The Study on Basic Approaches of Firms' Using IT with a Resource-Based Perspective

Abstract

The evolution of information technology (IT) in firms can be captured in some stages, and each stage displays distinct characteristics regarding the application of IT and has different objectives. Thus, different IT resources and skills are needed in different stages. The purpose of this paper is to develop the theoretical links between IT capability and the stage of firm's using IT. Firstly, three stages of IT applications in the firms are identified: internal integration focus effectivity, external integration focus effectivity and strategic orientation. Secondly, three levels of IT capability are analyzed in detail. Based on resource-based view (RBV), a model linking the level of IT capability with the stage of IT applications is built finally in this paper. In order to build competitive advantage, firms must cultivate and upgrade its IT capability dynamically according to the evolution of IT applications.