Does IT Capability and Competitive Actions Shape Firm Profitability?

dc.contributor.author Choi, Inmyung
dc.contributor.author Cantor, David
dc.contributor.author George, Joey
dc.contributor.department Department of Supply Chain Management
dc.contributor.department Department of Information Systems and Business Analytics
dc.date.accessioned 2025-02-12T20:57:27Z
dc.date.available 2025-02-12T20:57:27Z
dc.date.issued 2017-10-12
dc.description.abstract Research investigating the relationship between information technology (IT) and firm profitability has been a central issue in the information systems (IS) area, and prior studies provided mixed and inconsistent results. To understand the causes of the inconsistent results, we adopted the competitive dynamics theory, which complements and extends other theories such as the resource-based view. This study develops a research model on how IT supports the exercise of competitive actions in the context of rivalry. Specifically, we suggest that IT capability enhances firm profitability by increasing competitive actions of a firm based on 668 firm-year observations in the United States (US). We have found that there is a positive influence of IT on firm performance. The results emphasize the need of considering competitive actions as a key factor to examine the value of IT in developing a firm’s competitiveness.
dc.description.comments This accepted presentation is published as Choi, Inmyung; Cantor, David Edward; and George, Joey, "Does IT Capability and Competitive Actions Shape Firm Profitability?" (2017). ICIS 2017 Proceedings. 5.; https://aisel.aisnet.org/icis2017/Strategy/Presentations/5
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/jrl85p0r
dc.language.iso en
dc.publisher ICIS Proceedings
dc.source.uri https://aisel.aisnet.org/icis2017/Strategy/Presentations/5 *
dc.subject.disciplines DegreeDisciplines::Business::Management Information Systems
dc.subject.disciplines DegreeDisciplines::Business::Operations and Supply Chain Management
dc.title Does IT Capability and Competitive Actions Shape Firm Profitability?
dc.type Presentation
dspace.entity.type Publication
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