Information Technology and Firm Innovations: A Review and Extension Explicating the Role of Networks, Capabilities, and Commercialization of Innovation

Literature Review

The literature review process followed three steps (1) the development of criteria for the types of studies, (2) a literature search strategy, and (3) an analysis scheme outlining the documentation and coding of various studies (Leidner & Kayworth, 2006).

• 1.

  Criteria for the types of studies: We searched for conceptual and/or empirical papers that looked at the impact of IT capability on firm innovation.

• 2.

  A literature search strategy: The EBSCOhost, ABI Informs, JStor Databases were used to search articles. We searched articles using the key word IT capability and then narrowed the search using several combinations of key phrases such as knowledge management, knowledge activities, knowledge capability, and innovation. The articles that focused on the association between IT capability, knowledge assets, and/or firm innovation were included. Our search resulted in 91 articles. We reviewed all 91 papers to examine the role of ITC on firm innovation. Our total search revealed a total of 49 relevant articles.

• 3.

  An analysis scheme outlining the documentation and review of included various studies: We reviewed the articles to uncover the characterization of ITC, knowledge networks, knowledge capabilities, and innovation. Each article was reviewed to determine whether or not a study explicated the role ITC in enabling organizational knowledge networks and capabilities to create firm innovation. A summary of this review is presented in Table 1 and used to make observations about the perceived gaps in IT capability literature to address the role of IT in firm innovation. Second, each study was evaluated and used as a foundation for developing the research framework posited in this study.