Information Technology Capability, Knowledge Assets and Firm Innovation: A Theoretical Framework for Conceptualizing the Role of Information Technology in Firm Innovation

Information Technology Capability, Knowledge Assets and Firm Innovation: A Theoretical Framework for Conceptualizing the Role of Information Technology in Firm Innovation

Avimanyu Datta (Illinois State University, USA)
DOI: 10.4018/jsita.2011070102
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Abstract

In this paper, the author presents a theoretical framework that establishes an indirect link between IT capabilities and firm innovation by characterizing the mediating role of knowledge assets: knowledge networks and knowledge capabilities. Firm innovation itself is characterized as innovation development and innovation commercialization. The search on literature of IT capability and innovation revealed a very lukewarm recognition towards firm level variables in knowledge networks, knowledge capabilities, and distinction between innovation development and commercialization. Backed up by detailed reviews of literature on innovation, strategy, and entrepreneurship, the author posits propositions linking the aforementioned constructs, and proposes a framework for future research linking IT Capability with Firm Innovation.
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It Capability And Firm Innovation

The knowledge assets necessary for innovation include technological knowledge and product-market knowledge. Firms that possess these necessary knowledge assets will be more successful with creating and commercializing firm innovations (Nerkar & Roberts, 2004). According to Nerkar and Roberts (2004), technological knowledge develops as a result of a specific history of technological experience, while product-market knowledge (which they refer to as complementary knowledge assets) develop as a result of a specific history of product-market participation. The process of developing technological knowledge (such as patents) which can be used to create new products and services is referred to as Innovation Development (ID). The process of bringing the innovations that firm creates to market is referred to as Innovation Commercialization (IC).

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