Path dependence of dynamic information technology capability: An empirical investigation

Journal of Management Information Systems

Volumn 28, Issue 3, 2011, Pages 45-84

  Lim, Jee Hae ^a   Stratopoulos, Theophanis ^b   Wirjanto, Tony ^c  

^a UNIVERSITY OF WATERLOO   (Canada)

^b UNIVERSITY OF NEW HAMPSHIRE   (United States)

^c STANFORD UNIVERSITY   (United States)

Author keywords

dynamic organizational IT capability; dynamic random effects; fixed effects logit models; IT business value; path dependence; true state dependence

Indexed keywords

FIXED EFFECTS; IT BUSINESS VALUE; IT CAPABILITIES; PATH DEPENDENCE; STATE DEPENDENCE;

COMPETITION; INDUSTRIAL MANAGEMENT; INDUSTRY; MATHEMATICAL MODELS;

INFORMATION TECHNOLOGY;

EID: 84857874881     PISSN: 07421222     EISSN: None     Source Type: Journal    
DOI: 10.2753/MIS0742-1222280302     Document Type: Article

References (123)

1. Amit, R., and Schoemaker, P. Strategic assets and organizational rent. Strategic Management Journal, 14, 1 (1993), 33-46.
2. Armstrong, C.P., and Sambamurthy, V. Information technology assimilation in firms: The influence of senior leadership and IT infrastructures. Information Systems Research, 10, 4 (1999), 304-327.
3. Bacheldor, B. Keep pace on the innovation speedway. Information Week 500, 956 (September 2003), 71-74.
4. Barney, J.B. Strategic factor markets: Expectations, luck, and business strategy. Management Science, 32, 10 (1986), 1231-1241.
5. Barney, J.B. Firm resources and sustained competitive advantage. Journal of Management, 17, 1 (1991), 99-120.
6. Barney, J.B. Is the resource-based view a useful perspective for strategic management research? Yes. Academy of Management Review, 26, 1 (1991), 41-56.
7. Barney, J.B. Gaining and Sustaining Competitive Advantage. Upper Saddle River, NJ: Prentice Hall, 2002.
8. Barney, J.B., and Clark, D.N. Resource-Based Theory: Creating and Sustaining Competitive Advantage. Oxford: Oxford University Press, 2007.
9. Barua, A., and Mukhopadhyay, T. Information technology and business performance: Past, present, and future. In B. Zmud (ed.), In Framing the Domains of Information Technology Management: Projecting the Future . . . Through the Past. Cincinnati, OH: Pinnaflex Educational Resources, 2000, pp. 65-88.
10. Barua, A.; Kriebel, C.H.; and Mukhopadhyay, T. Information technologies and business value: An analytic and empirical investigation. Information Systems Research, 6, 1 (1995), 3-24.
11. Bassellier, G.; Reich, B.H.; and Benbasat, I. Information technology competence of business managers: A definition and research model. Journal of Management Information Systems, 17, 4 (Spring 2001), 159-182. (Pubitemid 32716737)
12. Bharadwaj, A. A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS Quarterly, 24, 1 (2000), 169-196.
13. Bharadwaj, A.; Sambamurthy, V.; and Zmud, R. IT capabilities: Theoretical perspectives and empirical operationalization. In Proceedings of the 20th International Conference on Information Systems. Charlotte, NC, 1999, pp. 378-385.
14. Bhatt, G.D., and Grover, V. Types of information technology capabilities and their role in competitive advantage: An empirical study. Journal of Management Information Systems, 22, 2 (Fall 2005), 253-277. (Pubitemid 41763447)
15. Brynjolfsson, E., and Hitt, L. Paradox lost? Firm-level evidence on the returns to information systems spending. Management Science, 42, 4 (1996), 541-558. (Pubitemid 126577314)
16. Brynjolfsson, E., and Hitt, L. Beyond the productivity paradox. Communications of the ACM, 41, 8 (1998), 49-55. (Pubitemid 128446357)
17. Brynjolfsson, E., and Hitt, L. Beyond computation: Information technology, organizational transformation and business performance. Journal of Economic Perspectives, 14, 4 (2000), 23-48.
