DYNAMIC IT CAPABILITIES: THEORY DEVELOPMENT AND EMPIRICAL EXAMINATION

Abstract

<p>This thesis examines <em>dynamic IT capabilities:</em> firms’ abilities to integrate, build, and reconfigure information technology resources concurrently with organizational business process and managerial processes in pursuit of performance advantages in a changing or uncertain environment. Research in dynamic IT capabilities has increased with the recognition that organizational survival and growth requires organizational change to resolve a range of management challenges that emerge over time. In prior research, specific constructs of dynamic IT capabilities have been the subject of independent empirical investigation. This has resulted in conflicting conceptualizations of dynamic capabilities that obfuscate theoretical definition, empirical grounding and measurement. We seek to contribute conceptual coherence to the discourse on dynamic IT capabilities in three respects. First, we advance a theoretical framework to tease apart the common versus idiosyncratic elements of firms’ dynamic capabilities to <em>exploit</em> IT in practice. Our empirical findings serve to integrate conflicting (common versus idiosyncratic) conceptualizations of dynamic IT capabilities. Second, we advance a theoretical framework of firms’ dynamic capabilities to <em>explore</em> for IT innovations that are likely to improve firm performance. To that end we examine CIOs’ use of external advice networks to mindfully identify rewarding IT innovations. In so doing we clarify the concept of mindfulness. We find mindful external advice seeking is atypical in practice, contrary to assumptions of the technology diffusion and institutional literatures. Our empirical findings elucidate the significance of IT governance in motivating mindful search for rewarding IT innovations. Third, we demonstrate the importance of qualitative and configurational methodologies in investigating such complex phenomena as dynamic IT capabilities. We also propose promising future research directions, theoretical grounding and analytical techniques that, by building on the concepts advanced in this study, can further advance our understanding of how firms acquire and realize dynamic IT capabilities in support of sustained performance advantages.</p>