Information Technology and Strategy: Two Camps, Four Perspectives, One Elusive Goal

Theory Development

Before proceeding with a discussion of the literature, several definitions merit clarification. First, the term ‘IT’ generally refers to any form of ‘computer-based’ information system, including mainframe, microcomputer, and intra/internet applications (Orlikowski & Gash, 1992; Powell & Dent-Micallef, 1997). The term IT resources has come to represent (1) the tangible resources that make up the physical IT infrastructure components, (2) the human IT resources that represent technical and managerial IT skills, and (3) the intangible IT-enabled resources such as knowledge assets and customer orientation (Bharadwaj, 2000, p. 171). These classifications reflect Barney’s (1991, p. 101) broader definition of firm resources as the “assets, capabilities, processes, information, and knowledge controlled by the firm.” IT resources may consist of human, relationship, and technology components, all of which interact with and can hold implications for the other (Ross, Beath, & Goodhue, 1996). Similarly, the term IT capability represents a firm’s ability to mobilize and deploy its IT-based resources in combination with other resources and capabilities (Bharadwaj, 2000, p. 171). IT capabilities may consist of categories of capabilities such as business and IT vision, design of IT architecture, and delivery of IT services (Feeny & Willcocks, 1998).