A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation1

Anandhi Bharadwaj

doi:10.2307/3250983

journal article Mar 01, 2000

A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation1

Anandhi Bharadwaj

MIS Quarterly Vol. 24 No. 1 pp. 169-196 · MIS Quarterly

View at Publisher Save 10.2307/3250983

Abstract

The resource-based view of the firm attributes superior financial performance to organizational resources and capabilities. This paper develops the concept of IT as an organizational capability and empirically examines the association between IT capability and firm performance. Firm specific IT resources are classified as IT infrastructure, human IT resources, and IT-enabled intangibles. A matched-sample comparison group methodology and publicly available ratings are used to assess IT capability and firm performance. Results indicate that firms with high IT capability tend to outperform a control sample of firms on a variety of profit and cost-based performance measures.

Topics

No keywords indexed for this article. Browse by subject →

References

125

[1]

Amit "Strategic Assets and Organizational Rent" Strategic Management Journal (1993) 10.1002/smj.4250140105

[2]

Balakrishnan "Financial Benefits from JIT Adoption: Effects of Customer Concentration and Cost Structure" The Accounting Review (1996)

[3]

Barber "Detecting Abnormal Operating Performance: The Empirical Power and Specification of Test Statistics" Journal of Financial Economics (1996) 10.1016/0304-405x(96)84701-5

[4]

Barney "Firm Resources and Sustained Competitive Advantage" Journal of Management (1991) 10.1177/014920639101700108

[5]

Barney (1997)

[6]

Strategic Factor Markets: Expectations, Luck, and Business Strategy

Jay B. Barney

Management Science 1986 10.1287/mnsc.32.10.1231

[7]

Barua "Information Technologies and Business Value: An Analytic and Empirical Investigation" Information Systems Research (1995) 10.1287/isre.6.1.3

[8]

Beath "Partnering for Business Value: The Shared Management of the IS Infrastructure"

[9]

Bensaou "Interorganizational Cooperation: The Role of Information Technology" Information Systems Research (1997) 10.1287/isre.8.2.107

[10]

Bharadwaj "Information Technology Effects on Firm Performance as Measured by Tobin’s q" Management Science (1999) 10.1287/mnsc.45.7.1008

[11]

Bharadwaj "Sustainable Competitive Advantage in Service Industries: A Conceptual Model and Research Propositions" ” Journal of Marketing (1993) 10.1177/002224299305700407

[12]

Brown "Removing the Financial Performance Halo from Fortune’s Most Admired Companies" Academy of Management Journal (1994) 10.2307/256676

[13]

Brown "America’s Most Admired Companies" Fortune Magazine (1999)

[14]

Brown "Organizational Learning and Communities of Practice: Toward a Unified View of Working, Learning and Innovation" Organization Science (1991) 10.1287/orsc.2.1.40

[15]

Brown "Organizing Knowledge" California Management Review (1998) 10.2307/41165945

[16]

Brynjolfsson "The Productivity Paradox of Information Technology" Communications of the ACM (1993) 10.1145/163298.163309

[17]

Brynjolfsson "Breaking Boundaries" Information Week (1997)

[18]

Brynjolfsson "Is Information Systems Spending Productive? New Evidence and New Results"

[19]

Brynjolfsson "Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending" Management Science (1996) 10.1287/mnsc.42.4.541

[20]

Capon "Marketing and Technology: A Strategic Coalignment" Journal of Marketing (1987) 10.1177/002224298705100301

[21]

Cash (1992)

[22]

Chakravarthy "Measuring Strategic Performance" Strategic Management Journal (1986) 10.1002/smj.4250070505

[23]

Chatfield "The Impact of IOS-Enabled Business Process Change on Business Outcomes: Transformation of the Value Chain of Japan Airlines" ” Journal of Management Information Systems (1997) 10.1080/07421222.1997.11518152

[24]

Chen "An Exploration of the Expertness of Outside Informants" Academy of Management Journal (1993) 10.2307/256823

[25]

Clark "Building Change-readiness Capabilities in the IS Organization: Insights From the Bell Atlantic Experience" MIS Quarterly (1997) 10.2307/249722

[26]

Clemons "Corporate Strategies for Information Technology: A Resource-Based Approach" Computer (1991) 10.1109/2.116848

[27]

Clemons "Information Systems for Sustainable Competitive Advantage" Information & Management (1986) 10.1016/0378-7206(86)90010-8

[28]

Clemons "Sustaining IT Advantage: The Role of Structural Differences" MIS Quarterly (1991) 10.2307/249639

[29]

Conover (1980)

[30]

Copeland "Airline Reservation Systems: Lessons from History" MIS Quarterly (1988) 10.2307/249202

[31]

Conner "A Historical Comparison of the Resource-Based Theory and Five Schools of Thought Within Industrial Organization Economics: Do I Have a New Theory of the Firm" Journal of Management (1991) 10.1177/014920639101700109

[32]

Cron "The Relationship Between Computerization and Performance: A Strategy for Maximizing the Economic Benefits of Computerization" Information and Management (1983) 10.1016/0378-7206(83)90034-4

[33]

Cronin "Using the Web to Push Key Data to Decision Makers" Fortune (1997)

[34]

Davenport (1993)

[35]

Davenport, T. H. “Teltech: The Business of Knowledge Management Case Study,” available at https://knowman.bus.utexas.edu/Pubs/telcase.htm, 1996.

