Recent Development on Information System Capabilities and Sustainable Competitive Advantages: A Research Model, Review and Directions for Future Research
Keywords:
Information system capabilities; bureaucracy; sustainable competitive advantage; dynamic capabilities.
Abstract
In today's competitive environment, maintaining a competitive advantage to achieve high performance is a significant challenge for businesses. To succeed, organizations must not only develop competencies in their focus areas but also be able to adapt, change, and realign those competencies in a dynamic and competitive corporate environment. As a result, information system (IS) capabilities are growing in significance as a strategic element that supports the development of competitive advantages and organizational survival. By examining the gap from the prior research, this study intends to answer questions about the link between information system (IS) related capabilities and the sustainable competitive advantages of an organization. The dimensions of information system capabilities (Personnel capability, Administrative capability, Infrastructure capability, and Information management capability) are factors that could explain a firm's sustainable competitive advantage and the theory of dynamic capability is used as the guiding theory, as guidance, and to support the conceptual framework. This will clarify how firms may use their resources and capabilities to boost the effectiveness and utilization of information systems (IS) in daily operations, processes, and people's performance.
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References
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Argyropoulou, M. (2013). Information Systems’ Effectiveness and Organisational Performance. Brunel Business School, Brunel University.
Arumugam, G. S., Guptan, V., & Shanmugam, B. (2011). Market orientation in a GLC: Evidence from Malaysia. Problems and Perspectives in Management, 9(2), 51–62.
Aydiner, A. S. (2017). Linking Information System Capabilities with Firm Performance. International Journal of Research in Business and Social Science (2147-4478), 6(1), 55–64. https://doi.org/10.20525/ijrbs.v6i1.656
Aydiner, A. S., Tatoglu, E., Bayraktar, E., & Zaim, S. (2019). Information system capabilities and firm performance: Opening the black box through decision-making performance and business-process performance. International Journal of Information Management, 47(July), 168–182. https://doi.org/10.1016/j.ijinfomgt.2018.12.015
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Barney, J.B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120.
Battleson, D. A., West, B. C., Kim, J., Ramesh, B., & Robinson, P. S. (2016): Achieving dynamic capabilities with cloud computing: an empirical investigation. European Journal of Information Systems, 25(3), pp. 209–230.
Bharadwaj, A. S. (2000). A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS Quarterly, 24(1), 169–196.
Brinkhues, R. A., Carlos, A., & Maçada, G. (2015). Information Management Capability as a Source of Sustained Competitive Advantage. In Emergent Research Forum Papers.
Carmichael, F., Palacios-Marques, D., & Gil-Pechuan, I. (2011). How to create information management capabilities through Web 2.0. Service Industries Journal, 31(10), 1613–1625. https://doi.org/10.1080/02642069.2010.485635
Cepeda-Carrion, G., Cegarra-Navarro, J. G., & Jimenez-Jimenez, D. (2012). The effect of absorptive capacity on innovativeness: Context and information systems capability as catalysts. British Journal of Management, 23(1), 110–129.
Chen, H., Chiang, R. H. L., & Storey, V. C. (2012). Business Intelligence and Analytics: From Big Data to Big Impact. MIS Quarterly, 36, 1165-1188.
Chen, S. S., Shyu, J. Z., & Tzeng, G. H. (2020). The Relationship among Information System Infrastructure Capability, Interorganizational Coordination, and Supply Chain Integration: An Empirical Study. Sustainability, 12(24), 10513.
Clemons, E. K., & Row, M. C. (1991). Sustaining IT Advantage: The Role of Structural Differences. MIS Quarterly, 15(3), 275-292. doi:10.2307/249639
Damarin, A. (2015) Sociology of bureaucracy. International Encyclopaedia of the Social & Behavioral Sciences. (2nd ed.) p. 913–918.
Devece, C., Palacios, D., & Martinez-Simarro, D. (2017). Effect of information management capability on organizational performance. Service Business, 11(3), 563–580. https://doi.org/10.1007/s11628-016-0320-7
Eisenhardt, K. M., & Martin J. A. (2000). Dynamic Capabilities: What Are They? Strategic management journal, 21(10/11), pp. 1105–1121. DOI: 10.1002/1097- 0266(200010/11)21:10/11<1105: AID-SMJ133>3.0.CO; 2-E.
Garrison, G., Wakefield, R. L., & Kim, S. (2015). The effects of IT capabilities and delivery model on cloud computing success and firm performance for cloud-supported pro- cesses and operations. International Journal of Information Management, 35(4), 377–393.
Ghobakhloo, M., Azar, A., & Esmaeilian, P. (2020). The Impact of Information System Administrative Capability on Innovation Performance in SMEs. Journal of Knowledge Management, 24(4), 899-915.
