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Exploring Information Technology Capabilities from Multiple Aspects of the Resource-Based Theory

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Abstract

This study elucidates the nature of information technology (IT) capabilities by developing an integrated framework that expounds upon the hierarchy inherent within IT capabilities. This research uses qualitative interviews with 64 IT professionals grounded in the resource-based theory to delineate three layers of IT capabilities. At the foundational level, IT capabilities reflect firms’ IT-related assets, encompassing IT infrastructure, informational, and enabled assets that are valuable, rare, and inimitable. Higher up, firms’ IT capabilities manifest through competence in organising these IT-related assets effectively. Operational IT competence is instrumental in mobilising and deploying each IT-related asset, while dynamic IT capabilities represent firms’ capacity to reconfigure and assimilate various operational IT competencies. This research contributes to the field by providing an integrative theoretical understanding of how IT capabilities are formed. The proposed model addresses fragmentation in the existing literature, facilitating the development of more cohesive, evidence-based strategies for generating business value from IT.

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Acknowledgements

We attest that this manuscript has not been published or presented elsewhere in part or in entirety, and is not under consideration by another journal. All the authors have approved the manuscript and agree with submission to Information Systems Frontiers.

Funding

The study was not funded.

Author information

Authors and Affiliations

  1. Southampton Business School, University of Southampton Highfield, Southampton, SO17 1BJ, UK

    Cheng-Hao Steve Chen

  2. The Open University Business School, Milton Keynes, PO Box 197, Milton Keynes, MK7 6BJ, UK

    Gordon Liu

  3. The Business School Executive Business Centre, Bournemouth University, 89 Holdenhurst Road, Bournemouth, BH8 8EB, UK

    Gelareh Roushan

  4. Department of Entrepreneurship and Relationship Management, University of Southern Denmark, Universitetsparken 1, Kolding, 6000, Denmark

    Bang Nguyen

Authors
  1. Cheng-Hao Steve Chen
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  2. Gordon Liu
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  3. Gelareh Roushan
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  4. Bang Nguyen
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Contributions

The study’s conceptual idea was developed by Prof. Steve Chen. The data were collected by Prof. Steve Chen. The writing and editing of the paper were equally divided and completed by Prof. Steve Chen, Prof. Gordon Liu, Prof. Gelareh Roushan, and Prof. Bang Nguyen.

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Correspondence to Bang Nguyen.

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Appendices

Appendix 1 Informants

Industry

Job Title

Job Functions

IT Sector

Application Manager

Research and development

Engineering

Research and development

HR Manager

Staff recruitment

Information Manager

Date management

IT Consultancy

IT service advisory

IT Manager

Research and development

IT Officer

Developing software product

IT Specialist

Data management

IT Technician

Solving IT-related challenges

Managing Director

Overseeing all European operations

Marketing Manager

Sales and services

Marketing Manager

Sales and marketing

Product Manager

New Product development

Product Manager

Research and Development

Service Executive

Overseeing IT service delivery

Service Manager

Problem solving and client solutions

Service Manager

Client consultancy

Software Developer

Customisation software for clients

System Manager

System maintenances

Technical Architect

Research and development

IT Manager

IT service management

Retail Sector

CEO

Managing the company

Chief Information Officer

IT infrastructure development

Head Manager

Marketing strategy design

Head of IT

IT strategy management

Information Officer

Data management

IT Manager

System maintenances

IT Manager

Online system operation

Managing Director

Overseeing business operation

Marketing Manager

Advertising

Marketing Manager

Client management

Marketing Manager

Supply chain management

Marketing Manager

Advertising and customer service

Service Manager

Customer service management

Learning solution specialist

IT product and service development

Financial Sector

Associate Director

Oversee business operation

Consultant

Online Financial advise

Consultant

Financial analysis

Director

Overseeing business operation

Financial Analysis

Financial market analysis

Head of IT

IT and e-commerce strategy

Information Manager

Data management

IT Manager

System maintenances

IT Manager

Website service maintenance

Marketing Manager

Customer relationship management

Service Engineer

Online service maintenances

Service Manager

Customer service management

Supervisor

Overseeing relationship management operation

Head of IT

Operation consultancy

Information Officer

Data analysis

Consultant

Financial investment

Service Sector

IT Architect

Online system maintenance

IT Consultant

Online system development

IT Manager

Service system development

IT Manager

Online product testing

IT Manager

IT system maintenances

Marketing Manager

Product development

Marketing Manager

Customer relations

Service Manager

Relationship management

Assistant IT director

Developing and maintaining University IT system

Academic Researchers

Deputy Head of Department

Delivery university lecture and IT consultancy

Head of Department

Delivery university lecturer

Lecturer

Delivery university lecturer

Senior Lecturer

Delivery university lecturer

Appendix 2 Interview questions

Stages

Sample Questions

1

• Could you give an introduction to your background and experience in relation to IT?

• Could you give an introduction about your involvement in IT-related projects?

• What are your managerial role and responsibilities in your company related to IT?*

2

• What does IT capability mean, at a personal and organisational level?

• What is the IT requirement in your organisation to achieve IT capability at a higher level?

• What kinds of business operations do IT-oriented companies perform?

• Which organisational factors might encourage or discourage the level of IT capability?

• How would you measure IT capability in the organisation?

• How does IT create business opportunities for your organisation?

• Has your organisation’s IT capability evaluation changed in the past and will it change again in the future?

  1. * This question was not posed to the four academic informants

Appendix 3 Data analysis and codes

RBT Resource Classification

Coding Focus

Codes Example

IT-Related Assets

The respondents’ commentary regarding their considerations when assessing the types of tangible and intangible IT-related resources possessed by the company

Equipment; Software; Information access via IT; Networks; Communication via IT; IT support; IT-business synergy; IT investment; etc

Operational IT Competence

The responses provided by the participants concerning their perspectives on evaluating the operational processes facilitating the mobilisation and deployment of firms’ assets related to IT

Operation manual, Guidelines, Processes, Work procedures, Protocols, etc

The responses provided by the participants concerning their perspectives on evaluating the knowledge and skills facilitating the mobilisation and deployment of firms’ assets related to IT

Knowledge; Skills; Expertise, How-to; Know-how; Understanding; Idea; etc

The responses provided by the participants concerning their perspectives on evaluating the organisational culture facilitating the mobilisation and deployment of firms’ assets related to IT

Norms; Culture; Rules, Environment; Climate; General agreements; Shared value, Shared beliefs, etc

Dynamic IT Capabilities

The respondents articulated their perspectives on the firms’ capacity to cultivate new competence through the assimilation of existing competence. This process enables the firms to effectively mobilise and deploy assets associated with IT

Planning; Learning, Adaptive; Environment scan; Responsiveness; Resilience, Developing, Design, Create; Combine; Integrate; Modify; Realignment; Strategic change, etc

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Chen, CH.S., Liu, G., Roushan, G. et al. Exploring Information Technology Capabilities from Multiple Aspects of the Resource-Based Theory. Inf Syst Front (2024). https://doi.org/10.1007/s10796-024-10490-1

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