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What is Direct-Effect Model

Chapter 406
Encyclopedia of Information Science and Technology, Third Edition
It value models that propose a direct link between IT and firm performance improvement.
Published in Chapter:
IT Resources, IT-Enabled Capabilities, and Business Performance
Morteza Ghobakhloo (Universiti Putra Malaysia, Malaysia), Tang Sai Hong (Universiti Putra Malaysia, Malaysia), and Samrena Jabeen (Arab Open University, Saudi Arabia)
Copyright: © 2015 |Pages: 11
DOI: 10.4018/978-1-4666-5888-2.ch406
Abstract
A number of IT scholars attempted to analyze the direct contribution of IT to firm performance, but, the findings were mixed and inconclusive. Viewed from IT-enabled organizational capability perspective, recent scholars increasingly consider the firm's IT resources as complementary resources augmenting the value of other organizational resources and capabilities, which will further lead to the performance improvement. This article provides a comprehensive review on the background of IT-enabled organizational capability and provides potential research directions for future IT scholars.
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