Business capabilities: A systematic literature review and a research agenda

The omnipresent need for business transformations, be it digital, agile, or lean, forces organizations to make good choices regarding their optimal business capabilities. Business capabilities provide a link between strategy (the ‘why’) and implementation (the ‘how’). Currently, a comprehensive view on business capabilities is missing. We conducted a systematic literature review on business capabilities. We identified 720 scientific studies, of which 20 were analyzed in-depth. In this review, we investigate how business capabilities are defined, what business capability frameworks are available, and what future research has been suggested for business capability research. From this literature review emerges an extensive analysis on the state of art in business capability research, a new definition for business capabilities, and a potential research agenda for future research.

[1]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .

[2]  Janis L. Gogan,et al.  Aiming at a Moving Target: IT Alignment in Toy Companies , 2010, ECIS.

[3]  Martin Op't Land,et al.  Formalizing Organization Implementation , 2016, EEWC.

[4]  C. Prahalad,et al.  The Core Competence of the Corporation , 1990 .

[5]  Woosang Hwang The Drivers of ERP Implementation and Its Impact on Organizational Capabilities and Performance and Customer Value. , 2011 .

[6]  Matthias Wißotzki An Exploration of Capability Research , 2015, 2015 IEEE 19th International Enterprise Distributed Object Computing Conference.

[7]  S. Winter,et al.  An evolutionary theory of economic change , 1983 .

[8]  Rui Bi,et al.  Information System Capabilities as A Driving Force in Enhancing Organizational Performance: An Empirical Study , 2010, PACIS.

[9]  Philip B. Crosby,et al.  Quality Is Free: The Art of Making Quality Certain , 1979 .

[10]  Roel Wieringa,et al.  Requirements engineering paper classification and evaluation criteria: a proposal and a discussion , 2005, Requirements Engineering.

[11]  Gianmario Motta,et al.  Business Capabilities Centric Enterprise Architecture , 2010, EAI2N.

[12]  Juhani Iivari,et al.  The relationship between organizational culture and the deployment of agile methods , 2011, Inf. Softw. Technol..

[13]  Asher Tishler,et al.  Resources, capabilities, and the performance of industrial firms: A multivariate analysis , 2004 .

[14]  R. Hanneman,et al.  E‐business capabilities model , 2006 .

[15]  Rui Bi An integrative model of E-business capability, dynamic capability, and E-business value for fast growth small-to-medium enterprises , 2012 .

[16]  Kenneth L. Kraemer,et al.  e-Commerce Metrics for Net-Enhanced Organizations: Assessing the Value of e-Commerce to Firm Performance in the Manufacturing Sector , 2002, Inf. Syst. Res..

[17]  Matthias Wißotzki,et al.  A Project Driven Approach for Enhanced Maturity Model Development for EAM Capability Evaluation , 2013, 2013 17th IEEE International Enterprise Distributed Object Computing Conference Workshops.

[18]  D. Kruger,et al.  Business processes capability and performance: A South African perspective , 2012, 2012 Proceedings of PICMET '12: Technology Management for Emerging Technologies.

[19]  J. Spender,et al.  The Resource-Based View: A Review and Assessment of Its Critiques , 2009 .

[20]  Pedro Soto-Acosta,et al.  Analyzing e-business value creation from a resource-based perspective , 2008, Int. J. Inf. Manag..

[21]  R. Lamming,et al.  International purchasing offices in China: roles and resource/capability requirements , 2015 .

[22]  Jürgen Fleischer,et al.  Business Capabilities as configuration elements of value added networks , 2007, Prod. Eng..

[23]  Jason Bennett Thatcher,et al.  Six types of IT-business strategic alignment: an investigation of the constructs and their measurement , 2015, Eur. J. Inf. Syst..

[24]  C. J. Stettina,et al.  Agile portfolio management: An empirical perspective on the practice in use , 2015 .

[25]  J. Barney Firm Resources and Sustained Competitive Advantage , 1991 .

[26]  Sharm Manwani,et al.  Towards a framework for managing IT-enabled change, sourcing and governance , 2014 .

[27]  Mika Helenius,et al.  Connecting Enterprise Architecture with Strategic Planning Processes: Case Study of a Large Nordic Finance Organization , 2015, 2015 IEEE 17th Conference on Business Informatics.

[28]  Jan Tow Lawrence Chu Building and sustaining the sources of competitive advantage in e -commerce capabilities , 2005 .

[29]  Martin Curley,et al.  Using the IT Capability Maturity Framework to Improve IT Capability and Value Creation: An Intel IT Case Study , 2011, 2011 IEEE 15th International Enterprise Distributed Object Computing Conference.

[30]  Matthias Wißotzki,et al.  Evaluation Concept of the Enterprise Architecture Management Capability Navigator , 2014, ICEIS.

[31]  José Luis Borbinha,et al.  Modeling digital preservation capabilities in enterprise architecture , 2011, dg.o '11.

[32]  Kurt Sandkuhl,et al.  Elements and Characteristics of Enterprise Architecture Capabilities , 2015, BIR.

[33]  Carlo Salvato,et al.  Capabilities Unveiled: The Role of Ordinary Activities in the Evolution of Product Development Processes , 2009, Organ. Sci..

[34]  Marlien Herselman,et al.  Conceptual Framework for Modeling Business Capabilities , 2007 .

