Sustaining IT Advantage: The Role of Structural Differences

Clemons, Eric K.; Row, Michael C.

doi:10.2307/249639

Cited by 668 publications

(392 citation statements)

References 20 publications

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“…However, to the contrary, other studies (e.g., Clemons and Row, 1991;Mata et al, 1995;Smith et al, 1996) suggest that, while IT can potentially create value for customers, and thereby provide competitive advantage, IT is viewed as a homogeneous resource and difficult to develop in a tailored, unique or heterogeneous way to produce competitive advantage by a company. Accordingly, IT is likely to become a product which becomes available to firms via imitation and acquisition, i.e., IT may become more like a commodity acquisition than a resource that can, alone, produce competitive advantage.…”

Section: Extent Of Managerial It Use and Firm Profitabilitymentioning

confidence: 97%

Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

Maiga

Nilsson

Jacobs

2013

International Journal of Accounting Information Systems

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Organizations increasingly rely on information technology (IT) to improve performance. Yet, there is debate about the pay-off of the IT revolution, and empirical evidence suggests that investments in IT do not guarantee enhanced performance. Drawing from accounting, marketing, management and information technology literature, this study uses structural equation modeling to assess the extent to which managerial use of IT is intertwined with control issues including learning routines (internal and external), product quality, cost improvement, customer satisfaction and firm profitability. The conceptual framework builds on knowledge-and resource-based views and return on quality perspectives. The results indicate support for the theoretical framework. Extent of managerial IT use influences internal and external learning routines that influence quality and cost improvement. Quality improvement significantly impacts customer satisfaction and cost improvement that significantly impact firm profitability. The non-hypothesized paths are not significant, indicating that learning routines, quality improvement, cost improvement and customer satisfaction are intervening variables between extent of managerial IT use and firm profitability. Further, the sample is split into two industry subgroups, durable and nondurable goods subgroups, and the two-group analysis reveals that industry moderates the relationship among the variables under study. The effects are in general more pronounced for durable goods firms.

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Section: Extent Of Managerial It Use and Firm Profitabilitymentioning

confidence: 97%

Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

Maiga

Nilsson

Jacobs

2013

International Journal of Accounting Information Systems

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“…If new entrants can't raise their own barriers, then in the long run new ITs will become competitive necessities rather than a source of sustainable advantage [10]. With no first-mover advantage or barriers to duplication, firms that capitalize on a new IT will be vulnerable to incumbents or new entrants, leading to competition where the benefits of an innovation bring market efficiency but not higher rents for the sellers.…”

Section: Technology and Newly-vulnerable Marketsmentioning

confidence: 99%

“…First, if there are no barriers to replication of an innovation, followers will benefit from the experience of the first-mover and innovations will diffuse across competitors, leaving the first-mover with the sunk costs of experimentation, research, and development [29]. Second, followers may learn from the experience of the first-mover and enter the market with a better product and a more agile, less costly technology infrastructure [10].…”

Section: Technology and Newly-vulnerable Marketsmentioning

confidence: 99%

The Emerging Role of Vertical Search Engines in Travel Distribution: A Newly-Vulnerable Electronic Markets Perspective

Granados

Kauffman

King³

2008

Proceedings of the 41st Annual Hawaii International Conference on System Sciences (HICSS 2008)

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Abstract. Information technology (IT) advances often create turmoil and disturb existing industry structures. We analyze the impact of the Internet and e-commerce technologies on digital intermediaries in the travel distribution sector. We suggest that the emerging role of meta-search agents, which act as shopbots for online travel, lead to the increasing vulnerability of existing intermediaries in the industry, especially the information infrastructure-providing global distribution systems (GDSs) and the distribution-based online travel agencies (OTAs). We base our analysis on the theories of newly-vulnerable markets and intermediation. This supports our examination of the characteristics of existing electronic distribution players in the industry that make them vulnerable to new search engine technologies. The main findings that we report are: (1) technological advances change the defensibility of e-market intermediaries to new value-adding secondary intermediaries, and (2) the valueadded opportunities come from providing consumers with enhanced transparency-based price and feature search, as well as comparison capabilities. Our analysis allows us to make bold predictions about the future of the industry, and to apply our findings to other industry contexts.

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“…First, process-level value flows will be observed, consisting of increased process efficiencies, that are reflected in cost savings and improved product quality (Barua, et al, 1995;Brynjolfsson & Hitt 1995;Srinivasan et al, 1994;Lee & Clark 1996). Second, market-level value flows will also occur, based on the extent to which the business model offers sustainable competitive advantage (Clemons, 1991;Clemons & Row, 1991b;Teece, 1987). In some cases, another market-level value flow is generated by positive network externalities that increase the value of the technology for all of the firm's technology adopters, as more adopters join the network (Katz & Shapiro, 1986;Kauffman et al, 1999).…”

Section: Relevant Theoretical Perspectivesmentioning

confidence: 99%

“…(See, for example, Brynjolfsson & Hitt, 1998;Chircu & Kauffman, 2000b;Clemons & Row, 1991b;Davern & Kauffman, 2000;Leonard-Barton, 1988;Teece, 1987) Recent theoretical perspectives on technology investments also point out that successful implementation requires firms to reengineer their processes to enable the new capabilities of the technology in which they invest (Barua, Lee & Whinston, 1996;Brynjolfsson & Hitt, 1998;Lee & Clark, 1996).…”

Section: Relevant Theoretical Perspectivesmentioning

confidence: 99%

A Framework for Performance and Value Assessment of E-Business Systems in Corporate Travel Distribution

Chircu

Kauffman

2001

Lectures in E-Commerce

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This chapter proposes and illustrates a framework that the authors call the value life cycle for e-commerce systems. Based on recent research results that relate to technology investments in the corporate travel industry and related theoretical and empirical perspectives, the authors lay out the corporate travel ecommerce system solutions value life cycle. The perspective involves estimating the maximum value that that an organization can obtain by implementing an e-commerce system in a specific industry and competitive environment. It also considers multiple factors that act as value contingencies for the implementation process. These create barriers to value accrual and to the post-implementation performance assessment. The analytical perspective emphasizes the importance of comparing the expected value from the evaluation stage with the realized value from actual system usage. The authors highly a key finding for corporate travel procurement specialists: the value of e-commerce systems infrastructure is surprisingly dependent a variety of factors in the implementation environment of the organization, and as a result, the authors suggest that investments in this kind of technology be made with considerable caution and a clear sense of the potential pitfalls that may lead to insufficient value accrual.

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Sustaining IT Advantage: The Role of Structural Differences

Cited by 668 publications

References 20 publications

Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

The Emerging Role of Vertical Search Engines in Travel Distribution: A Newly-Vulnerable Electronic Markets Perspective

A Framework for Performance and Value Assessment of E-Business Systems in Corporate Travel Distribution

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