Information technology competencies as antecedents for absorptive capacity and innovation capabilities in a high-tech industry

Abstract

Purpose Previous studies equated information technology (IT) with the notion of effective resources. ITs improved firms’ competitive advantage and innovativeness. Yet, far fewer studies investigated types of IT competencies that corresponded to innovation capabilities, particularly in developing countries. The aim of this paper is to provide an investigation concerning the types of IT competencies and examine their influence on the innovation capabilities across high-tech firms. Design/methodology/approach A survey was randomly distributed to 274 respondents across four main sectors of Malaysian high-tech firms. The main sectors were electric and electronic, aerospace, computers and office machinery and pharmaceuticals. A structural equation model, Amos, was used to analyse data. Findings Three findings were surmised. First, IT competencies driven by IT infrastructure, alignment, management affected high-tech firms’ innovation capabilities. Second, absorptive capacity (AC) partially determined the relationship between IT infrastructure and IT alignment and innovation capabilities. AC also determined the relationship between IT management and innovation capabilities. The significance of IT competencies in the improvement of innovation capabilities was presented as a key predictor in bolstering high-tech manufacturing firms’ competitive advantage. Originality/value Two points on novelty were presented. First, by conceptualising IT competencies from resource-based theory (RBV), a shift in understanding RBV was presented. Second, alternative key predictors concerning how IT competencies could improve aspects of AC and innovation capabilities were presented.