Start Date
10-12-2017 12:00 AM
Description
Previous empirical studies that examined the relationship between slack resources and firm performance are ambiguous. To gain insight into this relationship, the current study draws upon the resource orchestration perspective and proposes that the combination of slack resources and IT capability ultimately results in superior firm performance. Specifically, the current study adopts publicly available ratings and matched sample comparison group methodology to assess IT capability. By analyzing the unbalanced panel data of 546 manufacturing industrial firms from 2006 to 2008, this study presents an in-depth comparison between IT leaders and their counterparts. The analysis confirms that IT capability negatively moderates the positive relationship between available slack resources and firm performance but positively moderates the negative relationship between recoverable slack resources and firm performance and positively moderates the negative relationship between potential slack resources and firm performance. This paper discusses about the theoretical contributions and practical implications of the study.
Recommended Citation
Zhu, Jiantao; Liu, Hefu; Chen, Meng; and Yu, Yugang, "Does IT Capability Matter? The Influence of Slack Resources on Firm Performance" (2017). ICIS 2017 Proceedings. 11.
https://aisel.aisnet.org/icis2017/Strategy/Presentations/11
Does IT Capability Matter? The Influence of Slack Resources on Firm Performance
Previous empirical studies that examined the relationship between slack resources and firm performance are ambiguous. To gain insight into this relationship, the current study draws upon the resource orchestration perspective and proposes that the combination of slack resources and IT capability ultimately results in superior firm performance. Specifically, the current study adopts publicly available ratings and matched sample comparison group methodology to assess IT capability. By analyzing the unbalanced panel data of 546 manufacturing industrial firms from 2006 to 2008, this study presents an in-depth comparison between IT leaders and their counterparts. The analysis confirms that IT capability negatively moderates the positive relationship between available slack resources and firm performance but positively moderates the negative relationship between recoverable slack resources and firm performance and positively moderates the negative relationship between potential slack resources and firm performance. This paper discusses about the theoretical contributions and practical implications of the study.