Modeling Information Technology Value

Modeling Information Technology Value

Author		: LUKMAN ABDURRAHMAN; Suhardi; Armein Z.R. Langi
Published on	: The 1st International Seminar & Conference on Learning Organization Proceedings (Bandung)

Abstract

“This paper offers a comprehensive study to research the relationship between IT and business performance. According to Resource-Based View (RBV) theory, the study explores parts of resource and business performance based on 24 studied papers using meta-analysis methodology. In order to understand IT value within business, the study breaks down IT value into resource, capability, competence, and competitive advantage component. The well-managed resources will result in capabilities. Furthermore, the capability will embody as a core firm competence. The competence leads to achieve more market share because of improvement of its competitive advantage. Previously, the researchers have highlighted the study directly between resources to competitive advantage or resources to capabilities then to competitive advantage. However, this study has not yet formulated details of factors/parameters of those components. Also, the limitation of the meta-analysis is that results are based on prior research conducted on different sources at different times, in turn, it may cause study biases. Moreover, the model might be an urgent requirement of industries because they will take care of IT investment to obtain a normal return in terms of the spent investment.”