How does the rivalry between firms explain the IT capability gap, leanness and performance of firms?

Inmyung Choi, Joey F. George, David E. Cantor

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

What is the role of IT capability in a competitive environment? Does IT capability contribute to the initiation of strategic actions within firms? To understand the relative position of IT in firms, we calculated the IT capability gap. This research has developed a research model in which the IT capability gap between two competing firms influences the leanness of a leading firm (Eroglu and Hofer, 2011). Also, we have suggested how the leanness of a firm is related to financial performance (i.e., ROS). Theoretically, this study is grounded in the competitive dynamics perspective (Ferrier et al., 1999), which emphasizes the role of rivalry between two competing firms. We empirically tested the research model using secondary data sets comprising of 322 firm-year panel data from 2002 to 2009. We have concluded that the IT capability of firms has a critical role to implement lean practices and eventually enhances firm performance.

Original languageEnglish
Title of host publication2015 Americas Conference on Information Systems, AMCIS 2015
PublisherAmericas Conference on Information Systems
ISBN (Electronic)9780996683104
StatePublished - 2015
Event21st Americas Conference on Information Systems, AMCIS 2015 - Fajardo, Puerto Rico
Duration: Aug 13 2015Aug 15 2015

Publication series

Name2015 Americas Conference on Information Systems, AMCIS 2015

Conference

Conference21st Americas Conference on Information Systems, AMCIS 2015
CountryPuerto Rico
CityFajardo
Period08/13/1508/15/15

Keywords

  • Competitive dynamics
  • Empirical leanness
  • Firm performance
  • IT capability
  • Is strategy

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