Information technology capability and firm performance: the role of strategic orientation

Abstract

A key strand of IT business value research is concerned with the measurement of IT capability of firms and the impact of IT capability on the accounting-based measures of firm performance. Previous empirical studies examining this relationship in the context of developed economies have reported mixed results, and there is a dearth of studies in the context of emerging economies. In this study, we seek to employ archival data from the emerging economy context of India, and replicate the findings from the earlier studies, in order to examine the existing theory. We also propose to extend the existing theory by incorporating the role of strategic orientation (indicated by the Miles and Snow strategy types) of the firms while examining the impact of IT capability on firm performance. Thus, the results of this study offer possibilities of both theoretical and practical implications.