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How IT-Enabled Dynamic Capabilities Add Value to the Development of Innovation Capabilities
Abstract
The development of innovation capabilities is crucial for modern organizations. This research builds on the dynamic capability view and aims to understand how a specific quality of the IT infrastructure, that is, IT flexibility, through the development of IT-enabled dynamic capabilities (ITDCs), leads to innovation gains. The authors empirically validate their main research questions and associated research model using multiple regression analyses on a sample of 138 Dutch firms. They gathered this data through respondent-driven sampling. This study uncovers that IT flexibility is a key attribute in the development of ITDCs. Also, their empirical results support that claim that the development of ITDCs fosters organizations' capability to innovate. These outcomes substantiate our claim that IT is an essential facilitator for innovation capabilities. They also uncovered that the effect of IT flexibility, through ITDCs on innovation capabilities is independent of the complexity of the market. As such, this work contributes to the current practical and theoretical knowledge base of both IT and business.
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