Managerial interpretations of the role of information systems in competitive actions and firm performance: A grounded theory investigation

Information Systems Research

Volumn 21, Issue 3, 2010, Pages 496-515

  Vannoy, Sandra A ^a   Salam, A F ^b  

^a APPALACHIAN STATE UNIVERSITY   (United States)

^b UNIVERSITY OF NORTH CAROLINA AT GREENSBORO   (United States)

Author keywords

Competitive actions; Competitive dynamics; Firm performance; Grounded theory; Information systems; Interpretative research; Managerial interpretation; Process; Strategy

Indexed keywords

COMPETITION; INFORMATION SYSTEMS; MANAGERS; PROCESSING;

COMPETITIVE ACTIONS; COMPETITIVE DYNAMICS; FIRM PERFORMANCE; GROUNDED THEORY; MANAGERIAL INTERPRETATION; STRATEGY;

EMBEDDED SYSTEMS;

EID: 77957369341     PISSN: 10477047     EISSN: 15265536     Source Type: Journal    
DOI: 10.1287/isre.1100.0301     Document Type: Article

References (105)

1. Alavi, M., D. Leidner. 2001. Review: Knowledge management and knowledge management systems: Conceptual foundations and research issues. MIS Quart. 25(1) 107-136.
2. Amram, M., N. Kulatilaka. 1999. Real Options: Managing Strategic Investment in an Uncertain World. Harvard Business School Press, Boston.
3. Banbury, C., W. Mitchell. 1995. The effect of introducing important incremental innovations on market share and business survival. Strategic Management J. 16 161-182.
4. Barnes, J. 1984. Cognitive biases and their impact on strategic planning. Strategic Management J. 5 129-137.
5. Barney, J. 1991. Firm resources and sustained competitive advantage. J. Management 17(1) 99-120.
6. Bento, A., R. Bento. 2006. Factors affecting the outcomes of performance management systems. J. Inform. Technology Management 17(2) 23-32.
7. Berger, P., T. Luckman. 1966. The Social Construction of Reality. Doubleday, New York.
8. Bharadwaj, A. 2000. A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS Quart. 24(1) 159-196.
9. Bhatt, G., V. Grover. 2005. Types of information technology capabilities and their role in competitive advantage: An empirical study. J. Management Inform. Systems 22(2) 253-277.
10. Boland, R., R. Tenkasi, D. Te'eni. 1994. Designing information technology to support distributed cognition. Organ. Sci. 5(3) 456-475.
11. Brynjolfsson, E., L. Hitt. 1998. Beyond the productivity paradox. Comm. ACM 41(8) 49-55.
12. Burrell, G., G. Morgan. 1979. Sociological Paradigms and Organizational Analysis. Heinemann, London.
13. Burt, R. 1976. Positions in networks. Soc. Forces 55(1) 93-122.
14. Burt, R. 1992. Structural Holes: The Social Structure of Competition. Harvard University Press, Cambridge, MA.
15. Carr, N. 2003. IT doesn't matter. Harvard Bus. Rev. 81(5) 41-49.
16. Caves, R., P. Ghemawat. 1992. Identifying mobility barriers. Strategic Management J. 13 1-12.
17. Chen, M.-J. 1996. Competitor analysis and interfirm rivalry: Toward a theoretical integration. Acad. Management Rev. 21(1) 100-134.
18. Chen, M.-J., I. MacMillan. 1992. Nonresponse and delayed response to competitive moves: The roles of competitor dependence and action irreversibility. Acad. Management J. 35(3) 539-570.
19. Chen, M.-J., D. Miller. 1994. Competitive attack, retaliation and performance: An expectancy-valence framework. Strategic Management J. 15(2) 85-102.
20. Chen, M.-J., J. Farh, I. MacMillan. 1993. An exploration of the expertness of outside informants. Acad. Management J. 36 1614-1632.
21. Chen, M.-J., K. Smith, C. Grimm. 1992. Action characteristics as predictors of responses. Management Sci. 38 439-455.
22. Chen, M.-J., K. Su, W. Tsai. 2007. Competitive tension: The awareness-motivation-capability perspective. Acad. Management J. 50(1) 101-118.
23. Chen, M.-J., S. Venkataraman, S. Sloan Black, I. MacMillan. 2002. The role of irreversibilities in competitive interaction: Behavioral considerations from organization theory. Managerial Decision Econom. 23(4/5) 187-207.
24. Chen, Y., J. Zhu. 2004. Measuring information technology's indirect impact on firm performance. Inform. Tech. Management 5 9-22.
