IT Business Value and Competitive Advantage: Integrating a Customer-Based View

Gellweiler, Christof; Krishnamurthi, Lakshman

doi:10.1080/10580530.2021.2003487

Cited by 7 publications

(9 citation statements)

References 95 publications

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“…Consequently, to maximise the benefits of using social media, it is imperative to combine multiple ways of using this technological resource to improve firm performance (Trainor et al, 2014). From a customer-centric perspective, ensuring that customers are active and fully engaged in the interaction is vital for success (Gellweiler and Krishnamurthi, 2022;Zubac et al, 2010). This has been evident in mixed findings on the effect of customer orientation on firm performance (Feng et al, 2019;Frambach et al, 2016) and the fact that customers do not value all relationships (Danaher et al, 2008).…”

Section: The Moderating Role Of Customer Co-creationmentioning

confidence: 99%

Social media use and performance of small businesses: a customer-centric perspective

Radebe,

Verkijika,

Neneh

2023

BJM

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PurposeSocial media is widely regarded as a strategic resource to improve firm performance. However, there are mixed findings on how businesses can use social media for better performance. This study aims to propose and test a mechanism through which social media can influence firm performance.Design/methodology/approachA survey approach was used to collect data from 262 small businesses in South Africa. The data were analysed using structural equation modelling (SEM) to assess the hypothesised relationships.FindingsThe findings support the significant role of social media in fostering firm performance. It is observed that the use of social media influences firm performance through three key customer-centric constructs: the strength of customer–firm relationships, customer orientation and customer co-creation. Additionally, the relationship between the strength of customer–firm relationships and firm performance is moderated by customer co-creation.Originality/valueThe study provides new insights into the mechanism through which social media fosters firm performance. Due to a lack of universality in establishing the direct effect of social media use on firm performance, providing evidence of an indirect path becomes vital for advancing knowledge on social media use in business. As such, this study contributes to the literature on social media and entrepreneurship by demonstrating a novel mechanism through which social media influences firm performance.

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Section: The Moderating Role Of Customer Co-creationmentioning

confidence: 99%

Social media use and performance of small businesses: a customer-centric perspective

Radebe,

Verkijika,

Neneh

2023

BJM

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“…Performance, therefore, relates to an understanding of how an organization is able to conduct its operations such that it leads to success (Chatterjee et al, 2021;Mithas et al, 2011). It has long been accepted in the literature that digital services combined with other organizational resources have a positive impact on company performance (e.g., Bharadwaj, 2000;Chuang & Lin, 2015;Powell & Dent-Micallef, 1997;Seufert et al, 2021;Wade & Hulland, 2004), but there is no consensus as to which performance indicators best describe that performance (Gellweiler & Krishnamurthi, 2021). Although the focus of research has long been on financial performance (Gellweiler & Krishnamurthi, 2021;Kohli & Grover, 2008;Ong & Chen, 2014), it is generally accepted that the performance of digital services cannot be measured from financial perspectives alone (Priambodo et al, 2021).…”

Section: Digital Service Performancementioning

confidence: 99%

“…It has long been accepted in the literature that digital services combined with other organizational resources have a positive impact on company performance (e.g., Bharadwaj, 2000;Chuang & Lin, 2015;Powell & Dent-Micallef, 1997;Seufert et al, 2021;Wade & Hulland, 2004), but there is no consensus as to which performance indicators best describe that performance (Gellweiler & Krishnamurthi, 2021). Although the focus of research has long been on financial performance (Gellweiler & Krishnamurthi, 2021;Kohli & Grover, 2008;Ong & Chen, 2014), it is generally accepted that the performance of digital services cannot be measured from financial perspectives alone (Priambodo et al, 2021). This is because the impacts of digital services have often been found to appear as determinants of financial performance (Ågerfalk et al, 2020), such as operational efficiency (e.g., Chatterjee et al, 2021).…”

Section: Digital Service Performancementioning

confidence: 99%

The View of IT-Consuming Firms on the Key Digital Service Capabilities of IT-Producing Firms

