firm performance Economics Applied sciences Business
LEADER 01000caa a22002652 4500
001 JST063860473
003 DE-627
005 20240622104043.0
007 cr uuu---uuuuu
008 150325s2007 xx |||||o 00| ||eng c
035 |a (DE-627)JST063860473 
035 |a (JST)25146137 
040 |a DE-627  |b ger  |c DE-627  |e rakwb 
041 |a eng 
100 1 |a Aral, Sinan  |e verfasserin  |4 aut 
245 1 0 |a IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation 
264 1 |c 2007 
336 |a Text  |b txt  |2 rdacontent 
337 |a Computermedien  |b c  |2 rdamedia 
338 |a Online-Ressource  |b cr  |2 rdacarrier 
520 |a Despite evidence of a positive relationship between information technology (IT) investments and firm performance, results still vary across firms and performance measures. We explore two organizational explanations for this variation: differences in firms' IT investment allocations and their IT capabilities. We develop a theoretical model of IT resources, defined as the combination of specific IT assets and organizational IT capabilities. We argue that investments into different IT assets are guided by firms' strategies (e.g., cost leadership or innovation) and deliver value along performance dimensions consistent with their strategic purpose. We hypothesize that firms derive additional value per IT dollar through a mutually reinforcing system of organizational IT capabilities built on complementary practices and competencies. Empirically, we test the impact of IT assets, IT capabilities, and their combination on four dimensions of firm performance: market valuation, profitability, cost, and innovation. Our results-based on data on IT investment allocations and IT capabilities in 147 U.S. firms from 1999 to 2002-demonstrate that IT investment allocations and organizational IT capabilities drive differences in firm performance. Firms' total IT investment is not associated with performance, but investments in specific IT assets explain performance differences along dimensions consistent with their strategic purpose. In addition, a system of organizational IT capabilities strengthens the performance effects of IT assets and broadens their impact beyond their intended purpose. The results help explain variance in returns to IT capital across firms and expand our understanding of alignment between IT and organizations. We illustrate our findings with examples from a case study of 7-Eleven Japan. 
540 |a Copyright 2007 INFORMS 
650 4 |a Business value of information technology 
650 4 |a Information technology assets 
650 4 |a Resource-based theory 
650 4 |a Complementarities 
650 4 |a IT infrastructure 
650 4 |a IT capabilities 
650 4 |a IT practices 
650 4 |a Firm performance 
650 4 |a Economics  |x Economic disciplines  |x Financial economics  |x Finance  |x Financial investments  |x Investment strategies 
650 4 |a Economics  |x Economic disciplines  |x Financial economics  |x Finance  |x Financial investments 
650 4 |a Economics  |x Economic policy  |x Public finance  |x Public investments  |x Infrastructure investments 
650 4 |a Applied sciences  |x Computer science  |x Computer engineering  |x Computer technology  |x Information technology 
650 4 |a Business  |x Business structures 
650 4 |a Economics  |x Microeconomics  |x Economic costs and benefits  |x Economic costs  |x Transaction costs 
650 4 |a Economics  |x Microeconomics  |x Economic costs and benefits  |x Economic costs  |x Capital costs 
650 4 |a Economics  |x Microeconomics  |x Economic costs and benefits  |x Economic costs  |x Cost of sales 
650 4 |a Applied sciences  |x Computer science  |x Computer engineering  |x Computer software  |x Software applications  |x Information storage and retrieval systems 
650 4 |a Business  |x Business operations  |x Commerce  |x Sales  |x Sales transactions 