18. Brynjolfsson, E., and Hitt, L. Computing productivity: Firm-level evidence. Review of Economics and Statistics, 85, 4 (2003), 793-808. (Pubitemid 37417018)
19. Carr, N. IT doesn't matter. Harvard Business Review, 81, 3 (2003), 41-49.
20. Chabrow, E. Approaches differ by industry. Information Week 500, 803 (September 2000), 385-390.
21. Chabrow, E. Manufacturing: Rethinking how I.T. and people are assembled. Information Week, September 23, 2002 (available at www.Information Week.com/shared/printableArticle .jhtml?articleID=6503424/).
22. Chamberlain, G. Analysis of covariance with qualitative data. Review of Economic Studies, 47, 1 (1980), 225-238.
23. Chamberlain, G. Heterogeneity, omitted variable bias, and duration dependence. In J.J. Heckman and B. Singer (eds.), Longitudinal Analysis of Labor Market Data. Cambridge: Cambridge University Press, 1985, pp. 3-38.
24. Chatterjee, D.; Pacini, C.; and Sambamurthy, V. The shareholder-wealth and tradingvolume effects of information technology infrastructure investments. Journal of Management Information Systems, 19, 2 (Fall 2002), 7-42. (Pubitemid 35312524)
25. Chay, K., and Hyslop, D. Identification and estimation of dynamic binary response panel data models: Empirical evidence using alternative approaches. Working paper, Economics Department, University of California Berkeley, 2000.
26. Chi, L.; Ravichandran, T.; and Andrevski, G. Information technology, network structure, and competitive action. Information Systems Research, 21, 3 (2010), 543-570.
27. Cohen, A.A. Coefficient of agreement for nominal scales. Educational and Psychological Measurement, 20, 1 (1960), 37-46.
28. Cohen, D.; Dey, E.; and Lys, T. Real and accrual-based earnings management in the preand post-Sarbanes-Oxley periods. Accounting Review, 83, 3 (2008), 757-787.
29. Colkin, E. Equifax knows speed pays when delivering credit data. Information Week, September 17, 2001 (available at www.Information Week.com/news/6506737/).
30. Cone, E. Less complexity, more cost-efficiency. Information Week 500, 700 (September 1998), 209-214.
31. Cowen, R. Invest in the future: Your employees. Information Week 500, 907 (September 2002), 148.
32. Cox, D. The regression analysis of binary sequences. Journal of the Royal Statistical Society, Series B, 20 (1958), 215-232.
33. Curley, M. The IT transformation at Intel. MIS Quarterly Executive, 5, 4 (2006), 155-168.
34. D'Addio, A., and Honoré, B. Duration dependence and time-varying variables in discrete time duration models. Working paper, Economics Department, Princeton University, Princeton, 2004.
35. D'Aveni, R.A. Hypercompetition. New York: Free Press, 1994.
36. David, P.A. Clio and the economics of QWERTY. American Economic Review, 75, 2 (1985) 332-337.
37. David, P.A. Path dependence, its critics and the quest for historical economics. In P. Garrouste and S. Ioannides (eds.), Evolution and Path Dependence in Economic Ideas: Past and Present. Cheltenham, UK: Edward Elgar, 2001, pp. 15-40.
38. Davis, B. Shared vision makes IT pay off. Information Week 500, 700 (September 1998), 93-100.
39. Dehning, B., and Stratopoulos, T. Determinants of a sustainable competitive advantage due to an IT-enabled strategy. Journal of Strategic Information Systems, 12, 1 (2003), 7-28.
40. Dehning, B.; Richardson, V.; and Stratopoulos, T. Information technology investment and firm value. Information & Management, 42, 7 (2005), 989-1008. (Pubitemid 41162401)
41. Dierickx, I., and Cool, K. Asset stock accumulation and sustainability of competitive advantage. Management Science, 35, 12 (1989), 1504-1511.
42. Dos Santos, B.L.; Peffers, K.; and Mauer, D.C. The impact of information technology investment announcements on the market value of the firm. Information System Research, 4, 1 (1993), 1-23.
43. Dunn, D. Personal touch for VIPs-Customer focus. Information Week, 963 (November 10, 2003), 76-77.