[36]

Davis "Diversification, Vertical Integration, and Industry Analysis: New Perspectives and Measurement" Strategic Management Journal (1992) 10.1002/smj.4250130704

[37]

Denis "Managerial Discretion, Organization Structure, and Corporate Performance: A Study of Leveraged Capitalizations" Journal of Accounting and Economics (1993) 10.1016/0165-4101(93)90011-4

[38]

Asset Stock Accumulation and Sustainability of Competitive Advantage

Ingemar Dierickx, Karel Cool

Management Science 1989 10.1287/mnsc.35.12.1504

[39]

Dodgson "Organizational Learning: A Review of Some Literatures" Organization Studies (1993) 10.1177/017084069301400303

[40]

Santos "The Impact of Information Technology Investment Announcements on the Market Value of the Firm" Information Systems Research (1993) 10.1287/isre.4.1.1

[41]

Duncan "Capturing Flexibility of Information Technology Infrastructure: A Study of Resource Characteristics and Their Measure" Journal of Management Information Systems (1995) 10.1080/07421222.1995.11518080

[42]

Elsbach "Members’ Responses to Organizational Identity Threats: Encountering and Countering the Business Week Rankings" Administrative Science Quarterly (1996) 10.2307/2393938

[43]

Feeny "Core IS Capabilities for Exploiting Information Technology" Sloan Management Review (1998)

[44]

Grabowski "Linking Information Systems Application Portfolios and Organizational Strategy" (1993)

[45]

Grant (1995)

[46]

Grant "The Resource-based Theory of Competitive Advantage" California Management Review (1991) 10.2307/41166664

[47]

Grantham (1993)

[48]

Grinyer "Planning for Existing Markets: Perceptions of Executives and Financial Performance" Journal of Royal Statistical Society (1975)

[49]

Hammer (1993)

[50]

Hawkins "The Corporation FEDEX: Europe Nearly Killed the Messenger" Business Week (1992)

Showing 50 of 125 references

Cited By

3,046

Beyond the hype: Organisational adoption of Generative AI through the lens of the TOE framework–A mixed methods perspective

Laurie Hughes, Fern Davies · 2026

International Journal of Informatio...

Determinant factors of government change capability towards smart cities: A dynamic capability perspective

Ian Firstian Aldhi, Badri Munir Sukoco · 2026

Journal of Cleaner Production

Artificial intelligence as a merger and acquisition catalyst: A resource-based view

Dewen Liu, Ying Zou · 2026

International Review of Financial A...

Data Analytics, Decision-Making Process and Business Performance: A Bibliometric Analysis

Alexandra Radu, Mihaela Herciu · 2025

Studies in Business and Economics

The role of digitalization in early internationalization Research: A systematic literature review and future research directions

Emmanuel Kusi Appiah, Peter Gabrielsson · 2025

Journal of Business Research

The Impact of State-Owned Capital Participation on Carbon Emission Reduction in Private Enterprises: Evidence from China

Runsen Yuan, Yan Li · 2025

Sustainability

Cost efficiency of commercial banks in Ethiopia: Does financial technology matter?

Tarekegn Tariku Ebissa, Deresse Mersha Lakew · 2025

PLoS ONE

Exploring the Impact of AI Capabilities on Employee Well-Being: A Mediated Moderation Analysis

Munaza Bibi, Tse Guan Tan · 2025

Sage Open

Deepening big data sustainable value creation: insights using IPMA, NCA, and cIPMA

Randy Riggs, Carmen M. Felipe · 2024

Journal of Marketing Analytics

Artificial intelligence capability and organizational performance: unraveling the mediating mechanisms of decision-making processes

Suheil Neiroukh, Okechukwu Lawrence Emeagwali · 2024

Management Decision

Big data analytics capabilities and leadership: catalysts of firm performance in telecommunications

Hira Shafqat, Baojian Zhang · 2024

Business Process Management Journal

Organizational capabilities for digital innovation: a systematic literature review

Mohsen Motamedimoghadam, Miguel Mira da Silva · 2024

European Journal of Innovation Mana...

Drivers of Digital Transformation in SMEs

Nessrine Omrani, Nada Rejeb · 2024

IEEE Transactions on Engineering Ma...

Integrating artificial intelligence and human resource management: a review and future research agenda

Qinyan Gong, Di Fan · 2024

The International Journal of Human...

Examining the impact of artificial intelligence capability on dynamic capabilities, organizational creativity and organization performance in public organizations

Hamad Mohamed Almheiri, Syed Zamberi Ahmad · 2024

Journal of Systems and Information...

Technology Infrastructure and Business Performance of Commercial Banks in Kenya

Jeremiah Mugambi Ananga, Samson Nyang’au Paul · 2024

International Journal of Innovative...

The Over-Concentration of Innovation and Firm-Specific Knowledge in the Artificial Intelligence Industry

Pedro Jácome de Moura, Carlos Denner dos Santos Junior · 2024

Journal of the Knowledge Economy

Digitalization the necessary evil: integrating digital technologies in businesses of BOP countries

Ewuradjoa Quansah · 2024

Information Technology for Developm...

Information and communication technology in SMEs: a systematic literature review

Tri Yuwono, Agus Suroso · 2024

Journal of Innovation and Entrepren...

Towards Adoption of Generative AI in Organizational Settings

Kalyan Prasad Agrawal · 2023

Journal of Computer Information Sys...

Metrics

3,046

Citations

125

References

Details

Published: Mar 01, 2000
Vol/Issue: 24(1)
Pages: 169-196

Authors

A

Anandhi Bharadwaj

Goizueta Business School, Emory University, Atlanta, GA 30322, U.S.A.

Cite This Article

Anandhi Bharadwaj (2000). A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation1. MIS Quarterly, 24(1), 169-196. https://doi.org/10.2307/3250983

A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation1

You May Also Like