Business strategy, IT strategy and managing IT impact on firm performance (dependent variable)
Which is the most suitable theory/ view to write a theoretical background for the above context?
a) Process based view
b) Contingency Perspective
c) Resource based view
Please suggest me is there any other better theory which best support for the above context.
Thanks @ Nur Suhaili Ramli. my research context is IT contribution to firm performance
Aboobucker,
Since you are interested in finding firm performance (dependent variable), Resource Based View would be a better theory for the context.
Thanks and regards,
Rekha Mishra
It seems that you are combining business and functional strategies at one go..:) Business strategies like cost leadership, differentiation and focus.
Resource-based view caters primarily on the contribution of resources and capabilities towards sustainable competitive advantage through the four main strategic traits: valuable, rare, inimitable and non-substitutable. You need some deep digging on how to link strategies and RBV. You may refer to Dollinger (2004) cz he categorized resources into physical, reputation, organization, financial, intellectual and human capital and technology. Maybe you want to put your studies under 'organization'. The way I see it, you want to study strategy per se, not the capability of developing those strategies.
Process-based view focuses on the process or core processes and how they contribute to business performance. I am not sure if this is what you are looking for.
As for contingency theory..well...are the strategies and management styles changes according to situation?
I suggest you to search for other theories before make your decision.
I think it also depends on how you plan to operationalize the variables. For example for firm performance if you are looking at a general forward looking metric, like Tobin’s q, a general strategic framework like RBV may be effective—as long as you can effectively describe in your model how IT is rare, inimitable and non-substitutable. If you are looking at other firm performance measures, such as sales growth or innovation output you may want to focus on other frameworks, such as dynamic capabilities view. For the variable IT strategy if you are examining the human impact of IT strategy (CIO reporting structure, technology professional representation on the board of directors, etc.) you may be better served by using a more managerial focused approach like Upper Echelon Theory. In this case I think that the ideal theoretical framework would depend upon how you plan to implement these variables.
Dear Aboobucker,
Please, have a look at my attempt to measure the IT sector using the Company Innovative Leadership Model. I think the article fits some of your necessities.
Article Measuring the Bulgarian IT Sector Innovations Capabilities T...
You may take a look at these two publications for RBV and IT:
"Resource-based view and competitive strategy: An integrated model of the contribution of information technology to firm performance" Suzanne Rivard, Louis Raymond, David Verreault . Journal of Strategic Information Systems 15 (2006) 29–50
"The impact of information technology on supply chain capabilities and firm performance: A resource-based view"
Fang Wu, Sengun Yeniyurt, Daekwan Kim, SR Tamer Cavusgil. Industrial Marketing Management 35 (2006) 493 – 504
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