Leveraging IT Capabilities and Competitive Process Capabilities for the Management of Interorganizational Relationship Portfolios
Authors: Rai, Arun; Tang, Xinlin
Journal: Information Systems Research (2010)
<jats:p> Firms are increasingly dependent on external resources and are establishing portfolios of interorganizational relationships (IRs) to leverage external resources for competitive advantage. However, the systems of information technology (IT) and process capabilities that firms should develop to manage IR portfolios dynamically are not well-understood. In order to theorize how key structural IT capabilities (IT integration and IT reconfiguration) and competitive process capabilities (process alignment, partnering flexibility, and offering flexibility) operate as systems of complements, we draw on the competitive dynamics perspective and resource dependency theory and on the literature for IT business value, interorganizational systems, and interorganizational relationship management. We also theorize how a firm's IR portfolio moderates the effects of structural IT capabilities on competitive process capabilities and why a firm's environmental turbulence moderates the effects of complementary process capabilities on competitive performance. We test our model using survey data from 318 firms in 4 industries. Our results provide broad support for the following: (1) structural I…