A resource based and real options perspective on IT infrastructure investments aiming for strategic flexibility

Today’s turbulent environment increases the degree of uncertainty organizations can experience. Organizations differentiate and develop a repertoire of competencies to respond to, and to influence this environment. The degree to which organizations can respond to the competing demands is a measure of an organization’s strategic flexibility. The business imperative of strategic flexibility is posing new requirements on the IT capabilities to deliver applications that facilitate responsiveness to customer demands and provide cost-effective, scalable infrastructures that enable enterprise-wide business processes. In literature, IT infrastructure is regarded as a major resource for attaining competitive advantage. We present a model using resource based theory and real option theory. The presented model lays a theoretical foundation that can be used as a basis for future empirical research. In this research we will try to answer how firms, in a turbulent environment, structure their IT infrastructure resources and capabilities and how they capture the value of managerial flexibility of IT infrastructure investment opportunities in their aim for strategic flexibility.

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