Virtual Communities and Collaborations


This study attempts to explain how physical and human IT resources deployed in inter-organizational relationships (IORs)affect IT-enabled capabilities of a firm. We classify the IT enabled-capability into two types such as relational-specificknowledge management (RKM) capability and absorptive capacity. In addition, this study suggests that RKM capability andabsorptive capacity lead to increased firm performance. Finally, we test the relationship of RKM capability and absorptivecapacity. A total of 119 responses were used for analysis. Our results demonstrate that a firm reinforces its capabilities suchas RKM capability and absorptive capacity by leveraging physical and human IT resources dedicated in IORs. This impliesthat IT resources in IORs play a key role in developing further capabilities related to improved firm performance.Furthermore, RKM capability developed in IORs directly affects absorptive capacity of a firm. Thus, firms make a constanteffort to develop IT-enabled capabilities beyond the deployment of IT in IORs.