The impacts of IT capability on internet-enabled supply and demand process integration, and firm performance in manufacturing and services

Liu, Hefu; Huang, Qian; Wei, Shaobo; Huang, Liqiang

doi:10.1108/ijlm-11-2013-0132

Cited by 48 publications

(42 citation statements)

References 67 publications

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“…Services are developed and provided in close direct interaction with customers and service partners. Therefore, servitized firms pay less attention to establish additional IT tools for service innovation, because personnel or IT‐based communication channels with customers and service ecosystem partners have often already been established (Chen and Tsou, ; Liu, Huang, Wei, and Huang, ). Furthermore, customers' and service ecosystem partners' heterogeneity inhibits the broad use of IT tools (Barrett, Davidson, Prabhu, and Vargo, ), because the partners in the firm's ecosystem may differ regarding their infrastructure, work procedures, and IT experience levels and, thus, reject the adoption of such tools.…”

Section: Conceptual Framework and Hypothesesmentioning

confidence: 99%

Use and Efficacy of Information Technology in Innovation Processes: The Specific Role of Servitization

Kroh¹,

Luetjen²,

Globocnik³

et al. 2018

J of Product Innov Manag

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Innovation activities and, particularly, service innovations, impose high demands on a firm's information processing capabilities. IT tools are supposed to support internal and external information flows, thereby improving a firm's information processing capabilities. However, past research is indecisive about how IT tools influence innovation performance. Furthermore, past research has not considered that services have an increasingly relevant role in a firm's innovation portfolio that can complicate information processing. This study therefore draws on information processing theory and service innovation literature to develop a conceptual model that explains how IT use intensity—depending on the firm's business focus—affects innovation program performance. By using a cross‐industry, multi‐informant sample of the innovation programs of 116 firms, which were collected from 887 informants, this article provides empirical evidence that (i) intensive IT use in order to exchange information with internal and external stakeholders improves the firm‐wide market knowledge, which in turn has a positive impact on a firm's innovation program performance; (ii) the performance impact of market knowledge becomes stronger with increasing degrees of servitization; (iii) a higher degree of servitization reduces IT's use intensity. This research demonstrates the dilemma that servitized firms face: Their business focus hinders the use of IT tools, although the latter will enable them to gain more benefits from the improved market knowledge they create. Practitioner Points Intensive IT use positively influences the firm‐wide innovation performance. The intensive use of IT tools to strengthen internal information flows and IT tools to support exchange with external stakeholders increase a firm's market knowledge, which enhances the innovation program performance. Service innovations have higher information requirements than product innovations and profit therefore more from intensive IT use, but services' complexity hinders IT implementation. Firms with a higher degree of servitization use less IT, although they can profit more from the market knowledge IT tools create. Servitized firms need to install a flexible, modular, and open IT system for efficient IT use and to include all relevant internal and external stakeholders.

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Section: Conceptual Framework and Hypothesesmentioning

confidence: 99%

Use and Efficacy of Information Technology in Innovation Processes: The Specific Role of Servitization

Kroh¹,

Luetjen²,

Globocnik³

et al. 2018

J of Product Innov Manag

View full text Add to dashboard Cite

show abstract

“…Strategic collaboration is defined as the extent to which a firm collaborates on strategic planning and forecasting activities with its business partners/suppliers (Flynn et al 2010;Kim and Lee 2010). It reflects a firm's ability to conduct continuous and consistent transactions with its trading partners (Liu et al 2015;Zhang et al 2016). Coordination refers to transaction related activities between firm and its business partners (Huo et al 2015).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The Impact of IT‑Business Alignment on SME Performance: The Mediating Effects of Strategic Collaboration, Coordination, and Responsiveness

Bi¹

2020

EJISE

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The alignment between information technology (IT) and business strategy is regarded as an ongoing issue for information systems (IS) researchers and practitioners. Although prior studies suggest the enabling role of IT‑business alignment on firm performance, our understanding of the processes through which such gains are achieved in the small‑to‑medium enterprise (SME) context still remains unclear. Moreover, there is limited research exporing how SMEs employ the alignment between IT and business strategy to work closely with their business partners in order to achieve business competences. In order to address these research gaps, this study investigates whether and how IT‑business alignment enables SMEs to achieve performance goals through developing strategic business activities effectively and efficiently. Using structural equation modelling analyses of survey responses collected from 211 Australian high growth SMEs, we find positive, significant, and impactful linkages between IT‑business alignment, strategic collaboration, coordination, responsiveness, and SME performance. The results also show that strategic collaboration, coordination, and responsiveness fully mediate the relationship between IT‑business alignment and SME performance. This study contributes to the IS research by providing empirically‑supported explanations for the critical role of IT‑business alignment in SME success. More significantly, through investigating the effect of IT‑business alignment at the inter‑mediate business process level, this research provides new insights to understand the underlying influential mechanisms of IT‑business alignment in the SME context. These findings have important implications for SME business managers.

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“…RBV provides better understanding on the factors affecting strategic alignment by considering those factors that represent set of resources and capabilities [23] [24]. The application of IT capability is to enhance the service-delivery process, produce new products, processes, strategy, and work faster, eliminate all communication barriers within the organization, and empower workers to link up with customers and suppliers to achieve the competitive advantage [25] [26].…”

Section: It Capabilitymentioning

confidence: 99%

Untitled

2017

IJBM

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Information technology (IT) has always become as a critical tool for the execution of business strategy and a driver of business performance. With rapid changes in particular to the financial markets, IT capability seems to be the backbone to improve the business processes. Innovative banking services and personalized portfolio management are evolving as the market consolidates due to mergers and acquisitions of up-to-date strategy. As a result, the focus is no longer on cutting costs alone, but rather on simultaneously improving services to customers. Many companies attracted to adopt the Business process reengineering (BPR), as a major management approach that focuses on doing things in a better way in order to achieve a radical improvement on quality, speed, customer service, and reduction in cost. Number of studies suggested IT should be used together with BPR to develop the organizational capabilities which leads to superior organizational performance. Nevertheless, there are also views that IT is ubiquitous and cannot be a source of sustained competitive advantage. Hence, this paper interested to examine the role of information technology (IT) capability and business process re-engineering (BPR) implementation in the Islamic bank in Malaysia. Data has been collected through a hand-delivery method. A simple random sampling would be used for sample selection and sent to Islamic banks' managers. The expected outcome of this study would provide important insights to both managers and researchers for further understanding on the effects of BPR factors and IT capability on organizational performance of Islamic banks.

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The impacts of IT capability on internet-enabled supply and demand process integration, and firm performance in manufacturing and services

Cited by 48 publications

References 67 publications

Use and Efficacy of Information Technology in Innovation Processes: The Specific Role of Servitization

Use and Efficacy of Information Technology in Innovation Processes: The Specific Role of Servitization

The Impact of IT‑Business Alignment on SME Performance: The Mediating Effects of Strategic Collaboration, Coordination, and Responsiveness

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