650 4 |a Economics  |x Economic disciplines  |x Financial economics  |x Finance  |x Financial investments  |x Investment strategies 
650 4 |a Economics  |x Economic disciplines  |x Financial economics  |x Finance  |x Financial investments 
650 4 |a Economics  |x Economic policy  |x Public finance  |x Public investments  |x Infrastructure investments 
650 4 |a Applied sciences  |x Computer science  |x Computer engineering  |x Computer technology  |x Information technology 
650 4 |a Business  |x Business structures 
650 4 |a Economics  |x Microeconomics  |x Economic costs and benefits  |x Economic costs  |x Transaction costs 
650 4 |a Economics  |x Microeconomics  |x Economic costs and benefits  |x Economic costs  |x Capital costs 
650 4 |a Economics  |x Microeconomics  |x Economic costs and benefits  |x Economic costs  |x Cost of sales 
650 4 |a Applied sciences  |x Computer science  |x Computer engineering  |x Computer software  |x Software applications  |x Information storage and retrieval systems 
650 4 |a Business  |x Business operations  |x Commerce  |x Sales  |x Sales transactions 
655 4 |a research-article 
700 1 |a Weill, Peter  |e verfasserin  |4 aut 
773 0 8 |i Enthalten in  |t Organization Science  |d Institute for Operations Research and the Management Sciences  |g 18(2007), 5, Seite 763-780  |w (DE-627)320635775  |w (DE-600)2024496-4  |x 15265455  |7 nnns 
773 1 8 |g volume:18  |g year:2007  |g number:5  |g pages:763-780 
856 4 0 |u https://www.jstor.org/stable/25146137  |3 Volltext 
912 |a GBV_USEFLAG_A 
912 |a SYSFLAG_A 
912 |a GBV_JST 
912 |a GBV_ILN_11 
912 |a GBV_ILN_20 
912 |a GBV_ILN_22 
912 |a GBV_ILN_23 
912 |a GBV_ILN_24 
912 |a GBV_ILN_31 
912 |a GBV_ILN_32 
912 |a GBV_ILN_39 
912 |a GBV_ILN_40 
912 |a GBV_ILN_60 
912 |a GBV_ILN_62 
912 |a GBV_ILN_63 
912 |a GBV_ILN_65 
912 |a GBV_ILN_69 
912 |a GBV_ILN_70 
912 |a GBV_ILN_90 
912 |a GBV_ILN_95 
912 |a GBV_ILN_100 
912 |a GBV_ILN_110 
912 |a GBV_ILN_120 
912 |a GBV_ILN_152 
912 |a GBV_ILN_187 
912 |a GBV_ILN_224 
912 |a GBV_ILN_285 
912 |a GBV_ILN_374 
912 |a GBV_ILN_702 
912 |a GBV_ILN_2001 
912 |a GBV_ILN_2003 
912 |a GBV_ILN_2005 
912 |a GBV_ILN_2006 
912 |a GBV_ILN_2007 
912 |a GBV_ILN_2008 
912 |a GBV_ILN_2009 
912 |a GBV_ILN_2010 
912 |a GBV_ILN_2011 
912 |a GBV_ILN_2014 
912 |a GBV_ILN_2015 
912 |a GBV_ILN_2018 
912 |a GBV_ILN_2020 
912 |a GBV_ILN_2021 
912 |a GBV_ILN_2025 
912 |a GBV_ILN_2026 
912 |a GBV_ILN_2027 
912 |a GBV_ILN_2031 
912 |a GBV_ILN_2034 
912 |a GBV_ILN_2035 
912 |a GBV_ILN_2038 
912 |a GBV_ILN_2044 
912 |a GBV_ILN_2048 
912 |a GBV_ILN_2050 
912 |a GBV_ILN_2055 
912 |a GBV_ILN_2056 
912 |a GBV_ILN_2057 
912 |a GBV_ILN_2059 
912 |a GBV_ILN_2061 
912 |a GBV_ILN_2065 
912 |a GBV_ILN_2068 
912 |a GBV_ILN_2106 
912 |a GBV_ILN_2107 
912 |a GBV_ILN_2108 
912 |a GBV_ILN_2111 
912 |a GBV_ILN_2112 
912 |a GBV_ILN_2113 
912 |a GBV_ILN_2118 
912 |a GBV_ILN_2122 
912 |a GBV_ILN_2129 
912 |a GBV_ILN_2143 
912 |a GBV_ILN_2147 
912 |a GBV_ILN_2148 
912 |a GBV_ILN_2152 
912 |a GBV_ILN_2153 
912 |a GBV_ILN_2190 
912 |a GBV_ILN_2232 
912 |a GBV_ILN_2472 
912 |a GBV_ILN_2507 
912 |a GBV_ILN_2935 
912 |a GBV_ILN_2940 
912 |a GBV_ILN_2949 
912 |a GBV_ILN_2950 
912 |a GBV_ILN_4012 
912 |a GBV_ILN_4035 
912 |a GBV_ILN_4037 
912 |a GBV_ILN_4046 
912 |a GBV_ILN_4112 
912 |a GBV_ILN_4125 
912 |a GBV_ILN_4126 
912 |a GBV_ILN_4242 
912 |a GBV_ILN_4246 
912 |a GBV_ILN_4249 
912 |a GBV_ILN_4251 
912 |a GBV_ILN_4305 
912 |a GBV_ILN_4306 
912 |a GBV_ILN_4307 
912 |a GBV_ILN_4313 
912 |a GBV_ILN_4322 
912 |a GBV_ILN_4323 
912 |a GBV_ILN_4324 
912 |a GBV_ILN_4325 
912 |a GBV_ILN_4326 
912 |a GBV_ILN_4335 
912 |a GBV_ILN_4338 
912 |a GBV_ILN_4346 
912 |a GBV_ILN_4393 
912 |a GBV_ILN_4700 
951 |a AR 
952 |d 18  |j 2007  |e 5  |h 763-780