25. Chi, L., C. Holsapple, C. Srinivasan. 2007. Competitive dynamics in electronic networks: A model and the case of interorganizational systems. Internat. J. Electronic Commerce 11(3) 7-49.
26. Corbin, J., A. Strauss. 2008. Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory. Sage Publications, Thousand Oaks, CA.
27. Crawford, V. 2003. Lying for strategic advantage: Rational and boundedly rational misrepresentation of intentions. Amer. Econom. Rev. 93(1) 133-149.
28. Croasdell, D. 2001. IT's role in organizational memory and learning. Inform. Systems Management 18(1) 8-11.
29. Dean, J., Jr., M. Sharfman. 1993. Procedural rationality in the strategic decision-making process. J. Management Stud. 30(4) 587-610.
30. Dutton, J., L. Fahey, V. Narayanan. 1983. Toward understanding strategic issue diagnosis. Strategic Management J. 4(4) 307-323.
31. Eisenhardt, K. 1989. Building theories from case study research. Acad. Management Rev. 14(4) 532-550.
32. Fairbank, J., G. Labianca, H. Steensma, R. Metters. 2006. Information processing design choices, strategy, and risk management performance. J. Management Inform. Systems 23(1) 293-319.
33. Ferrier, W. 2001. Navigating the competitive landscape: The drivers and consequences of competitive aggressiveness. Acad. Management J. 44 858-877.
34. Ferrier, W., C. Holsapple, R. Sabherwal. 2007. Call for papers: Information Systems Research special issue: Digital systems and competition. Inform. Systems Res. 18(2) 228-230.
35. Ferrier, W., K. Smith, C. Grimm. 1999. The role of competitive action in market share erosion and industry dethronement: A study of industry leaders and challengers. Acad. Management J. 42(4) 372-388.
36. Floyd, S., B. Woolridge. 1999. Knowledge creation and social networks in corporate entrepreneurship: The renewal of organizational capability. Entrepreneurship Theory Practice 23(3) 123-143.
37. Galbraith, J. 1974. Organization design: An information processing view. Interfaces 4(3) 28-36.
38. Galunic, D., S. Rodan. 1998. Resource recombinations in the firm: Knowledge structures and the potential for Shumpeterian innovation. Strategic Management J. 19 1193-1201.
39. Gattiker, T., D. Goodhue. 2004. Understanding the local-level costs and benefits of ERP through organizational information processing theory. Inform. Management 41 431-443.
40. Gimeno, J. 1999. Reciprocal threats in multimarket rivalry: Staking out "spheres of influence" in the U.S. airline industry. Strategic Management J. 20 101-128.
41. Gioa, D., R. Chitipeddi. 1991. Sensemaking and sense giving in strategic change initiation. Strategic Management J. 12(6) 443-448.
42. Granovetter, M. 1973. The strength of weak ties. Amer. J. Sociol. 78(6) 1360-1380.
43. Grant, R. 1996. Toward a knowledge-based theory of the firm. Strategic Management J. 17 109-122.
44. Grimm, C., H. Lee., K. Smith. 2006. Strategy as Action: Competitive Dynamics and Competitive Advantage. Oxford University Press, New York.
45. Hambrick, D., T. Cho, M.-J. Chen. 1996. The influence of top management team heterogeneity on firms' competitive moves. Admin. Sci. Quart. 41 659-684.
46. Hatala, J., J. Lutta. 2009. Managing information sharing within an organizational setting: A social network perspective. Performance Improvement Quart. 21(4) 5-33.
47. Hodgkinson, G., N. Bown, A. Maule, K. Glaister, A. Pearman. 1999. Breaking the frame: An analysis of strategic cognition and decision making under uncertainty. Strategic Management J. 20(10) 977-985.
48. Hollan, J., E. Hutchins, D. Kirsch. 2000. Distributed cognition: Toward a new foundation for human-computer interaction research. ACM Trans. Comput.-Human Interaction 7(2) 174-196.
49. Huber, G. 1981. The nature of organizational decision making and the design of decision support systems. MIS Quart. 5(2) 1-10.
