Information Technology and Corporate Strategy: A Research Perspective

Abstract

The use of information technology (IT) as a competitive weapon has become a popular cliché; but there is still a marked lack of understanding of the issues that determine the influence of information technology on a particular organization and the processes that will allow a smooth coordination of technology and corporate strategy. This article surveys the major efforts to arrive at a relevant framework and attempts to integrate them in a more comprehensive viewpoint. The focus then turns to the major research issues in understanding the impact of information technology on competitive strategy.

Investment in Intelligent Transport Aid Systems and Final Performance

“…The result of this relationship coincides with some studies that relate information and communication technology investments (ICT) with final results, and with the main objectives searched by the implementation of an ITA system. The obtained results in the empirical analysis will be aligned with other previous pieces of research (Bakos & Treacy 1986;Hitt & Brynjolsson, 1996;Thatcher & Oliver, 2001;Sieber & Valor, 2005). They all show that the implementation of ICT in organizations improve the operational efficiency and the functional effectiveness and increases the capacity of production and therefore the final efficiency and profitability of the organizations.…”

“…The premises cited in points 1, 2, 3 and 4 in the COTEC Report (1988) in one hand, and the ones explained in the points 1, 2, 4, 5, 6 and 7 of the defined objectives coming from De la Rosa and Núñez-Flores (1993) in the other hand, would be congruent with the affirmations coming from Bakos and Treacy (1986) and Hitt and Brynjolsson (1996). Bharadwaj, Bharadwaj, & Konsynski (1999) show in graphic way some intangible values that generate sustainable competitive advantages, coming from ICT investments, as they can be the improvement in the quality of the products or services, the improvement in the service relationship to the customer, the creation of knowledge assets, and lastly the improvement in the co-ordination and potentiating of synergies.…”

“…To decrease the negative impacts in the environment generated by pollution and noise. Bakos and Treacy (1986) and Hitt and Brynjolsson (1996) support that the benefits obtained by implementing ICT in firms were firstly measured by the reduction in operational costs and/or by increases in the production capacity. Today, we consider other kind of benefits, especially those derived from the internal strategy (efficiency, effectiveness, improvements in customer service, a higher quality of products and services, support of the process reengineering and higher degrees of flexibility), those related with the competitive strategy (skills to surpass the competitors) and those in relation with the business strategy (effects on the industry).…”

“…Bakos and Treacy (1986) support that the implementation of ICT in the organizations improves the operational efficiency and the functional effectiveness. Hitt and Brynjolsson (1996) stress how the ICT increases the productive capability and therefore the efficiency in the organizations.…”

Determinants of Electronic Integration in the Insurance Industry: An Empirical Test

“…More specifically, we (a) develop a model of electronic integration -defined as a specific form of vertical quasi-integration achieved through the deployment of proprietary information systems between relevant actors in adjacent stages of the value chain -and (b) derive a set of its determinants based on the transaction cost perspective that has been recently argued to be relevant for settings impacted by IT applications (Bakos and Treacy, 1986; Malone, Yates, and Benjamin, 1987;demons and Row, 1988; Gurbaxani and Whang, 1991). This model is tested using data from …”