The development of the DDG-capability in firms: An evaluation of its impact on firm financial performance

We examine whether firms that develop the Digital Data Genesis dynamic capability show higher performance. Using detailed survey data on the capabilities developed by companies by the usage of digital data and firm financial performance of 96 firms, we find that the firms that develop the DDG dynamic capability have levels of ROA, ROS and revenue growth higher than others do. Our results provide one of the first empirical evidence on the direct link between DDG dynamic capability and firm financial performanc

Economic Crisis Policy Analytics Based on Artificial Intelligence

Part 4: AI, Data Analytics and Automated Decision MakingInternational audienceAn important trend in the area of digital government is its expansion beyond the support of internal processes and operations, as well as transactions and consultations with citizens and firms, which were the main objectives of its first generations, towards the support of higher-level functions of government agencies, with main emphasis on public policy making. This gives rise to the gradual development of policy analytics. Another important trend in the area of digital government is the increasing exploitation of artificial intelligence techniques by government agencies, mainly for the automation, support and enhancement of operational tasks and lower-level decision making, but only to a very limited extent for the support of higher-level functions, and especially policy making. Our paper contributes towards the advancement and the combination of these two important trends: it proposes a policy analytics methodology for the exploitation of existing public and private sector data, using a big data oriented artificial intelligence technique, feature selection, in order to support policy making concerning one of the most serious problems that governments face, the economic crises. In particular, we present a methodology for exploiting existing data of taxation authorities, statistical agencies, and also of private sector business information and consulting firms, in order to identify characteristics of a firm (e.g. with respect to strategic directions, resources, capabilities, practices, etc.) as well as its external environment (e.g. with respect to competition, dynamism, etc.) that affect (positively or negatively) its resilience to the crisis with respect to sales revenue; for this purpose an advanced artificial intelligence feature selection algorithm, the Boruta ‘all-relevant’ variables identification one, is used. Furthermore, an application of the proposed economic crisis policy analytics methodology is presented, which provides a first validation of the usefulness of our methodology

The Effect of Strategic Alignment of Complementary IT and Organizational Capabilities on Competitive Firm Performance

This study explores how firm performance can be explained from the strategic alignment of information technology (IT) and organizational capabilities, i.e., IT flexibility, dynamic capabilities, and absorptive capacity. We build upon dynamic capabilities theory and conceptualize our research model through the lens of strategic alignment methods. Then, we empirically test our main hypothesis using PLS-SEM analysis on a sample of 322 international firms. Outcomes show that measurements and indicators of all first-order and higher-order constructs are reliable and valid. Results also indicate that there is a positive relationship between strategic alignment and competitive firm performance. This study highlights the importance of alignment between IT and organizational capabilities. Strategic alignment can, therefore, be seen an important facilitator of competitive firm performance in constantly changing environments. We conclude with a discussion and conclusion, outline limitations of the current study and present some directions for future research

Effect of information management capability on organizational performance

[EN] This study assesses the value for organizations of effectively managing information. It develops the information management concept from the resourcebased view and proposes and validates a scale to measure the capability of information management in an organization. Empirical research in the Spanish IT consulting and telecommunication sectors enables us to vouch for the positive causal relation between information management capability and three different measures of organizational performance: competitive position, productivity, and customer satisfaction.The authors thank the financial support from project DER2015-65519-C2-2-R MINECO/FEDER, UE.Devece Carañana, CA.; Palacios Marqués, D.; Martínez Simarro, D. (2017). Effect of information management capability on organizational performance. 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Strategic goal accomplishment in export ventures: the role of capabilities, knowledge, and environment

The management literature suggests that setting strategic goals facilitates the identification of appropriate business strategies and focuses management attention and available resources on their accomplishment, enabling subsequent goal realization. Yet the literature also indicates that firms often find it difficult to realize their strategic goals and may find it even more challenging to do so when operating in foreign markets. However, little is known empirically about the extent to which strategic goals enable desired strategic positions to be achieved and factors that may affect this relationship. We examine this important issue using primary data from a sample of exporting manufacturers. Results support the existence of previously theorized strategic goal–realized strategic position gaps and show that these negatively impact performance. Thus, simply setting strategic goals does not necessarily aid in accomplishing the desired outcomes, and any failure to do so is costly. Drawing on organization theory, we find that internal capabilities and knowledge, and external market factors play important roles in minimizing such strategic goal–realized strategic position gaps. Specifically, we show that businesses with stronger architectural capabilities, those with higher levels of internationalization, and those operating in less dynamic market environments are better able to realize their intended strategic objectives and thereby enjoy superior performance