44. Durocher, J. Challenges of change. Information Week 500, 754 (September 27, 1999), 123-130.
45. Feeny, D.F., and Ives, B. In search of sustainability: Reaping long-term advantage from investments in information technology. Journal of Management Information Systems, 7, 1 (Summer 1990), 27-46.
46. Foley, J. New ideas pay off in long term returns. Information Week 500, 956 (September 2003), 83-84.
47. Francis, J., and Schipper, K. Have financial statements lost their relevance? Journal of Accounting Research, 37, 2 (1999), 320-352.
48. George, T. Making way for high tech. Information Week 500, 855 (September 2001), 165-168.
49. Gillhouse, D. Streamline. Integrate. Innovate. Repeat. Information Week 500, 956 (September 2003), 156.
50. Godfrey, P.C., and Hill, C.W.L. The problem of unobservables in strategic management research. Strategic Management Journal, 16, 7 (1995), 519-533.
51. Hamel, G., and Valikangas, L. The quest for resilience. Harvard Business Review, 81, 9 (2003), 52-63.
52. Hausman, J.A. Specification tests in econometrics. Econometrica, 46, 6 (1978), 1251-1271.
53. Havenstein, H. Users speed feeds to data warehouses. Computerworld (August 8, 2005), 1.
54. Hayes, M. IT moves to the front burner. Information Week 500, 855 (September 2001), 133-135.
55. Hayes, M. Hungry for bottom-line results. Information Week 500, 956 (September 2003), 107.
56. Heckman, J.J. Heterogeneity and state dependence. In S. Rosen (ed.), Heterogeneity and State Dependence in Studies in Labor Markets. Chicago: University of Chicago Press, 1981, pp. 91-128.
57. Heckman, J.J. The incidental parameters problem and the problem of initial conditions in estimating a discrete time-discrete data stochastic process. In C. Manski and D. McFadden (eds.), The Structural Analysis of Discrete Data. Cambridge: MIT Press, 1981, pp. 179-195.
58. Helfat, C.E., and Peteraf, M.A. The dynamic resource-based view: Capability lifecycles. Strategic Management Journal, 24, 10 (2003), 997-1010.
59. Helfat, C.E., and Peteraf, M.A. Understanding dynamic capabilities: Progress along a developmental path. Strategic Organization, 7, 1 (2009), 91-102.
60. Hidding, G.J. Sustaining strategic IT advantage in the information age: How strategy paradigms differ by speed. Journal of Strategic Information Systems, 10, 3 (2001), 201-222. (Pubitemid 33675438)
61. Honoré, B., and Kyriazidou, E. Panel data discrete choice models with lagged dependent variables. Econometrica, 68, 4 (2000), 839-874.
62. Hoover, G. (ed.). Hoover's Handbook of American Business. Austin: Hoover's Business Press, 1997-2004.
63. Hoover, J.N. From bankrupt to innovative in four years. Information Week, September 12, 2006 (available at www.Information Week.com/news/192600624/).
64. Hoover, J.N. 2007 chief of the year: Tim Stanley. Information Week (December 8, 2007), 43-48.
65. Im, K.S.; Dow, K.E.; and Grover, V. A reexamination of IT investment and the market value of the firm: An event study methodology. Information Systems Research, 12, 1 (2001), 103-117.
66. Information technology honor awarded to Harrah's John Boushy for dramatic technological changes at Harrah's Entertainment. PR Newswire, May 1, 2000 (available at www.hotel-online .com/News/PressReleases2000-2nd/May00-JBoushy. html).
67. Information Week research. Information Week 500 (2002-2004). CMP United Business Media.
68. Jehle, G.A., and Reny, P.J. Advanced Microeconomic Theory, 2d ed. Boston: Addison Wesley, 2000.
69. Joshi, K.D.; Chi, L.; Datta, A.; and Han, S. Changing the competitive landscape: Continuous innovation through IT-enabled knowledge capabilities. Information Systems Research, 21, 3 (2010), 472-495.
70. Kettinger, W.J.; Grover, V.; Guha, S.; and Segars, A.H. Strategic information systems revisited: A study in sustainability and performance. MIS Quarterly, 18, 1 (1994), 31-58.
