European Business Schools Librarian's Group

Les Cahiers de Recherche,
HEC Paris

No 1080: The Impact of Aligning IT Capability and Operations Strategy on Operational Performance

Andrea Masini (), Andrea Bacchetti (), Marco Perona () and Massimo Zanardini ()

Abstract: This paper examines the relationship among IT capability, operations strategy decisions and operational performance. Using primary data from a sample of European firms, the authors test a model of fit between two specific IT capability-building decisions and three competitive priorities, and they analyze the impact of IT capability alignment on several dimensions of process performance. After uncovering three stylized configurations, they note that firms tend to adopt internally coherent IT capability-building decisions but they find only mixed evidence of alignment between IT capability-building decisions and competitive priorities. Interestingly, however, failing to achieve alignment has negative performance consequences but only for firms that develop limited IT capability. Their results suggests that IT plays a central role in the fulfillment of a firm’s operations strategy, not only for firms that pursue differentiation and are interested in improving the effectiveness of their customer-oriented functions, but also for firms seeking efficiency improvements in back-office operations. Although it is, a priori, more expensive, the development of advanced IT capability can support cost leadership strategies more effectively than a frugal approach, as long as IT projects are used to generate operational knowledge and thus improve process efficiency. At the same time, their results cast further doubt on the value of frugal IT capability, even for firms that strive to reduce cost.

Keywords: Operations strategy; IT capability; process performance; configurations; empirical analysis

37 pages, January 26, 2015

Full text files

papers.cfm?abstract_id=2561166 PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Antoine Haldemann ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-02-22 16:53:03.