Business value of information technology (BVIT): Exploring attained and sustained BVIT Conference Paper uri icon

abstract

  • The dependent variable BVIT (business value of information technology) has been a point of significant debate among IT researchers and has pro ved to be difficult to operationalize (Wade and Hulland 2004 ). Past IT research which was concentrated on conce ptualizing or measuring BVIT, paid little attention to the multif arious perspectives of BVIT, both from the time-series aspect as well as from the multi-discip line nature of BVIT existence. Practically, IT researchers have tended to construct BVIT from RBV (resource-based view) elements, which cannot cover its broad nature, or to adopt a relatively narrow definition, which usually uses specific BVIT proxy measurements as growth rate, profitability or perceived corporate performance. This paper defines and explores two ne w major sub-variables for BVIT, Attained (short-term) BVIT and Sustained (long-term) BVIT, constructed on the fundamental theory of RBV and connected to the groundwork of SAM (strategic alignment model). Attained-BVIT can be originated in an ex-ante position to the firm's perceived performance and given competition, in which case IT investments can influence assets utilization, improve efficiencies, enhance short term-duration of compet itiveness and reinforce endogenous firm manageability. Sustained-BVIT can be originated in an ex-post position to the firm's actual performance and evolving competition, in which case IT investments can leverage resources to form unique advantages, improve firm effectivene ss, enhance long term-duration of competitiveness above IAE (industry average earnings), and can enrich the firm agility to cope with exogenous dynamic competitive forces.

publication date

  • January 1, 2007