Innovation and Information Technology Capability as Antecedents of Firms' Success

Abstract

The primary aim of this article is to identify antecedents of firm's success in specific circumstances of the New economy. Many researchers have tried to answer the question "Why do some firms persistently outperform others?". One of the most dominant view on this issue is a resource based view (RBV) or resource-based theory (RBT). According to this theory, sources of competitive advantage begin with the notion that differences in performance are fundamentally due to the distinctive resources and capabilities that are valuable, rare, inimitable and non-substitutable. Information technology as a resource of the company has the increasing importance for the researches and managers. Research on the information technology (IT) value within organizations and firms' IT capabilities have expanded over the past decade. IT capability is defined as the existence of IT infrastructure, IT knowledge and IT operations within company. The purpose of this paper is to analyse the interaction impact of IT capability and firms' innovation on business performance. The study uses survey data from managers and structural equation modelling to assess the relationships between IT capability, firm's innovation and business performance. This study finds that both IT capability and innovation capability play important role in achieving greater business performance. The findings indicate that managers should focus on development of the IT function within company, taking into account importance of IT investment as well as IT knowledge, and promotion of innovativeness. KEY WORDS

The influence of big data analytic capabilities building and education on business model innovation

“…The mediating role of technological orientation Limbu et al (2014) have stated that an organization's big data capabilities cannot guarantee improved performance because technological orientation may also be required. Supporting this assertion, research has found that technology systems alone are not sufficient for increasing innovation because technological skills, processes and infrastructure are also needed (Turulja and Bajgorić, 2016). This shows that big data analytics capabilities alone cannot be expected to increase business model innovation and technological orientation is also required.…”

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

“…IT integration was measured by two smaller items, IT-business alignment (six items) and IT management and measurement (seven items) (Chen et al , 2015; Kamdjoug and Tewamba, 2017; Rai and Tang, 2010; Sofia and Ferreira, 2017). Innovation capabilities were measured across six items (Palacios-Marqués et al , 2015; Turulja and Bajgoric, 2016). ABC was classified under four functions, namely, acquisition, assimilation, transformation and exploitation.…”

Multidimensional Perspective of Firms’ IT Capability Between Digital Business Strategy and Firms’ Efficiency: A Case of Chinese SMEs

“…It has been opined by the research of Nadeem et al (2018) that DBS enables the companies to enhance their capabilities specifically, leading to digital transformation, yet the capabilities affecting them are vague. The research of Turulja and Bajgorić (2016) further stated that the digital strategies improving the capabilities of IT enable the firms to boost their value in the market. Therefore, it has led to the formation of the following hypothesis:…”