50. Huber, G., R. Daft. 1987. The information environments of organizations. F. M. Jablin, L. L. Putnam, K. H. Roberts, L. W. Porter, eds. Handbook of Organizational Communication. Sage Publications, Beverly Hills, CA, 130-164.
51. Huber, G., K. Lewis. 2010. Cross-understanding: Implications for group cognition and performance. Acad. Management Rev. 35(1) 6-26.
52. Hunter, M., J. Beck. 2000. Using repertory grids to conduct cross-cultural information systems research. Inform. Systems Res. 11(1) 93-101.
53. Hutchins, E. 1991. The social organization of distributed cognition. L. Resnick, ed. Perspectives on Socially Shared Cognition. American Psychological Association, Washington, DC, 283-287.
54. Isabella, L. 1990. Evolving interpretations as a change unfolds: How managers construe key organizational events. Acad. Management J. 33(1) 7-41.
55. Jarvenpaa, S., B. Ives. 1993. Organizing for global competition: The fit of information technology. Decision Sci. 24(3) 547-580.
56. Javenpaa, S., D. Leidner. 1998. An information company in Mexico: Extending the resource-based view of the firm to a developing country context. Inform. Systems Res. 9(4) 342-361.
57. Jayachandran, S., R. Varadarjan. 2006. Does success diminish competitive responsiveness? Reconciling conflicting perspectives. J. Acad. Marketing Sci. 34(3) 284-294.
58. Kane, G., M. Alavi. 2008. Casting the net: A multimodal network perspective on user-system interactions. Inform. Systems Res. 19(3) 253-272.
59. Kearns, G., R. Sabherwal. 2007. Strategic alignment between business and information technology: A knowledge-based view of behaviors, outcome, and consequences. J. Management Inform. Systems 23(3) 129-162.
60. Ketchen, D., C. Snow., V. Hoover. 2004. Research on competitive dynamics: Recent accomplishments and future challenges. J. Management 30(6) 779-804.
61. Kirzner, I. 1973. Competition and Entrepreneurship. University of Chicago Press, Chicago.
62. Kirzner. 1997. Entrepreneurial discovery and the competitive market process: An Austrian approach. J. Econom. Literature 35(1) 60-85.
63. Klein, H., M. Myers. 1999. A set of principles for conducting and evaluating interpretive field studies in information systems. MIS Quart. 23(1) 67-93.
64. Knight, K., R. McDaniel. 1979. Organizations: An Information Systems Perspective. Wadsworth Publishing Co., Belmont, CA.
65. Kogut, B., N. Kulatilaka. 2004. Real options pricing and organizations: The contingent risks of extended theoretical domains. Acad. Management Rev. 29(1) 102-110.
66. Kroll, M., P. Wright, R. Heiens. 1999. The contribution of product quality to competitive advantage: Impacts on systematic variance and unexplained variance in returns. Strategic Management J. 20(4) 375-384.
67. Lant, T., F. Miliken, B. Batra. 1992. The role of managerial learning and interpretation in strategic persistence and re-orientation. Strategic Management J. 13 585-608.
68. Larson, J., E. Gargis, C. Bauman. 2004. Shared knowledge and subgroup influence during decision-making discussions. J. Behavioral Decision Making 17 245-262.
69. MacMillan, I., M. McCaffery, G. Van Wijk. 1985. Competitors' responses to easily imitated new products-Exploring commercial banking product introductions. Strategic Management J. 6(1) 75-86.
70. Malone, T. 1997. Is empowerment just a fad? Sloan Management Rev. 38(2) 23-35.
71. Markus, M., D. Robey. 1988. Information technology and organizational change: Causal structure in theory and research. Management Sci. 34(5) 583-598.
72. McAfee, A., E. Brynjolfsson. 2008. Investing in the IT that makes a competitive difference. Harvard Bus. Rev. 7/8 98-107.
73. McGrath, R., W. Ferrier, A. Mendelow. 2004. Real options as engines of choice and heterogeneity. Acad. Management Rev. 29(1) 86-101.
74. Miller, D. 1990. The Icarus Paradox. Harper Collins, New York.
75. Miller, D., M.-J. Chen. 1994. Sources and consequences of competitive inertia: A study of the U.S. airline industry. Admin. Sci. Quart. 39(1) 1-23.
76. Miller, D., M.-J. Chen. 1996. The simplicity of competitive repertoires: An empirical analysis. Strategic Management J. 17(6) 419-439.