71. Kinney, J. Networking is essential. Information Week 500, 649 (September 1997), 80.
72. Kohli, R., and Grover, V. Business value of IT: An essay on expanding research directions to keep up with the times. Journal of the Association for Information Systems, 9, 1 (2008), 23-39.
73. Lee, H.; Whang, J.; Ahsan, K.; Gordon, E.; Faragalla, A.; Jain, A.; Mohsin, A.; and Shi, G. Harrah's Entertainment Inc.: Real-time CRM in a service supply chain. Stanford University Case GS-50, Palo Alto, 2006.
74. Leiblein, M.J.; Reuer, J.J.; and Dalsace, F. Do make or buy decisions matter? The influence of organizational governance on technological performance. Strategic Management Journal, 23, 9 (2002), 817-833. (Pubitemid 34964370)
75. Loveman, G.W. Diamonds in the data mine. Harvard Business Review, 81, 5 (2003), 109-113.
76. Malerba, F., and Orsenigo, L. Technological regimes and firm behavior. Industrial Corporate Change, 2, 1 (1993), 45-71.
77. Mansfield, E. Industrial Research and Technological Innovation: An Econometric Analysis. New York: Norton, 1968.
78. Mata, F.J.; Fuerst, W.L.; and Barney, J.B. Information technology and sustained competitive advantage: A resource-based analysis. MIS Quarterly, 19, 4 (1995), 487-505.
79. McFarlan, W.F., and Nolan, R.L. Does IT matter? An HBR Debate. Harvard Business Review Online, 1, 17 (August 25, 2003) (available at hbswk.hbs.edu/archive/3637.html).
80. McGee, M.K. Profile: David Starr-For CIO Starr, being no. 1 is part of the pattern. Information Week 500, 803 (September 2000), 70.
81. Melville, N.; Kraemer, K.; and Gurbaxani, V. Review: Information technology and organizational performance: An integrative model of IT business value. MIS Quarterly, 28, 2 (2004), 283-322.
82. Milgrom, P., and Roberts, J. The economics of modern manufacturing: Technology, strategy, and organization. American Economic Review, 80, 3 (1990), 511-528.
83. Miller, J. The Internet's impact on business relationships. Information Week, September 17, 2001 (available at www.Information Week.com/news/6506627/).
84. Morrow, J.L., Jr.; Sirmon, D.G.; Hitt, M.A.; and Holcomb, T.R. Creating value in the face of declining performance: Firm strategies and organizational recovery. Strategic Management Journal, 28, 3 (2007), 271-283.
85. Mott, R. Knowledge payback. Information Week 500, 700 (September 14, 1998), 298.
86. Mueller, D.C. The Dynamic of Company profits: An International Comparison. Cambridge: Cambridge University Press, 1990.
87. Nelson, R., and Winter, S. An Evolutionary Theory of Economic Change. Cambridge: Harvard University Press, 1982.
88. Neo, B.S. Factors facilitating the use of information technology for competitive advantage: An exploratory study. Information & Management, 15, 4 (1988), 191-201.
89. Nolan, R., and McFarlan, F.W. Information technology and the board of directors. Harvard Business Review, 83, 10 (2005), 96-106.
90. O'Leary, D. Keep up with the pace. Information Week 500, 649 (September 1997), 76.
91. Pavlou, P., and El Sawy, O. From IT leveraging competence to competitive advantage in turbulent environments: The case of new product development. Information Systems Research, 17, 3 (2006), 198-227. (Pubitemid 44371786)
92. Peteraf, M. The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14, 3 (2003), 179-191.
93. Piccoli, G., and Ives, B. Review: IT-dependent strategic initiatives and sustained competitive advantage: A review and synthesis of the literature. MIS Quarterly, 29, 4 (2005), 747-776. (Pubitemid 44841803)
94. Porter, M. Competitive Strategy. New York: Free Press, 1980.
95. Powell, T.C., and Dent-Micallef, A. Information technology as competitive advantage: The role of human, business, and technology resources. Strategic Management Journal, 18, 5 (1997), 375-405. (Pubitemid 127467823)
