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Systemic capabilities: the source of IT business value

Cao, Guangming, Duan, Yangding, Cadden, Trevor and minocha, sonal (2015) Systemic capabilities: the source of IT business value. Information Technology & People, 29 (3). pp. 556-579. [Journal article]

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DOI: 10.1108/ITP-05-2014-0090

Abstract

Purpose – The purpose of this paper is to develop, and explicate the significance of the need for asystemic conceptual framework for understanding IT business value.Design/methodology/approach – Embracing a systems perspective, this paper examines theinterrelationship between IT and other organisational factors at the organisational level and its impact on the business value of IT. As a result, a systemic conceptual framework for understandingIT business value is developed. An example of enhancing IT business value through developingsystemic capabilities is then used to test and demonstrate the value of this framework.Findings – The findings suggest that IT business value would be significantly enhanced whensystemic capabilities are generated from the synergistic interrelations among IT and otherorganisational factors at the systems level, while the system’s human agents play a critical role indeveloping systemic capabilities by purposely configuring and reconfiguring organisational factors.Practical implications – The conceptual framework advanced provides the means to recognise thesignificance of the need for understanding IT business value systemically and dynamically.It encourages an organisation to focus on developing systemic capabilities by ensuring that IT andother organisational factors work together as a synergistic whole, better managing the role its human agents play in shaping the systems interrelations, and developing and redeveloping systemic capabilities by configuring its subsystems purposely with the changing business environment.Originality/value – This paper reveals the nature of systemic capabilities underpinned by a systemsperspective. The resultant systemic conceptual framework for understanding IT business value canhelp us move away from pairwise resource complementarity to focusing on the whole system and its interrelations while responding to the changing business environment. It is hoped that the framework can help organisations delineate important IT investment considerations and the priorities that they must adopt to create superior IT business value.

Item Type:Journal article
Keywords:IT capability, IT business alignment/value, Information system effectiveness, Dynamic capabilities/relationships/perspective
Faculties and Schools:Ulster Business School > Department of Management and Leadership
Ulster Business School
Research Institutes and Groups:Business and Management Research Institute
ID Code:37244
Deposited By: Dr Trevor Cadden
Deposited On:29 Mar 2017 08:51
Last Modified:17 Oct 2017 16:28

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