The DOI matches its Crossref record; 4 of the 4 references it cites were found in a registry or an index.
The Complementarity of Information Technology Infrastructure and E-Commerce Capability: A Resource-Based Assessment of Their Business Value
Abstract
This study seeks to assess the business value of e-commerce capability and information technology (IT) infrastructure in the context of electronic business at the firm level. Grounded in the IT business-value literature and enhanced by the resource-based theory of the firm, we developed a research framework in which both the main effects and the interaction effects of e-commerce and IT on firm performance were tested. Within this theoretical framework, we formulated several hypotheses. We then developed a multidimensional e-commerce capability construct, and after establishing its validity and reliability, tested the hypotheses with empirical data from 114 companies in the retail industry. Controlling for variations of firm size and subindustry effects, our empirical analysis found a strong positive interaction effect between IT infrastructure and e-commerce capability. This suggests that their complementarity positively contributes to firm performance in terms of sales per employee, inventory turnover, and cost reduction. The results are consistent with the resource-based theory, and provide empirical evidence to the complementary synergy between front-end e-commerce capability and back-end IT infrastructure. Combined together, they become more effective in producing business value. Yet the value of this synergy has not been recognized in the IT payoff literature. The "productivity paradox" observed in various studies has been attributed to variation in methods and measures, yet we offer an additional explanation: ignoring complementarities in business value measurement implies that the impact of IT was seriously underestimated. Our results emphasized the integration of resources as a feasible path to e-commerce value--companies need to enhance the integration between front-end e-commerce capability and back-end IT infrastructure in order to reap the benefits of e-commerce investments.
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Citations
Cites
Firm Resources and Sustained Competitive Advantage
Barney, J. (1991) · Journal of Management · doi:10.1177/014920639101700108 · Cited by 48,334
Bharadwaj, A. S. (2000) · MIS Quarterly · doi:10.2307/3250983 · Cited by 5,042
The emerging role of electronic marketplaces on the Internet
Bakos, Y. (1998) · Communications of the ACM · doi:10.1145/280324.280330 · Cited by 1,386 · cited 2×
“In fact, the economic characteristics of the Internet are significantly different from those of pre-Internet computer technologies [3, 61].”
Zhu, K., & Kraemer, K. L. (2002) · Information Systems Research · doi:10.1287/isre.13.3.275.82 · Cited by 779
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Cited by
Zhu, K., & Kraemer, K. L. (2005) · Information Systems Research · doi:10.1287/isre.1050.0045 · Cited by 1,723
Self-citationZHU, K., KRAEMER, K. L., & DEDRICK, J. (2004) · Journal of Management Information Systems · doi:10.1080/07421222.2004.11045797 · Cited by 775
Self-citationDrnevich, P. L., & Kriauciunas, A. P. (2011) · Strategic Management Journal · doi:10.1002/smj.882 · Cited by 681
Understanding e-business adoption across industries in European countries
Oliveira, T., & Martins, M. F. (2010) · Industrial Management & Data Systems · doi:10.1108/02635571011087428 · Cited by 641
Determinants of e-business diffusion: A test of the technology diffusion perspective
Lin, H.-F., & Lin, S.-M. (2008) · Technovation · doi:10.1016/j.technovation.2007.10.003 · Cited by 447
Metadata
- Authors
- ZHU, K.
- Venue
- Journal of Management Information Systems
- Publisher
- Informa UK Limited
- Published
- 2004-07-01
- Volume
- 21
- Issue
- 1
- Pages
- 167-202
- ISSN
- 0742-1222 (ISSN-L)
- 1557-928X
- OpenAlex
- W2140590715
- Cited by
- 725
- References
- 4
- FWCI
- 34.12
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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