How Information Management Capability Influences Firm Performance

Revisiting IS business value research: what we already know, what we still need to know, and how we can get there

“…Our approach is consistent with the conceptualisation of Mithas et al (2011), who propose a two-stage model with the information management capability as a focal construct and organisational capabilities as the mediators between information management capability and firm performance.…”

“…Important parts are deemed (intra-and interorganisational) processes, practices and structures, all of which develop over time, thereby creating socio-organisational change. However, researchers have been remarkably silent concerning the questions of how and when socioorganisational change induces changes in IS capabilities and vice versa; the only pertinent studies we found were those of Rai & Tang (2010) and Mithas et al (2011), who operationalise socio-organisational capabilities by distinguishing customer management capability, process management capability and performance management capability). Mithas et al (2011) find empirical evidence that all three capabilities are positively correlated with IS capabilities (more specifically, with information management capabilities).…”

“…One stream of research conceptualises and investigates (the mediating role of) internal capabilities (Shin, 1997;Bannister & Remenyi, 2000;Brynjolfsson & Hitt, 2000;Devaraj & Kohli, 2000;Irani & Love, 2001;Irani, 2002;Oz, 2005). A second stream acknowledges the importance of complementarities, and, in particular, IS capabilities (Aral & Weill, 2007;Hsieh et al, 2011;Kim et al, 2011;Mithas et al, 2011) and socio-organisational capabilities (DeSanctis & Poole, 1994;Rowe, 1994;Orlikowski, 1996;Whittington et al, 1999;Avgerou, 2001;Pinsonneault & Kraemer, 2002;Aral & Weill, 2007;Kane & Alavi, 2007;Leonardi, 2007;Zammuto et al, 2007;Mutch, 2010;Tambe et al, 2012). It acknowledges the existence of time-variant relationships between complementarities and IS.…”

“…IS business value creation process as grey box Our review of the literature reveals that researchers, particularly those drawing on (socio-) organisational theories, have identified IS capabilities and socio-organisational capabilities as complementarities that mediate the impact of (investments in) IS in supporting the competitive goals of a firm (DeSanctis & Poole, 1994;Rowe, 1994;Orlikowski, 1996;Avgerou, 2001;Aral & Weill, 2007;Kane & Alavi, 2007;Mutch, 2010;Rai & Tang, 2010;Mithas et al, 2011). We thus distinguish internal value (complementarities) from competitive value, which is directly market-oriented (e.g.…”

Transforming decision-making processes: a research agenda for understanding the impact of business analytics on organisations

“…In particular, researchers have identified that the effects of investments on indicators of value creation such as stock returns and stock risk are not direct; rather, those effects are mediated by their effects on variables such as customer satisfaction (Fornell et al, 2006(Fornell et al, , 2009. Researchers have also documented the value of being a data-driven organisation and shown that organisations with better information management capabilities achieve improved performance in many different ways (Mithas et al, 2011;Mithas et al, 2012;Saldanha et al, 2013;Schryen, 2013). Mithas et al (2013) and Gillon et al (2014) identify six pathways to value through the use of analytics-based capabilities, namely, Adding volume and growth, Differentiating, Reducing costs, Optimising risks, Improving industry structure (also innovating with products and services), and Transforming business models and business processes for continued relevance in a changing landscape (captured in the acronym ADROIT).…”