Information Technology and Organizational Capability - What Chandler Would Think Today?

Organizational capability has been regarded as one of the principle sources of sustainable competitive advantage and the foundation for strategy formulation. Meanwhile, many anecdotal evidences have indicated that information technology (IT) is playing a very important role in building an organization’s capabilities. Although there has been a myriad of research on how IT could help in today’s fierce business competition, a theoretical foundation regarding the relationship between IT and organizational capability is still missing. This paper attempts to fill this void by borrowing Chandler’s points of view toward organizational capability.