A resource-based perspective on information technology and firm performance: a meta analysis

• Published in: Industrial management + data systems 2010-08, Vol.110 (8), p.1138-1158
• Main Authors: Liang, Ting-Peng, You, Jun-Jer, Liu, Chih-Chung
• Format: Article
• Language: English
• Subjects: Aggregates; Business metrics; Competition; Competitive advantage; Design engineering; Efficiency; Guidelines; Hypothesis testing; Industrial management; Information systems; Information technology; Investment; Literature reviews; Media richness; Meta-analysis; Performance enhancement; Productivity; Resource management; Return on assets; Social exchange theory; Strategic management; Studies
• ISSN: 0263-5577; 1758-5783
• DOI: 10.1108/02635571011077807

Purpose - The purpose of this paper is to aggregate previous research that adopts the resource-based view (RBV) to examine whether information technology (IT) and organizational resources have significant effect on firm performance.Design methodology approach - A framework that includes direct and indirect-effect models is proposed. A meta-analysis was conducted on 42 published empirical studies to examine how different factors in the RBV affect firm performance.Findings - First, it was found that the mediated model that includes organizational capabilities as mediators between organizational resources and firm performance can better explain the value of IT than the direct-effect model without organizational capabilities. Second, technology resources can improve efficiency performance but may not enhance financial performance directly. Third, internal capabilities affect performance but it is external capabilities that affect financial performance.Research limitations implications - The limitation of meta-analysis is that findings are based on prior research conducted on different sources at different times. This may cause observation biases. Nonetheless, the large sample size can also increase the robust of the findings.Practical implications - The findings indicate that companies should focus on how IT resources can be used to enhance their capabilities, which will result in better performance.Social implications - The findings provide strong evidence that IT has contributed to both financial performance and organizational efficiency through strengthening organizational capabilities. The IT has been effectively used so far and the suspected productivity paradox does not exist.Originality value - The paper contributes to information management by increasing the theoretical and practical understanding of how IT resources affect organizational capabilities and firm performance. The findings provide valuable guidelines for future research on IT investment and firm performance.