77. Mintzberg, H., A. McHugh. 1985. Strategy formation in an adhocracy. Admin. Sci. Quart. 30 160-197.
78. Mintzberg, H., J. Waters. 1982. Tracking strategy in an entrepreneurial firm. Acad. Management J. 25 465-499.
79. Newell, A., H. Simon. 1972. Human Problem Solving. Prentice Hall, Englewood Cliffs, NJ.
80. Orlikowski, W. 1993. CASE tools as organizational change: Investigating incremental and radical changes in systems development. MIS Quart. 17(3) 309-340.
81. Pavlou, P., O. El Sawy. 2006. From IT leveraging competence to competitive advantage in turbulent environments: The case of new product development. Inform. Systems Res. 17(3) 198-227.
82. Premkumar, G., K. Ramamurthy, C. Saunders. 2005. Information processing view of organizations: An exploratory examination of fit in the context of interorganizational relationships. J. Management Inform. Systems 22(1) 257-294.
83. Porter, M. 1980. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press, New York.
84. Rerup, C. 2004. Variations in organizational mindfulness. 64th Acad. Management Best Conf. Paper Proc., Briarcliff Manor, NY.
85. Sabherwal, R., D. Robey. 1993. An empirical taxonomy of implementation process based on sequences of events in information systems development. Organ. Sci. 4(4) 548-576.
86. Sambamurthy, V., A. Bharadwaj, V. Grover. 2003. Shaping agility through digital options: Reconceptualizing the role of IT in contemporary firms. MIS Quart. 27(2) 237-263.
87. Santos, F., K. Eisenhardt. 2009. Constructing markets and shaping boundaries: Entrepreneurial power in nascent fields. Acad. Management J. 52(4) 643-671.
88. Schumpeter, J. A. 1934. The Theory of Economic Development. Harvard University Press, Cambridge, MA.
89. Simon, H. 1955. A behavioral model of rational choice. Quart. J. Econom. 69 99-118.
90. Simon, H. 1960. The New Science of Management Decision. Harper, New York.
91. Simon, H. 1965. The Shape of Automation. Harper and Row, New York.
92. Simon, H. 1991. Organizations and markets. J. Econom. Perspect. 5(2) 25-44.
93. Smircich, L., C. Stubbart. 1985. Strategic management in an enacted world. Acad. Management Rev. 10 724-736.
94. Smith, K., W. Ferrier, H. Ndofor. 2001. Competitive dynamics research: Critique and future directions. M. A. Hitt, R. E. Freeman, J. S. Harrison, eds. The Blackwell Handbook of Strategic Management. Blackwell Publishers, Malden, MA, 315-361.
95. Smith, K. G., G. M. Grimm, M. J. Chen, M. J. Gannon. 1989. Predictors of competitive strategic actions: Theory and preliminary evidence. J. Bus. Res. 18 245-258.
96. Smith, K., G. Grimm, M. Gannon, M. Chen. 1991. Organizational information processing, competitive responses, and performance in the U.S. domestic airline industry. Acad. Management J. 34 60-85.
97. Stein, E, V. Zwass. 1995. Actualizing organizational memory with information systems. Inform. Systems Res. 6(2) 85-117.
98. Thomas, J., R. McDaniel. 1990. Interpreting strategic issues: Effects of strategy and the information-processing structure of top management teams. Acad. Management J. 33(2) 286-306.
99. Thompson, J. 1967. Organizations in Action. McGraw-Hill Book Co., New York.
100. Vilcassim, N., V. Kadiyali, K. Pradeep. 1999. Investigating dynamic multifirm market interactions in price and advertising. Management Sci. 45 499-521.
101. Wade, M., J. Hulland. 2004. The resource-based view and information systems research: Review, extension, and suggestions for future research. MIS Quart. 28(1) 107-142.
102. Walsh, J. P. 1995. Managerial and organizational cognition: Notes from a trip down memory lane. Organ. Sci. 6 280-321.
103. Walsh, J., G. Ungson. 1991. Organizational memory. Acad. Management Rev. 16(1) 57-91.
104. Weick, K. 1979. The Social Psychology of Organizing. Addison-Wesley, Reading, MA.
105. Zajac, E., M. Bazerman. 1991. Blind spots in industry and competitor analysis: Implications of interfirm (mis)perception to strategic decisions. Acad. Management Rev. 16 37-46.