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Abstract
This article develops a research model of the relationships between IT resources, IT capabilities, IT competitive advantage, and the financial performance of an organization. This model is empirically tested with data collected from IT managers and executives in the U.S. The results suggest that while tangible IT resources offer little competitive advantage, intangible IT resources are positively associated with IT capabilities that ultimately lead to IT competitive advantage and the improved financial performance of the organization.
Notes
1. There is a subtle difference between IT and IS. Usually, information technology refers only to technology—the software, hardware, networks, and databases—whereas information systems is a broader term used for systems that are composed of various information technologies, procedures, and people. However, both terms are used interchangeably in the literature. In this article IT was used in its broader sense to describe an organization’s technologies, procedures, knowledge assets, and human resources.
2. Of the respondents, 27% chose the option to not indicate if they were male or female. This could be the case as some individuals may feel researchers consciously or unconsciously review their answers with a biased eye depending on the respondent’s gender.
3. Descriptive statistics with the correlations were not included due to page lengths. Correlations provided upon request.
Additional information
Funding
Notes on contributors
Rafi Ashrafi
Rafi Ashrafi is an associate professor at Sultan Qaboos University in Oman. He has over 30 years of experience in teaching, research, and consulting in academia and business in Canada and the Middle East. He was a project manager with EDS and Alcatel and a consultant in IT Project Management. Also, he was a researcher and an adjunct professor at the University of Calgary in the Schulich School of Engineering and Haskyn School of Business. Rafi has published over 50 research papers in international journal and conference proceedings.
John Mueller
John Mueller is an assistant professor at Western Michigan University (WMU) where he teaches entrepreneurship. His research interests include entrepreneurial finance, technology entrepreneurship, and sport entrepreneurship. He has presented his research at various conferences, won awards for reviewing scholarly articles, and received research grants from various organizations, including the Kauffman Foundation. Prior to joining WMU in 2012, he started and ran several businesses over a ten year period in the software industry. John holds a PhD from the University of Louisville, an MBA from the University of Illinois, and a BBA in management information sciences from Southern Methodist University.