Changing the Competitive Landscape: Continuous Innovation Through IT-Enabled Knowledge Capabilities
We theoretically and empirically investigate the relationship between information technology (IT) and firm innovation. Invoking absorptive capacity (ACAP) theory, we introduce and develop the concepts of three types of IT-enabled knowledge capabilities. Firm innovation is examined through two observ...
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Published in: | Information systems research Vol. 21; no. 3; pp. 472 - 495 |
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Main Authors: | , , , |
Format: | Journal Article |
Language: | English |
Published: |
Linthicum
INFORMS
01-09-2010
The Institute for Operations Research and the Management Sciences (INFORMS) Institute for Operations Research and the Management Sciences |
Subjects: | |
Online Access: | Get full text |
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Summary: | We theoretically and empirically investigate the relationship between information technology (IT) and firm innovation. Invoking absorptive capacity (ACAP) theory, we introduce and develop the concepts of three types of IT-enabled knowledge capabilities. Firm innovation is examined through two observable innovation outcomes: patents, and new product and service introductions. These innovation outcomes are often labeled as competitive actions aggressively undertaken by firms to gain market share or to achieve profitability. We use secondary data about IT-enabled knowledge capabilities and innovation outcomes of 110 firms. Our data results provide strong support for our main assertion that knowledge capabilities that are enhanced through the use of IT contribute to firm innovation. The study's findings suggest that the three types of IT-enabled knowledge capabilities have differential effects on firm innovation. This study substantially contributes to the information systems (IS) research, methodology, and practice in multiple ways. |
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ISSN: | 1047-7047 1526-5536 |
DOI: | 10.1287/isre.1100.0298 |