Article ID: | iaor200926518 |
Country: | United States |
Volume: | 17 |
Issue: | 3 |
Start Page Number: | 198 |
End Page Number: | 227 |
Publication Date: | Sep 2006 |
Journal: | Information Systems Research |
Authors: | Pavlou Paul A, El Sawy Omar A |
Keywords: | computers: information |
A burning question for information systems (IS) researchers and practitioners is whether and how IT can build a competitive advantage in turbulent environments. To address this question, this study focuses on the business process level of analysis and introduces the construct of IT leveraging competence—the ability to effectively use IT functionalities. This construct is conceptualized in the context of new product development (NPD). IT leveraging competence is shown to indirectly influence competitive advantage in NPD through two key mediating links: functional competencies (the ability to effectively execute operational NPD processes) and dynamic capabilities (the ability to reconfigure functional competencies to address turbulent environments). Environmental turbulence is also shown to moderate the process by which IT leveraging competence influences competitive advantage in NPD. Empirical data were collected from 180 NPD managers.