[35]  Barbara Kitchenham,et al.  Procedures for Performing Systematic Reviews , 2004 .

[36]  Anurag Jain,et al.  TOWARDS A SYSTEMIC VIEW OF ORGANIZATIONAL DYNAMIC IT CAPABILITY: AN EMPIRICAL ASSESSMENT , 2007 .

[37]  A. Saxena,et al.  Impact of Business Flexibility Capabilities on Firm Performance: Es Perspective , 2012 .

[38]  Stefan Henningsson,et al.  Managing the IT Integration of Acquisitions by Multi-Business Organizations , 2011, ICIS.

[39]  Christina W.Y. Wong,et al.  From dynamic capabilities to ERP enabled business improvements: The mediating effect of the implementation project , 2014 .

[40]  D. Teece Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance , 2007 .

[41]  Roger G. Schroeder,et al.  Linking Routines to Operations Capabilities: A New Perspective , 2008 .

[42]  Anandhi S. Bharadwaj,et al.  A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation , 2000, MIS Q..

[43]  Cristiane Drebes Pedron,et al.  Using the dynamic capabilities perspective to analyse CRM adoption: a multiple case study in portuguese organisations , 2009 .

[44]  Louis Raymond,et al.  Aligning IT Capabilities with the Information Requirements of International SMEs: Information Processing Theory Revisited , 2014, 2014 47th Hawaii International Conference on System Sciences.

[45]  Lin Liu,et al.  E-business Capability Research: A Systematic Literature Review , 2010, 2010 3rd International Conference on Information Management, Innovation Management and Industrial Engineering.

[46]  Patrick Mikalef,et al.  Developing IT-Enabled Dynamic Capabilities: A Service Science Approach , 2014, BIR.

[47]  Jos van Hillegersberg,et al.  Change factors requiring agility and implications for IT , 2006, Eur. J. Inf. Syst..

[48]  Kai H. Lim,et al.  How Does IT Ambidexterity Impact Organizational Agility? , 2015, Inf. Syst. Res..

[49]  Lior Fink,et al.  How do IT capabilities create strategic value? Toward greater integration of insights from reductionistic and holistic approaches , 2011, Eur. J. Inf. Syst..

[50]  Kurt Sandkuhl,et al.  Development of an Enterprise Architecture Management Capability Catalog , 2013, BIR.

[51]  Tore Dybå,et al.  Empirical studies of agile software development: A systematic review , 2008, Inf. Softw. Technol..

[52]  Robert W. Zmud,et al.  Research Commentary: The Organizing Logic for an Enterprise's IT Activities in the Digital Era - A Prognosis of Practice and a Call for Research , 2000, Inf. Syst. Res..

[53]  Constance E. Helfat The SMS Blackwell handbook of organizational capabilities : emergence, development, and change , 2003 .

[54]  Martin Curley Enabling Dynamic Capabilities through Agile IT and beyond Budgeting Practices , 2010, LESS.

[55]  Cemal Zehir,et al.  Development and Validation of a Multidimensional Business Capabilities Measurement Instrument , 2009 .

[56]  Elena Karahanna,et al.  Antecedents of IS Strategic Alignment: A Nomological Network , 2009, Inf. Syst. Res..

[57]  Na Cai,et al.  A Theoretical Research to the Construct of Electronic-Business Capability , 2010, 2010 International Conference on E-Business and E-Government.

[58]  I. Barreto Dynamic Capabilities: A Review of Past Research and an Agenda for the Future , 2010 .

[59]  Hsiu-Fen Lin,et al.  Determinants of e-business diffusion: A test of the technology diffusion perspective , 2008 .

[60]  Kathleen M. Eisenhardt,et al.  DYNAMIC CAPABILITIES, WHAT ARE THEY? , 2000 .

[61]  Mark C. Paulk,et al.  Capability Maturity Model , 1991 .

[62]  Bala Iyer,et al.  The Four-Domain Architecture: An approach to support enterprise architecture design , 2004, IBM Syst. J..

[63]  Kenneth L. Kraemer,et al.  Post-Adoption Variations in Usage and Value of E-Business by Organizations: Cross-Country Evidence from the Retail Industry , 2005, Inf. Syst. Res..

[64]  Izak Benbasat,et al.  Enhancing Strategic IT Alignment through Common Language: Using the Terminology of the Resource-based View or the Capability-based View? , 2015, ICIS.

[65]  Louis Raymond,et al.  International Journal of Information Management Information Management for the Internationalization of Smes: an Exploratory Study Based on a Strategic Alignment Perspective , 2022 .

[66]  Michael Kaplan,et al.  Patterns of capability acquisition in electronic commerce , 2004 .

[67]  B. Wernerfelt,et al.  A Resource-Based View of the Firm , 1984 .

[68]  Christian Danekas Deriving business requirements from technology roadmaps to support ICT-architecture management , 2012, 2012 International Conference on Smart Grid Technology, Economics and Policies (SG-TEP).

[69]  Jan Tow Lawrence Chu,et al.  Building and sustaining the sources of competitive advantage in e-commerce capabilities (core rigidity, resource-based) , 2005 .

[70]  Martin Curley,et al.  The IT Capability Maturity Framework:A Theory for Continuously Improving the Value Delivered from IT Capability. , 2008 .