The Construction of Firm's IT Capability and Its Impact on IT Assimilation: An Empirical Investigation in China

The paper’s research purpose is to discuss the key firm-specific IT capability and its impact on the business value of IT. In the context of IT application in China, the paper builds research model based on Resource-Based View, this model describes how the partnership between business and IT management partially mediates the effects of IT infrastructure capability and managerial IT skills on the organization-level of IT assimilation(as proxy for business value of IT ). This research releases 105 questionnaires to part-time MBA in the Renmin University of China and gets 70 valid questionnaires, then analyzed the measurement and structural research model by PLS method. The result of the structural model shows the investment in infrastructure capability and managerial IT skills should be transformed into the partnership between IT and business, and then influence the IT assimilation. The paper can give suggestions to the firms about how to identify and improve IT capability, which will help organization to get superior business value from IT investment.

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