The relationship between IT infrastructure leveraging, talent management and operational sustainability, and their effects on the business value of the operations strategy

The purpose of this research is to examine the role of information technology (IT) in the adoption of human resources (HR) and environmental management activities, a research topic that has not received much attention in prior literature. Drawing on the theory of operational and dynamic capabilities, we propose a model in which IT infrastructure leveraging enables the firm to create value from its operations management both directly and indirectly through talent management and operational sustainability. We test the model using the structural equation modeling (SEM) technique with an innovative secondary data set collected for a sample of 63 large firms. The empirical analysis suggests that IT infrastructure leveraging enables the firm’s proficiency to manage talent, which in turn facilitates execution of a more sustainable operations strategy to increase firm performance. The analysis also shows that IT infrastructure leveraging impacts firm performance directly in the longterm.