How Information Technology Capabilities Influence Organizational Innovation: Exploratory Findings from two Case Studies

This paper is based on research-in-progress that examines how a firm’s information technology (IT) capabilities affect its ability to innovate. Prior research has identified five dimensions of IT capability and three activities related to innovation. The current research draws on these themes and examines the interplay among these factors. We used a multiple case study method and studied innovation activities at three case sites. The findings so far have revealed that the different aspects of IT capability do indeed affect an organization’s ability to innovate and influence the innovation process in different ways. The paper explains how and why this is so, and identifies areas for further enquiry.