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IT capabilities’ business value: analysis of multi-level performance in Brazilian organizations

Abstract:

Considering the demands of the Resource-Based Theory (RBT) and Information Systems (IS) literature regarding the identification of IT value in multi-level business performance, this article aims to detect the extent to which IT Capabilities directly impact performance at the process level and indirectly impact performance at the company level. A survey method was adopted and applied in three research phases: i. Pre-test survey – with researchers representing IT and business areas; ii. Pilot study – with IT and business professionals, and iii. Complete study – with IT and business managers in large Brazilian organizations, according to the 2012 ranking of the largest Brazilian organizations. The measurement model was defined using the Structural Equation Modeling in the pilot study and confirmed in the complete study, with the research hypotheses tested in the structural model. The results show that IT Capabilities positively impact Process Performance, which, in turn, impacts Company-level performance. Additionally, IT Capabilities are found to have an indirect impact on Company Performance, confirming partial mediation by Performance at the Process level. The moderating effects of four variables (company size, lifespan, sector dynamism, and industry) were tested in the relationship between IT Capabilities and Process Performance, presenting null results for all four. The theoretical contributions of this research, along with its limitations and research opportunities, are provided in the discussion and conclusion of the article.

Keywords:
IT value; IT capabilities; Multi-level performance

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