96. Powell, T.C. Varieties of competitive parity. Strategic Management Journal, 24, 1 (2003), 61-86.
97. Priem, R.L., and Butler, J.E. Tautology in the resource-based view and the implications of externally determined resource value: Further comments. Academy of Management Review, 26, 1 (2001), 57-66.
98. Ranganathan, C., and Brown, C.V. ERP investments and the market value of firms. Information Systems Research, 17, 2 (2006), 145-161.
99. Ravichandran, T., and Lertwongsatien, C. Effect of information systems resources and capabilities on firm performance: A resource-based perspective. Journal of Management Information Systems, 21, 4 (Summer 2005), 237-276. (Pubitemid 40871310)
100. Ricadela, A. A tough climb. Information Week 500, 907 (September 2002), 30-38.
101. Rivkin, J.W. Imitation of complex strategies. Management Science, 46, 6 (2000), 824-844.
102. Roberts, P.W., and Dowling, G.R. Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23, 12 (2002), 1077-1093. (Pubitemid 35459489)
103. Sambamurthy, V.; Bharadwaj, A.; and Grover, V. Shaping agility through digital options: Reconceptualizing the role of information technology in contemporary firms. MIS Quarterly, 27, 2 (2003), 237-263.
104. Santhanam, R., and Hartono, E. Linking IT capability to firm performance. MIS Quarterly, 27, 1 (2003), 125-153.
105. Stahl, S. Cheers to the year's top tech innovators. Information Week 500, 1006 (September 2004), 8.
106. Sull, D. How to thrive in turbulent markets. Harvard Business Review, 87, 2 (2009), 78-90.
107. Sutton, J. Sunk Costs and Market Structure. Cambridge: MIT Press, 1991.
108. Sweat, J. Glad we thought of it. Information Week 500, 855 (September 2001), 93-96.
109. Teece, D., and Pisano, G. The dynamic capabilities of firms: An introduction. Industrial and Corporate Change, 3, 3 (1994), 537-556.
110. Teece, D.; Pisano, G.; and Shuen, A. Dynamic capabilities and strategic management. Strategic Management Journal, 18, 7 (1997), 509-533. (Pubitemid 127467809)
111. Teece, D. Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28, 13 (2007), 1319-1350. (Pubitemid 350134181)
112. Violino, B. Defining IT innovation. Information Week 500, 700 (September 1998), 58-70.
113. Violino, B. IT excellence. Information Week 500, 754 (September 1999), 48-62.
114. Wade, M., and Hulland, J. Review: The resource-based view and information systems research: Review, extension and suggestions for future research. MIS Quarterly, 28, 1 (2004), 107-142.
115. Weier, M.H. Too much information. Feeling overwhelmed? You need a comprehensive strategy, not a butterfly net, to deal with data overload. Information Week (April 9, 2007) 36.
116. Wernerfelt, B. A resource-based view of the firm. Strategic Management Journal, 5, 2 (1984), 171-180.
117. Weston, R. Where to find innovators. Information Week (September 14, 1998) (available at www.Information Week.com/700/method.htm).
118. Whiting, R. E-channels, ERP deliver positive results. Information Week 500, 907 (September 2002), 83.
119. Williams, C. Moving toward leadership at Georgia-Pacific. Information Week (September 17, 2001) (available at www.Information Week.com/news/6506625/).
120. Wooldridge, J.M. Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity. Journal of Applied Econometrics, 20, 1 (2005), 39-54. (Pubitemid 40854807)
121. Worthen, B. Dow Chemical CEO: IT for reinvention. CIO.com (September 15, 2006) (available at www.cio.com/article/print/24981/).
122. Zachary, G.P. Technology. Wall Street Journal (November 11, 1991), B1.
123. Zhu, K. The complementarity of information technology infrastructure and e-commerce capability: A resource-based assessment of their business value. Journal of Management Information Systems, 21, 1 (Summer 2004), 167-202.