Abstract
We investigate how IT-capability leads to more interaction business practices, both through inter-organizational systems (IOS) and social media (SM), and how they further lead to marketing effectiveness and firm success. After analyzing the data collected from manufacturers (N=504), we find that (1) IT capability has a significant positive effect on both IOS-enabled and SM-enabled interaction practices; (2) IOS-enabled interaction practice has significant positive effects on both marketing performance and financial performance, while SM-enabled interaction practice only has a significant positive effect on the market performance; (3) both IOS-enabled interaction practice and SM-enabled interaction practice partly mediate the positive influence of IT capability on marketing performance and financial performance; (4) marketing performance partly mediates the positive impact of IOS-enabled interaction practice and fully mediates the positive impact of SM-enabled interaction practice on financial performance.
Recommended Citation
Feng, Chao; Xi, Nannan; Zhuang, Guijun; and Hamari, Juho, "IT Capability and Firm Performance: The Mediating Roles of Interaction Praxis" (2019). AMCIS 2019 Proceedings. 1.
https://aisel.aisnet.org/amcis2019/strategic_uses_it/strategic_uses_it/1
IT Capability and Firm Performance: The Mediating Roles of Interaction Praxis
We investigate how IT-capability leads to more interaction business practices, both through inter-organizational systems (IOS) and social media (SM), and how they further lead to marketing effectiveness and firm success. After analyzing the data collected from manufacturers (N=504), we find that (1) IT capability has a significant positive effect on both IOS-enabled and SM-enabled interaction practices; (2) IOS-enabled interaction practice has significant positive effects on both marketing performance and financial performance, while SM-enabled interaction practice only has a significant positive effect on the market performance; (3) both IOS-enabled interaction practice and SM-enabled interaction practice partly mediate the positive influence of IT capability on marketing performance and financial performance; (4) marketing performance partly mediates the positive impact of IOS-enabled interaction practice and fully mediates the positive impact of SM-enabled interaction practice on financial performance.