Type: Process Essays
Sample donated: Antonio Carroll
Last updated: June 19, 2019
The resource-based view is anotherapproach through which we can stipulate how to achieve competitive advantage.The defenders of the theory say that there is higher possibility to achievecompetitive advantage and higher organizational performance with theapplication of tangible and intangible resources when managing theorganization. If the organization wants to keep sustainable competitiveadvantage, the quality of the resources it should posses are Heterogeneous andImmobile. Barney (1991) said that the resources which are valuable should behard to be copied or imitated.
If all these requirements are fulfilled, theorganization may achieve competitive advantage. In their works Crook et al(2008) have confirmed with undisputed evidences which sustain the resourcebased theory. The resource-based theory is also utilized in information systemresearch according to a research of Wade and Hulland (2004). They aredifferentiated between resources which are separated into assets andcapabilities. As capabilities we can define skillful abilities and processes oradministrative abilities like system evolution or consolidation while inopposition for assets we can specify all the tangible or intangible assetswhich can help to the organization to utilize in its operations for developing,creating or producing its particular products for the market. In theinvestigation of Wade and Hulland 2004 the resources are identified to servethe same way as the features which are used in the Information Systems.
Meta et al. talk about fourInformation Technology resources which are capital requirements, technical ITskill, proprietary technology and the last one is managerial IT skill. As aresult they come to a conclusion that only managerial IT skill the only way throughwhich a firm can gain competitive advantage through the resource-based theory.
Qi et al notice that firm should invest enormous efforts and time to gainskills so as to get competitive IT resources. This can bring us to theconclusion that IT can become a resource of competitive advantage. These fourtheories we already counted in the paragraph bring significant and practicalvalue to explore how much the IT influence over competitive advantage.
Unfortunately each theory is concentrated over one aspect connected to IT’srole and there is not enough studies which are clearly focused on the linkageamong the theories. Soh’s process model offers a way how to create businessvalue and also a guidance how to achieve sustainable competitive advantage. Inthat model the important fact to mention is that IT capability is havingsignificant role in the ‘IT conversion process’ and ‘IT use process’.Significant role is having ITcapabilities because they are deployed into combination with other resources.They are tightly connected with the history , culture and experience of theorganisations and all these components are difficult to be duplicated andcopied by the rivals on the market and they are good fundament for organizationto obtain competitive advantage.
The strong capabilities of IT owned by firmsdo not only increase the efficiency of the investments in IT but they turn intoIT resources. This helps firm’s resources to unify with its complementaryresources and brings to improved performance respectively to a sustainablecompetitive advantage. Conclusion We can conclude that there arecontroversy opinions ‘If IT matters or not’ and Nicolas Carr’s words haveprovoked many debates upon that question. And it is obvious that he has madelots of computers moguls exasperated and feeling uncomfortable. The VRIOframework shows also that IT doesn’t bring competitive advantage to firmsbecause it is not valuable, rare and costly to be imitated. But from the lastparagraph we can see that managerial IT skill or with other words the humanfactor can bring to the company competitive advantage. The IT capability theoryshould be constantly improved and updated through organizational learningwhich will bring to effectively guidance for firms how to utilize IT and gaincompetitive advantage.