Information technology impacts on innovation

Abstract

In this paper, we propose a model of Information Technology (IT) impacts on innovation. We do not intend to generalize a specific model of innovation. Rather, the objective here is to explain how IT can facilitate innovation in a work group. Review of literature suggests that innovative ability of a work group is dependent on the capabilities of the individuals/group, the structure of the work group or organization, and the group/organizational environments. To explore this conceptual model, data were collected from 136 users who used well‐established information systems. The data supported that IT enhanced innovation significantly by augmenting individual/group capabilities through: 1) motivation support, 2) resource support, and 3) information support. Motivation support was shown to be the most important contributor of innovation. Group interaction variables, standardization, decentralization, and specialization, were shown to be positively related to innovation. However, the effect of group interaction was secondary in nature; the independent contributions to innovation of group interaction variables, controlling for other factors, were not significant. In addition, the data provided support that innovation was positively related to demand pull via motivation and resource support, and to technology push via information support.

A multiple‐theory analysis of a diffusion of information technology case

“…The empirical data also showed that the impact of demand pull on innovation was significant, while the impact of technology push was not. (Lee & Treacy, 1988;p. 270) To a certain degree, the problem with technology-push may be definitional.…”

“…From a practical standpoint, the notions of technology-push and technology transfer seem to be restricted to the influence of communication and information (cf. Lee & Treacy, 1988).…”

“…We also considered many of the large number of other models. For example, two models (Rogers, 1983; Lee & Treacy, 1988) were too closely aligned with the old linear push‐pull model that has been widely characterized as irrelevant for practical situations such as the one we were studying (cf. Kline, 1985; Van de Ven et al , 1989).…”

Organizing innovation: Integrating knowledge systems

“…In their article Lee and Treacy (1988) have shown that an unstable environment generates increased potential for innovation. But it requires an organization intent on being up-dated and well-informed about changes in the environment.…”

Value of digital information networks: a holonic framework

“…A more advanced stream of literature, more in line with evolutionary economics, attempts to depict the value of particular subcomponents of IT [6,27,102,144]. For example, [144] used a multi-theoretic lens to argue that IT investments and capabilities influenced firm performance through three significant organizational capabilities (agility, digital-options and entrepreneurial-alert) and strategic processes (capabilitybuilding, entrepreneurial action and co-evolutionary adaptation).…”