The Effect of Transformative IT Capability on SUstainable Competitive Advantage
The Effect of Transformative IT Capability on SUstainable Competitive Advantage
Author : TEGUH WIDODO Published on : ICoICT
Abstract
“This research recalls the resource base view of the firm theory that argues that return above the average is not only determined by the external factors but it is also determined by internal factors. In order to escape from the trap of talking at lower order of IT Capability, this study pay attention on corporate level strategy. At this level of analysis, IT is not considered as operational tools only, further, IT is positioned as an strategic internal capability that is enable to drive organization transformation process in response to the changes of the organization actual context.
It???s an alternatives argument in describing the relationship between IT capability and sustainable competitive advantage, in stead of the controversy opinions which is often found in literature. In the other side, authors argue that the IT capability impacts on competitive advantage because these capability helps organizations to innovate, and those are able to create uniqueness. The other authors opposite that IT capability has no effect on the competitive advantage due the fact that IT investment are easily duplicated by competitors.
With triple-loop learning approach, IT capabilities are then analyzed and classified into tree levels of capabilities to find a capability which has close relation to sustainable competitive advantage. The grand theoretical model and the empirical evidence provide an important foundation to develop a comprehensive theory for formulating the role of IT capability on organizational innovativeness leads to sustainable competitive advantage.
This basic research applies a causality model to explain the relationship between IT Capability and organizational innovativeness impacts on competitive advantage. All of those latent variables are revealed through a set of indicator variables that can be measured through a survey. Data sample are collected from 210 Telkom???s managers who were responsible in achieving business targets, and analyzed using SEM Lisrel statistic software.”
