Abstract

The business value of IT is a central tenet of IS research. In this regard organizational IT capabilities are identified as a significant impact factor for performance and competitive advantage. Based on the dynamic capabilities view, this paper aims at extending existent research on IT capabilities and performance by incorporating innovation capability as a substantial driver of long-term performance. However, existing research falls short in investigating these relationships over time. To address these issues, several propositions are developed to link IT capability, innovation capability and long-term performance. This work aims at revealing the interdependencies among IT and innovation capability and to shed light on the temporal effects such as lag effects between investments into IT- and innovation capability and their effect on long-term performance.

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