Dynamic information technology capability: Concept definition and framework development

Abstract In a digital world, information technology (IT) units routinely update their capabilities to cope with changing business requirements and frequent technology releases. Extending the dynamic capabilities literature, this article presents the concept of dynamic IT capability, a multidimensional first-order dynamic capability that enables IT units to assist firms in appropriating business value from IT resources by influencing a set of IT-related ordinary capabilities. Scholars currently lack a dynamic capabilities framework that explains, from an IT unit’s perspective, how IT resources can be acquired, deployed, integrated, and reconfigured to fulfill business objectives. To bridge this research gap, we develop a high-level framework that highlights three constituent components of dynamic IT capability: dynamic digital platform capability, dynamic IT management capability, and dynamic IT knowledge management capability. Through an extensive literature review, we identify and summarize the set of ordinary capabilities that each dynamic IT capability component creates and reconfigures. We then offer guidance on future instrument development. To encourage further exploration of this critical construct, we close by highlighting future avenues for dynamic IT capability research.