We propose the Net-Enabled Business Innovation Cycle (NEBIC) as an applied dynamic capabilities theory for measuring, predicting, and understanding a firm's ability to create customer value through the business use of digital networks. The theory incorporates both a variance and process view of net-enabled business innovation. It identifies four sequenced constructs: Choosing new IT, Matching Economic Opportunities with technology, Executing Business Innovation for Growth, and Assessing Customer Value, along with the processes and events that interrelate them as a cycle. The sequence of these theorized relationships for net-enablement (NE)1 asserts that choosing IT precedes rather than aligns with corporate strategy. The theory offers a logically consistent and falsifiable basis for grounding research programs on metrics of net-enabled business innovation.

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Structured decision techniques have been a mainstay of prescriptive decision theory for decades. Group Support Systems (GSSs) automate many of the features found in decision techniques, yet groups often choose to ignore both the technique and the technology in favor of more familiar decision processes. This research empirically tests propositions and hypotheses for a specific instantiation of Adaptive Structuration Theory. A controlled laboratory experiment tests the ability of three appropriation mediators (e.g., facilitation, GSS configuration, and training) to directively affect group decision making through guidance and restrictiveness. The experiment used a hidden-profile task and structured decision technique which directed group members to reach a decision by identifying the problem, choosing criteria, and selecting a solution. The results supported the proposition that appropriation mediators can increase the faithful use of structured decision techniques and that faithful use can improve decision quality.

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