The effect of IT resource diversity on firm performance

Inmyung Choi, Kunsoo Han, Alain Pinsonneault, Animesh Animesh

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

1 Scopus citations

Abstract

While a wealth of research has examined the relationship between information technology (IT) and firm performance, prior studies have mostly used variables that capture the level of IT investment (i.e., IT intensity or IT capital) to measure the contribution of IT. In this study, we suggest the concept of IT resource diversity, which captures the extent to which a firm's IT resources are diversified based on IT applications deployed within the firm. Then, drawing upon the competitive dynamics literature, we theorize how IT resource diversity can contribute to firm performance directly as well as indirectly (by supporting complex competitive actions). Using firm-level panel data from the United States, we find that while IT resource diversity does not directly contribute to firm performance, it helps firms achieve superior financial performance from complex competitive actions. Further, we find that this moderating effect of IT resource diversity is stronger in industries with higher velocity. Our findings underscore the need to consider IT resource diversity as a key variable for examining the business value of IT in developing a firm's competitiveness.

Original languageEnglish
Title of host publicationInternational Conference on Information Systems 2018, ICIS 2018
PublisherAssociation for Information Systems
ISBN (Electronic)9780996683173
StatePublished - 2018
Event39th International Conference on Information Systems, ICIS 2018 - San Francisco, United States
Duration: Dec 13 2018Dec 16 2018

Publication series

NameInternational Conference on Information Systems 2018, ICIS 2018

Conference

Conference39th International Conference on Information Systems, ICIS 2018
Country/TerritoryUnited States
CitySan Francisco
Period12/13/1812/16/18

Keywords

  • Business value of IT
  • Competitive actions
  • IT resource diversity
  • IT strategy
  • Industry velocity

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