Visible IT in Credit Unions: Strategic Advantage and Disadvantage in Two Web Eras

Abstract

Research indicates that rapidly evolving technology and markets do not provide a first mover strategic advantage but favor the second mover. This paper introduces a third variable: hype. In a time of rapid technology and market evolution, hype overrides the expected results and gives the first mover a strategic advantage. This study examines a homogeneous set of medium-sized information-dependent and information-intensive organizations as they implement visible information technology in two eras: during a time of intense hype and during a more normal time where technology has become commonplace. One hundred matched triples of credit unions were examined as they chose to remain offline, implement an informational website, or implement a transactional website during the highly hyped Internet expansion time of 1998 through 2002. One hundred matched pairs of credit unions were then examined during the more normal time from 2003 through 2007. Results indicate that credit unions that embraced the hyped technology gained significant strategic advantage. Second-moving credit unions that waited for the more mature technology survived, whereas the credit unions that did not adopt the technology were at a significant strategic disadvantage.