Goh, C. F., Leong, L. Y., & Tan, C. W. (2021). The Role of Information System Governance in Explaining the Relationship between IT Capability and Organizational Performance. Information & Management, 58(1), 103373.
Grover, V., & Lyytinen, K. (2015). New state of play in information systems research: The push to the edges. MIS Quarterly, 39(2), 271–A5.
Gu, J. W., & Jung, H. W. (2013). The effects of IS resources, capabilities, and qualities on organizational performance: An integrated approach. Information & Management, 50(2-3), 87–97.
Harun Jasin, Saud, M. B., Isa, M. A. M., & Hussain, F. (2016). Facilities and bureaucratic processes of Malaysian local authorities influenced micro-enterprises business performance. International Journal of Business, Economics and Law, 10(2), 14–20.
Haryono, E., & Khalil, S. (2011). An Examination of Government Bureaucracy in Facilitating Business: Comparing Malaysia with Indonesia. Journal of Governance and Development, 7(June), 58–71.
Hausmann, V., Williams, S. P., Hardy, C. A., & Schubert, P. (2014). Enterprise Information Management Readiness: A survey of current issues, challenges and strategy. Procedia Technology, 16, pp. 42–51.
Hazzaa, H. M. A. M. B. (2018). The impact of enterprise information management capability on sustainable competitive advantage. Retrieved from https://scholarworks.uaeu.ac.ae/business_dissertations
Ho, C. Y., Kuo, Y. M., & Chiu, C. C. (2021). The Effect of Information System Infrastructure Capability on Organizational Performance: The Mediating Role of Information Quality. Information & Management, 58(1), 103353.
Huang, X., & Li, Y. (2021). The Effect of Information Management Capability on Supply Chain Management Performance: An Empirical Study. Sustainability, 13(5), 2742.
Isa, M., & Lee, S. (2016). The Performance of Government-Linked Companies in Malaysia. Capital Markets Review, 24(2), 1–13.
Jacobsen, C. B., & Jakobsen, M. L. (2018). Perceived organizational red tape and organizational performance in public services. Public Administration Review, 78(1), 24–36
Kadir, M. R. A., Abidin, Z. Z., Ramli, A. R., & Surbaini, K. N. (2014). Factors Influencing a Business Towards Zakat Payment in Malaysia. International Journal of Science Commerce and Humanities, 2(3), 147–156.
Kathuria, A., Saldanha, T. J. V., Khuntia, J., & Rojas, M. G. A. (2016). How information management capability affects innovation capability and firm performance under turbulence: Evidence from India. 2016 International Conference on Information Systems, ICIS 2016, 1–21.
Kaufmann, W., Taggart, G., & Bozeman, B. (2019). Administrative Delay, Red Tape, and Organizational Performance. Public Performance and Management Review, 42(3), 529–553. https://doi.org/10.1080/15309576.2018.1474770
Khoo, E. S. . (2018). the Impact of the Government-Linked Companies Transformation Program ( GLCTP ) on the Performances of Government-Linked Companies ( GLCs ) in Malaysia, (2006), 1–16.
Kim, K. J., & Kim, Y. J. (2020). Information Management Capability as a Key to Competitive Advantage: A Resource-Based View. Sustainability, 12(21), 9018.
Kim, S., Paik, W., & Lee, C. (2014). Does bureaucracy facilitate the effect of information technology (IT)? International Review of Public Administration, 19(3), 219–237. https://doi.org/10.1080/12294659.2014.942050
Kim, Y. J., Kim, S., & Kim, D. J. (2021). Impact of Information System Infrastructure Capability on Organizational Agility and its Performance. Information & Management, 58(1), 103349.
Kowalski, P, M., Büge, M., Sztajerowska., & Egeland, M. (2013). State-Owned Enterprises: Trade Effects and Policy Implications. OECD Trade Policy Paper, 147, Paris: OECD.
Kruja, A. D., & Kamber, X. (2020). Using Information Systems as a Competitive Advantage Tool. XIV. IBANESS Congress Series on Economics, Business and Management.
Lee, S. M., Lim, S., & Lee, H. (2020). The Effects of Information System Personnel Capability on Organizational Performance: The Mediating Role of Information Quality. Sustainability, 12(9), 3581.
Li, L., Li, X., & Fang, Y. (2021). The Impact of Information System Personnel Capability on Organizational Agility: Evidence from Chinese High-tech Firms. Sustainability, 13(1), 353.
Lim, J. H., Stratopoulos, T. C., & Wirjanto, T. S. (2011). Path Dependence of Dynamic Information Technology Capability: An Empirical Investigation. Journal of management information systems, 28(3), pp. 45–84. DOI: 10.2753/MIS0742- 1222280302.
