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IT-enabled organizational agility and firms’ competitive success

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In the recent times, Organizational agility has gained quite a lot of interest because it is viewed as a major business capability that enables organizations to reply flexibly in today’s fast changing business environment. Nevertheless, it is still cloudy as to why and how certain information technology (IT) investments can help organizational agility and hence result in a firm’s long-term competitive success. This dissertation is designed to clarify the fundamental mechanisms of IT-enabled agility creation as well as influence on a firm’s sustainable competitive advantage. The research tests a group of hypotheses developed from a specific theory-based model. Specifically, the investigation examines how organizations can develop organizational agility by means of their use of different IT resources. For this, drawing upon organizational rent-creation mechanisms and the theory of exploration and exploitation, the concept of organizational IT capability, a capacity to deploy and utilize IT resources, was conceptualized with regards to its strategic focus, i.e., explorative IT capability versus exploitative IT capability. Different kinds of IT resources were also recognized by adopting well-established IT resource categorization techniques in the literature. According to this conceptualization, specific relationships between various forms of IT resources and IT capabilities were suggested. Aside from that, the research took into consideration certain complementary relationships between IT capabilities and operational capabilities inside a company as additive reasons for organizational agility……

How to develop Competitive Advantage?

Contents

1. INTRODUCTION
1.1. Problem Statement
1.2. Research Objectives and Question
1.3. Significance of the Research
1.4. Dissertation Structure
2. LITERATURE REVIEW
2.1. Conceptual Framework Development
2.1.1. Resource-Based View: Locus of Organizational IT Value
2.1.1.1. Organizational IT Resources
2.1.1.2. Organizational IT Capability
2.1.1.3. IT Complementarities
2.1.2. IT-Enabled Dynamic Capability View
2.1.2.1. Intermediate Outcomes of IT Impact
2.1.2.2. IT-Enabled Organizational Agility
2.1.3. IT-Enabled Sustainable Competitive Advantage
2.1.3.1. Sustainable Competitive Advantage
2.1.3.2. IT and Sustainable Competitive Advantage
2.1.4. Environmental Contingency View
2.1.4.1. Environmental Contingency Factors
2.1.4.2. Contingency on Environmental Dynamism
2.1.5. A Conceptual Framework of IT-Enabled Organizational Agility
2.2. Conceptual Extension
2.2.1. Polymorphous Aspects of Organizational Agility
2.2.1.1. Organizational Strategic Movements
2.2.1.2. Entrepreneurial versus Adaptive Agility
2.2.2. Two Distinctive Types of IT Capability
2.2.2.1. Idiosyncratic IT Factor for Organizational Agility
2.2.2.2. Economic Rent Creation Mechanisms
2.2.2.3. Organizational Exploration and Exploitation
2.2.2.4. Explorative versus Exploitative IT Capability
2.2.3. Two Distinctive Types of Operational Capability
2.2.3.1. Idiosyncratic Operational Factor for Organizational Agility
2.2.3.2. Operational Innovation
2.2.3.3. Operational Excellence
2.2.3.4. Operational Excellence versus Operational Innovation Capability
2.2.4. A New Classification Scheme for Various IT Resources
2.2.4.1. Integration of Two Existing Classification Schemes
2.2.4.2. Three Components of IT Resources
2.2.4.3. Externally-Oriented versus Internally-Oriented IT Resources
2.2.5. Environmental Contingency for Organizational Strategic Movements
3. RESEARCH MODEL AND HYPOTHESES
3.1. The Roles of IT Resources in Forming IT Capability
3.1.1. Externally-Oriented IT Resources
3.1.2. Internally-Oriented IT Resources
3.2. Complementary Resources for Organizational Agility
3.2.1. Operational Innovation and Explorative IT Capability
3.2.2. Operational Excellence and Exploitative IT Capability
3.3. Agility and Sustainable Competitive Advantage
3.3.1. Profitability: Financial Performance
3.3.2. Competitive Position: Non-Financial Performance
3.3.3. Barriers to Erosion
3.4. Agility and Environmental Contingency
3.4.1. Firms under Highly-Dynamic Markets
3.4.2. Firms under Moderately-Dynamic Markets
4. RESEARCH METHOD
4.1. Measurement Development
4.1.1. Measurement Development Procedures
4.1.2. Measurement Translation
4.1.3. Measurement Items
4.1.3.1. Sustainable Competitive Advantage
4.1.3.2. Entrepreneurial versus Adaptive Agility
4.1.3.3. Explorative versus Exploitative IT Capability
4.1.3.4. Operational Innovation versus Excellence Capability
4.1.3.5. Externally-Oriented versus Internally-Oriented IT Resources
4.1.3.6. Environmental Dynamism
4.1.3.7. Control Variable: Firm Size
4.2. Research Design
4.2.1. Dealing with Common Method Variance
4.2.2. Sample Selection
4.2.3. Survey Procedure
5. RESULTS AND DATA ANALYSES
5.1. Measurement Model
5.1.1. Measurement Model Development
5.1.1.1. Single-Item Approach
5.1.1.2. Preliminary Data Analysis: Convergent and Discriminant Validity
5.1.1.3. Test of Common Method Variance
5.1.2. Measurement and Structural Properties
5.2. Structural Model Analyses
5.2.1. Model Test with Full Data Set
5.2.1.1. IT Resources and Two Types of IT Capability
5.2.1.2. Complementary Relationships between IT and Operational Capabilities
5.2.1.3. Additional Complementary Effect Test
5.2.1.4. Organizational Agility and Sustainable Competitive Advantage
5.2.2. Sub-Group Analysis for Environmental Contingency
5.2.2.1. Highly-Dynamic Environment Group Analysis
5.2.2.2. Moderately-Dynamic Environment Group Analysis
6. DISCUSSION
6.1. IT Resources and IT Capabilities
6.1.1. The Roles of IT Resources in Two Types of IT Capability
6.1.2. Alternative Relationships between IT Resources and IT Capabilities
6.1.2.1. Post-Hoc Analysis (1)
6.1.2.2. Alternative Explanations for Unexpected Findings
6.2. Creation of Two Types of Organizational Agility
6.2.1. Complementary Relationships between IT and Operational Capabilities
6.2.2. Alternative Complementary Effects
6.2.2.1.1. Post-Hoc Analysis (2)
6.2.2.1.2. Conflicting Interpretations of an Unexpected Finding
6.3. Firm’s Sustainable Competitive Advantage
6.3.1. IT-Enabled Agility and Sustainable Competitive Advantage
6.3.2. Alternative Explanations for Unexpected Findings
7. CONCLUSION
7.1. Summary of Research Findings
7.2. Limitations
7.2.1. Cross-Sectional Research Design
7.2.2. Data Collection within a Country
7.2.3. Conceptual Distinctions in Practices
7.3. Theoretical Contributions
7.3.1. Conceptual Improvement
7.3.2. Disclosure of Underlying Mechanisms of Organizational IT Impact
7.3.3. Contingency View for Organizational IT Value
7.3.4. Construct Operationalization and New Measurement Development………

Source: City University of Hong Kong

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