Sore

Saunila

Ukko

2022

IJIKM

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Aim/Purpose: This study focuses on the connection between IT-producing firms’ digital service capabilities and the digital service performance of IT-consuming firms, especially online shop operators. Background: The acquisition and integration of knowledge regarding digital service capabilities and performance can increase the level at which employees assimilate information, organize with IT-consuming firms, and cooperate with them to develop the delivery of services and customize services to fill their needs. Exploring capabilities that may enable this process is a prerequisite for all businesses offering digital services and, thus, an engrossing and ongoing interest of practitioners and scholars. However, there is a lack of research on the relationship between IT-producing firms’ digital service capabilities and the digital service performance of IT-consuming firms in the business-to-business (B2B) context. Methodology: The study builds on a survey conducted among small firms that have an online shop in use and are located in Finland. Contribution: The study offers empirical evidence for the capabilities valued by IT-consuming firms, providing a model for IT-producing firms to use when deciding on a future focus. The study was executed in a B2B setting from the viewpoint of online shop operators, presenting a novel understanding of influential digital service capabilities. Findings: Adaptability, determined by capabilities related to utilizing information gained via the integration of a digital product into other digital tools (e.g., marketing, personalization, and analytics), statistically significantly affects all three aspects of an IT-consuming firm’s digital service performance (financial, operational, and sales). Another product capability, availability, which includes aspects such as security, different aspects of functioning, and mobile adaptation, affects one aspect of digital performance, namely operational. The results also suggest that the role of service process-related capabilities in determining service comprehensiveness significantly influences two aspects of IT-consuming firms’ digital service performance: financial (negative effect) and operational (positive effect). The results show that the capabilities associated with the relationship between the producing firm and the consuming firm do not affect IT-consuming firms’ performance to the same extent. Recommendations for Practitioners: The study results suggest that IT-producing firms should concentrate on leveraging service comprehensiveness, as there has been a shift in the B2B context from merely selling a digital product and associated services. It seems that usability-related issues are now taken for granted, and the emphasis is on features that support the use of information to create value. Recommendation for Researchers: The results contribute to the capabilities literature by showing that the shift in focus from technical product-related capabilities to relationship-related capabilities is not yet evident among small online store operators. Impact on Society: In addition to offering tools with different integration possibilities, supporting IT-consuming firms in making the most of the possibilities would be very helpful. Future Research: The comprehension of the relationship between digital service capabilities and digital service performance would benefit from future research that takes into account additional control variables. The theoretical model of this study can be further studied by using other performance measures, such as market performance, as dependent variables.

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“…Information systems (IS) serve a key competitive, operational and strategic role in most organisations [1] [2]. However, despite its importance, the development, implementation and exploitation of IS within organisations remains problematic and has been fraught with failure [3], abandonment [4], escalations [5] and overruns [6].…”

Section: Introductionmentioning

confidence: 99%

Salient Complexities of Engaging External Consultants in Information Systems Projects

Chipulu

Ojiako

Thomas

2024

IEEE Trans. Eng. Manage.

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Project sponsors have sought to develop the necessary competence to address various challenges they face during project development, implementation and exploitation by employing different initiatives including the engagement and use of external consultants.However, doing so is associated with a number of consequences, including a significant risk of exacerbating project complexities. With this in mind, we set out in this study to examine the salient differences in the key project complexities between projects engaging consultants and those not engaging consultants. Data is obtained from 146 project management practitioners engaged in projects in Canada and the United States. Data analysis is undertaken using 3-way Multidimensional Scaling (MDS). Findings as relates to the key complexities associated with information systems projects, points to the manifestation of six broad dimensions of complexity namely (i) 'Variety' (ii) 'Control' (iii) 'Criticality' (iv) 'Scope and repetition' (v) 'Information' and (vi) 'Dependence'. As relates to how consultant engagement changes the salience of these key project complexities, we find that consultant engagement leads to more varied and stronger structural complexity and higher salience of interpersonal and organisational complexity.

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IT Business Value and Competitive Advantage: Integrating a Customer-Based View

Cited by 7 publications

References 95 publications

Social media use and performance of small businesses: a customer-centric perspective

Social media use and performance of small businesses: a customer-centric perspective

The View of IT-Consuming Firms on the Key Digital Service Capabilities of IT-Producing Firms

Salient Complexities of Engaging External Consultants in Information Systems Projects

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