Mackenzie SS, Podsakoff PM, Podsakoff NP (2011) Construct measurement and validation procedures in MIS and behavioral research: integrating new and existing techniques. MIS Quarterly, 35(2):293–334
Malhotra, N. K. (2007). Marketing research: an applied orientation (5th Ed.). New York: Prentice Hall Inc.
Mata, F. J., Fuerst, W. L., & Barney, J. B. (1995). Information Technology and Sustained Competitive Advantage: A Resource-Based Analysis. MIS Quarterly, 19(4), 487-505. doi:10.2307/249630
Menon, J. (2014). Malaysia's Investment Malaise: What Happened and Can It be Fixed. Journal of the Asia Pacific Economy, 19(2), 247-71.
Mithas, S., Ramasubbu, N., & Sambamurthy, V. (2011). How Information Management Capability Influences Firm Performance. MIS Quarterly, 35, 237-256.
Nguyen, T., & Nguyen, T. (2021). The impact of information systems capability on firm performance: A resource-based perspective. Journal of Business Research, 124, 290-301. https://doi.org/10.1016/j.jbusres.2020.10.032
Nik Herda Nik Abdullah. (2019). Gaining competitive advantage through new product development capability in Malaysian Government Linked Companies. Indonesian Journal of Economics, social, and Humanities, 1(1), 37-49.https://doi.org/10.31258/ijesh.1.1.4
Olszak, C. M. (2014). Dynamic Business Intelligence and Analytical Capabilities in Organizations. Proceedings of the e-Skills for Knowledge Production and Innovation Conference 2014, Cape Town, South Africa, pp. 289-303. Retrieved from http://proceedings.e-skillsconference.org/2014/e-skills289- 303Olszak718.pdf
PCG (2015). GLC Transformation Program Graduation Report. Retrieved from http://www.pcg.gov.my/PDF/GLCTP%20Vol%201%20Graduation%20Report.pdf on May 2015
Powell, T. C., & Dent-Micallef, A. (1997). Information technology as competitive advantage: the role of human, business, and technology resources. Strategic Management Journal, 18(5), 375-405.
Pulic, A. 2008. The principles of intellectual capital efficiency: a brief description. Zagreb: [email protected].
Qian, Y., Zhou, C., & Liu, Y. (2021). The Relationship between Information Management Capability and Organizational Innovation Performance: Evidence from Chinese High-Tech Firms. Journal of Business Research, 129, 84-94.
Ross, J.W., Beath, C.M., & Goodhue, D.L. (1996). Develop long-term competitiveness through IT assets. Sloan Management Review, 38 (1), pp. 31–42.
Said, J., & Jaafar, N. H. B. (2014). Accountability in Government Linked Companies: An Empirical Finding. Procedia - Social and Behavioral Sciences, 145, 294–299. https://doi.org/10.1016/j.sbspro.2014.06.037
Taouab, O., & Issor, Z. (2019). Firm Performance: Definition and Measurement Models. European Scientific Journal ESJ, 15(1), 93–106. https://doi.org/10.19044/esj.2019.v15n1p93
Tashtoush, L. (2021). The Role of Information Systems Capabilities in Enhancing the Organizational Performance. Journal of Information Systems and Informatics, 3(2), 303–328. https://doi.org/10.33557/journalisi.v3i2.129
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and micro-foundations of (sustainable) enterprise performance. Strategic management journal, 28(13), pp. 1319–1350. DOI: 10.1002/smj.640
Teece, D. J., Pisano, G., & Shuen, A. (1997): Dynamic Capabilities and Strategic Management. Strategic management journal, 18(7), pp. 509–533. DOI: 10.1002/ (SICI) 1097-0266(199708)18:7<509: AID-SMJ882>3.0.CO; 2-Z
Teece, D.J. (1982). Towards an economic theory of the multi-product firm. Journal of Economic Behavior and Organization, 3, 39–63.
The Putrajaya Committee GLC High Performance (PCG). (2014). GLCs delivering high performance and catalyze inclusive growth.
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Published
2023-06-11
How to Cite
Mohd Jawi, A. I. H., Abdullah, M., & Ellen Chung, C. S. M. (2023). Recent Development on Information System Capabilities and Sustainable Competitive Advantages: A Research Model, Review and Directions for Future Research. Information Management and Business Review, 15(2(I)SI), 44-56. https://doi.org/10.22610/imbr.v15i2(I)SI.3420
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Research Paper
Copyright (c) 2023 Abdul Ismail Hj Mohd Jawi, Malvern Abdullah, Chung Siew Mee Ellen Chung
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