A framework for investigating the impact of IT capability and organisational capability on firm performance in the late industrialising context

From the viewpoint of the whole organisation, the capabilities of a firm can be classified into technological capability and organisational capability. Nowadays, how to accelerate the rate of building up and accumulating technological capabilities is of vital importance to the latecomer companies in order to catch up with technological frontier companies. Technological capability encompasses the Information Technology (IT) capability and other technical but non-IT capabilities. In this paper we focus on the IT capability and its effect on a firm’s performance and propose an integrated framework that provides the latecomer firms with a roadmap to build up their capabilities and improve their performance. The purpose is to advance an understanding of the relationship among IT capability, organisational capability, and firm performance. 210 E.Y. Li, J-S. Chen and Y-H. Huang