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.
