Developing and Validating a Measurement Instrument of IT-Enabled Dynamic Capabilities

A growing body of information systems studies are examining the organizational impact of IT in terms of IT capabilities. Yet, despite more than a decade since the original conception of IT capabilities which largely builds on the Resource-Based View (RBV) of the firm, the manner in which the notion is conceptualized and measured provides an increasingly limited understanding of how IT investments are leveraged to add value. This study builds on the Dynamic Capabilities View (DCV) of the firm which places emphasis on a firm’s ability to react adequately and timely to external changes, and puts forth the notion of IT-enabled dynamic capabilities. IT-enabled dynamic capabilities are defined as a firm’s abilities to leverage its IT resources and IT competencies, in combination with other organizational resources and capabilities, in order to address rapidly changing business environments. The purpose of this study is to better define the notion of IT-enabled dynamic capabilities and develop a valid, reliable measurement instrument. In addition to the definition and operationalization of IT-enabled dynamic capabilities, this study explores the relationship of the construct with other measures of IT capabilities as well as the association with competitive performance.

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