The Development of the DDG-Capability in Firms: An Evaluation of Its Impact on Firm Financial Performance

  • Elisabetta Raguseo
  • Claudio Vitari
Conference paper
Part of the Lecture Notes in Information Systems and Organisation book series (LNISO, volume 7)


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 performance.


Digital data genesis Dynamic capabilities Firm financial performance 


  1. 1.
    Peteraf, M.A., Di Stefano, G., Verona, G.: The elephant in the room of dynamic capabilities: bringing two diverging conversations together. Strateg. Manage. J. (2013) (In press)Google Scholar
  2. 2.
    Drnevich, P.L., Kriauciunas, A.P.: Clarifying the conditions and limits of the contributions of ordinary and dynamic capabilities to relative firm performance. Strateg. Manag. J. 32, 254–279 (2011)CrossRefGoogle Scholar
  3. 3.
    Kohli, R., Grover, V.: Business value of IT: an essay on expanding research directions to keep up with the times. J. Assoc. Inf. Syst. 9, 23–39 (2008)Google Scholar
  4. 4.
    Mithas, S., Ramasubbu, N., Sambamurthy, V.: How information management capability influences firm performance. MIS Q. 35, 237–256 (2011)Google Scholar
  5. 5.
    Piccoli, G., Watson, R.T.: profit from customer data by identifying strategic opportunities and adopting the born digital approach. MIS Quart. Executive 7, 113–122 (2008)Google Scholar
  6. 6.
    Eisenhardt, K.M., Martin, J.A.M.: Dynamic capabilities: what are they? Strateg. Manag. J. 21, 1105–1121 (2000)CrossRefGoogle Scholar
  7. 7.
    Teece, D.J., Pisano, G., Shuen, A.: Dynamic capabilities and strategic management. Strateg. Manag. J. 18, 509–533 (1997)CrossRefGoogle Scholar
  8. 8.
    Sambamurthy, V., Bharadwaj, A., Grover, V.: Shaping agility through digital options: reconceptualizing the role of information technology in contemporary firms. MIS Q. 27, 237–263 (2003)Google Scholar
  9. 9.
    Banker, R.D., Bardhan, I.R., Hsihui, C., Shu, L.: Plant information systems, manufacturing capabilities, and plant performance. MIS Q. 30, 315–337 (2006)Google Scholar
  10. 10.
    Pavlou, P.A., El Sawy, O.A.: From IT leveraging competence to competitive advantage in turbulent environments: the case of new product development. Inf. Syst. Res. 17, 198–227 (2006)CrossRefGoogle Scholar
  11. 11.
    Dosi, G., Nelson, R., Winter, S.: Introduction: the nature and dynamics of organizational capabilities. In nature and dynamics of organizational capabilities. Oxford University Press, New York (2000)Google Scholar
  12. 12.
    Tallon, P.P.: Inside the adaptive enterprise: an information technology capabilities perspective on business process agility. Inf. Technol. Manage. 9, 21–36 (2008)CrossRefGoogle Scholar
  13. 13.
    Zou, S., Fang, E., Zhao, S.: The effect of export marketing capabilities on export performance: an investigation of Chinese exporters. J. Int. Mark. 11, 32–55 (2003)CrossRefGoogle Scholar
  14. 14.
    Williams, M.L.: Identifying the Organizational Routines in NEBIC Theory’s Choosing Capability. HICCS, Hawaii (2003)Google Scholar
  15. 15.
    Marchand, D.A., Kettinger, W.J., Rollins, J.D.: Information Orientation: The Link to Business Performance. Oxford University Press, New York (2002)CrossRefGoogle Scholar
  16. 16.
    Qian, G., Li, L.: Profitability of small-and medium-sized enterprises in high-tech industries: the case of the biotechnology industry. Strateg. Manag. J. 24, 881–887 (2003)CrossRefGoogle Scholar

Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  1. 1.Politecnico di TorinoTurinItaly
  2. 2.Grenoble Ecole de ManagementGrenobleFrance

Personalised recommendations