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

Abstract

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.

Citation

Liang, T., You, J. and Liu, C. (2010), "A resource‐based perspective on information technology and firm performance: a meta analysis", Industrial Management & Data Systems, Vol. 110 No. 8, pp. 1138-1158. https://doi.org/10.1108/02635571011077807