Firm Context and Patterns of IT Infrastructure Capability (Best Paper Award)

The importance of a firm’s information technology (IT) infrastructure capability is increasingly recognised as critical to firm competitiveness. This is particularly the case for firms in industries going through dynamic change, for firms reengineering their business processes, and for those with extensive international or geographically dispersed operations. However, the notion of IT infrastructure is still evolving and there has been very little empirically based research on the patterns of IT infrastructure capability across firms

Information Technology Capability and Firm Performance: The Role of Strategic Orientation

A key strand of IT business value research is concerned with the measurement of IT capability of firms and the impact of IT capability on the accounting-based measures of firm performance. Previous empirical studies examining this relationship in the context of developed economies have reported mixed results, and there is a dearth of studies in the context of emerging economies. In this study, we seek to employ archival data from the emerging economy context of India, and replicate the findings from the earlier studies, in order to examine the existing theory. We also propose to extend the existing theory by incorporating the role of strategic orientation (indicated by the Miles and Snow strategy types) of the firms while examining the impact of IT capability on firm performance. Thus, the results of this study offer possibilities of both theoretical and practical implications

Learning to Innovate in Nigeria's cable and wire manufacturing sub-sector: inferences from a firm-level case study

Firm performance is known to be connected to firm-level innovation capability. Innovation capability, in turn, is an output of technological learning. This paper evaluates technological learning among firms in the Cable and Wire manufacturing sub-sector in Nigeria, using a purposively selected case firm. We developed a model of the relationship between the innovative activities of the firm - as evidence of its capability – and its knowledge acquisition methodology. These are discussed within the context of the firm’s stock of human capital. We found low technological innovation capability and high capability for organisational and marketing innovation. Preparedness for technological learning is relatively poor with staff training intensity of 5% and innovation intensity of 0.0075%. We therefore propose stronger interconnectedness of the National Innovation System and creation of industry specific structures that could enhance learning.Technological learning; sub-sector; Cable and Wire manufacturing industry

An investigation of the effects of IT investment on firm performance: The role of complementarity.

The concept of complementarity has been introduced into IT-based firm performance research in order to address inconsistent magnitudes of the impacts from IT investments across studies. This dissertation seeks to understand the scope of IT investment complementarities, to examine the different ways in which different complementarities impact the payoff from an IT investment, and to empirically test the effects of complementary investments in the context of investments in SCM and CRM. The knowledge-based view of the firm (KBV) is employed in order to understand a boundary and different roles of complementarity. The KBV sees organizational capabilities from the aggregation of knowledge into capabilities and the deployment of knowledge assets in the form of capabilities. Knowledge aggregation requires individuals' specialized knowledge (human capital) and the aggregation mechanisms of structural, social, and community capital. The combination of these three forms of capital, together with human capital, constitutes organizational capabilities. Once constituted, the complementary deployment of capabilities is important. Foundational capability must be in place in order for the focal IT investment to deliver value, synergistic capability amplifies the economic benefits of the focal IT investment, and management capability is managers' organizing vision and capability to successfully deploy the focal IT investment.The research findings show that three forms of structural, community, and human capital have highly significant impacts on firm performance measured by Net Cash Flow, Gross Profit, and EBITDA. Synergistic capabilities and management capabilities are found to be highly significant in moderating between three forms of capital and firm performance measurements.The data for this study were drawn from secondary data sources: Annual Reports, Press Releases, and news articles. The dependent variables are drawn from COMPUSTAT. The data collection method for the independent variables was a keyword search. The research sampling frame is confined within a single value chain however distinctively different industry categories are represented within this value chain. This sampling strategy yielded a total of 111 firms that had invested in SCM and 45 firms that had invested in CRM

Determinants of Innovation Capability in Small UK Firms: An Empirical Analysis

The paper is an empirical investigation of key internal and external sources of innovation capability in small and medium firms (SME) in the UK. An experimental measure of innovation capability is designed, which captures not merely the occurrence of innovations but also their scientific complexity and originality. The results obtained with this measure compare favourably to those obtained with more conventional statistics. A range of factors internal to firms are found to be relevant, including owners' technical education and prior working experience in large firms and R&D institutions, technical skills of the workforce, and investments in R&D and training. Significant external factors are: public financial support for R&D, and interaction with nearby R&D and training institutions. Although interaction with customers, suppliers and similar-oriented firms are more frequent than the former, there is no evidence that intensive linkages of this kind would be important for innovative capability. These findings do not support the thrust of current UK policy, which seeks to promote SME innovative performance through the formation of geographical clusters of firms in similar lines of business

