Systemic capabilities: the source of IT business value

Guangming Cao, Yangding Duan, Trevor Cadden, sonal minocha

Research output: Contribution to journalArticle

13 Citations (Scopus)

Abstract

Purpose – The purpose of this paper is to develop, and explicate the significance of the need for asystemic conceptual framework for understanding IT business value.Design/methodology/approach – Embracing a systems perspective, this paper examines theinterrelationship between IT and other organisational factors at the organisational level and its impact on the business value of IT. As a result, a systemic conceptual framework for understandingIT business value is developed. An example of enhancing IT business value through developingsystemic capabilities is then used to test and demonstrate the value of this framework.Findings – The findings suggest that IT business value would be significantly enhanced whensystemic capabilities are generated from the synergistic interrelations among IT and otherorganisational factors at the systems level, while the system’s human agents play a critical role indeveloping systemic capabilities by purposely configuring and reconfiguring organisational factors.Practical implications – The conceptual framework advanced provides the means to recognise thesignificance of the need for understanding IT business value systemically and dynamically.It encourages an organisation to focus on developing systemic capabilities by ensuring that IT andother organisational factors work together as a synergistic whole, better managing the role its human agents play in shaping the systems interrelations, and developing and redeveloping systemic capabilities by configuring its subsystems purposely with the changing business environment.Originality/value – This paper reveals the nature of systemic capabilities underpinned by a systemsperspective. The resultant systemic conceptual framework for understanding IT business value canhelp us move away from pairwise resource complementarity to focusing on the whole system and its interrelations while responding to the changing business environment. It is hoped that the framework can help organisations delineate important IT investment considerations and the priorities that they must adopt to create superior IT business value.
LanguageEnglish
Pages556-579
JournalInformation Technology and People
Volume29
Issue number3
DOIs
Publication statusAccepted/In press - 10 Aug 2015

Fingerprint

Business value of IT
IT business value
Conceptual framework
Organizational factors
Business environment
Subsystem
IT investment
Systems perspective
Design methodology
Resources
Business value
Complementarity
Factors
Organizational level

Keywords

  • IT capability
  • IT business alignment/value
  • Information system effectiveness
  • Dynamic capabilities/relationships/perspective

Cite this

Cao, G., Duan, Y., Cadden, T., & minocha, S. (Accepted/In press). Systemic capabilities: the source of IT business value. 29(3), 556-579. https://doi.org/10.1108/ITP-05-2014-0090
Cao, Guangming ; Duan, Yangding ; Cadden, Trevor ; minocha, sonal. / Systemic capabilities: the source of IT business value. 2015 ; Vol. 29, No. 3. pp. 556-579.
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Systemic capabilities: the source of IT business value. / Cao, Guangming; Duan, Yangding; Cadden, Trevor; minocha, sonal.

Vol. 29, No. 3, 10.08.2015, p. 556-579.

Research output: Contribution to journalArticle

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