The Impact of IT on Competitive Advantage: A Microeconomic Approachto Making the Resource-Based View Explicit

How can an organization establish an efficient IS resource? Over the years, the resource-based view (RBV) has provided important insights into the value creation by IT. Unfortunately, large parts of the literature suffer from broad and ambiguous constructs that are problematic to validate and difficult to concretely apply. Furthermore, the transmission from IT resources on one side to competitive advantage on the other is not yet sufficiently understood. Goal of this paper is to clarify some of the often used constructs and build a framework for the transmission from the endowment with resources to the achievement of competitive advantage. In this paper, we aim to contribute to this research strand in two ways. First, a model incorporating many isolated findings from the RBV is developed. Reflecting the need for a process view as proposed by large parts of the alignment and strategic management literature, this is integrated into a single process framework of analysis. Second, by augmenting a microeconomic production function incorporating organizational routines the transmission from IT resource to better business process performance is explicated, allowing simultaneous parameter sensitivity analysis and contributing to making the RBV applicable and open for empirical research.