Idiosyncratic Values of IT-enabled Agility at the Operation and Strategic Levels

Although research recognizes the role of IT and organizational agility on firm performance, a research gap to investigate IT-enabled agility at strategic and operational levels exists. In this study, we define operation-level agility as a firm’s ability to respond to market changes or emerging opportunities by quickly modifying its business routines. In contrast, we define strategic-level agility as a firm’s ability to define long-range investment decisions and implement them to accommodate strategic moves and business initiatives. We investigate how IT can empower these two levels of agility, and, in turn, how these two levels of agility can influence firm performance. We also examine the relative roles of the two levels of IT-enabled agility in manufacturing and service settings. We use survey data to validate the proposed hypotheses. The results indicate that, in general, IT leads to superior firm performance through agility at both levels. Further analyses, however, suggest that IT-enabled operation-level agility is a stronger success factor for service firms and IT-enabled strategic-level agility is more critical in manufacturing firms. Our findings provide a theoretical insight regarding the industry-specific values of IT-enabled agility at operation and strategic levels and practical implications for organizational IT deployment under specific industrial settings

IT and Firm Agility: An Electronic Integration Perspective

Firms evolving in increasingly turbulent environments need to respond to market threats and opportunities with speed. At the same time, firms implement numerous information technologies (IT) in the hope of streamlining processes and providing managers with unfettered access to information from both within and outside the firm. While research shows how agility and IT contribute to firm performance, the relationship between these two constructs remains relatively unexplored. Using an electronic integration perspective, we develop a framework that addresses this issue. The framework suggests that IT applications affect the two components of agility (sensing and responding) through two types of integration (internal and external). The framework also explains the mediating roles of knowledge exploration, knowledge exploitation, and process coupling. Four propositions are developed and illustrated with different examples. Avenues for future research are developed

Air Force Institute of Technology Research Report 2007

This report summarizes the research activities of the Air Force Institute of Technology’s Graduate School of Engineering and Management. It describes research interests and faculty expertise; lists student theses/dissertations; identifies research sponsors and contributions; and outlines the procedures for contacting the school. Included in the report are: faculty publications, conference presentations, consultations, and funded research projects. Research was conducted in the areas of Aeronautical and Astronautical Engineering, Electrical Engineering and Electro-Optics, Computer Engineering and Computer Science, Systems and Engineering Management, Operational Sciences, Mathematics, Statistics and Engineering Physics

Digital Options Theory for IT Capability Investment

While research has shown that investments in IT capability may translate into improved firm performance, how and why they do is still a source of debate. Drawing on financial options thinking, recent research suggests that managers can support appropriate investment decisions by examining digital options. However, current research has not effectively translated the financial options construct into the IT domain, which makes it difficult to rigorously examine digital options. To address this void, we revisit general options theory and review current notions of digital options. To support understanding, we extend current theorizing by offering a rigorous conceptual foundation that defines the digital option lifecycle and relationships to neighboring constructs. To support practice, we present principles for examining digital options for a specific business process. To illustrate the detailed workings of the theory, we examine a production planning process in the dairy industry to arrive at a set of desirable and feasible IT capability investments. Our proposed theory supports managerial practice by offering a rigorous and actionable foundation for digital options thinking. It also sets an agenda for academic research by articulating theory-based constructs and principles that are subject to further empirical and theoretical investigation

Air Force Institute of Technology Research Report 2009

This report summarizes the research activities of the Air Force Institute of Technology’s Graduate School of Engineering and Management. It describes research interests and faculty expertise; lists student theses/dissertations; identifies research sponsors and contributions; and outlines the procedures for contacting the school. Included in the report are: faculty publications, conference presentations, consultations, and funded research projects. Research was conducted in the areas of Aeronautical and Astronautical Engineering, Electrical Engineering and Electro-Optics, Computer Engineering and Computer Science, Systems and Engineering Management, Operational Sciences, Mathematics, Statistics and Engineering Physics