Abstract

This paper presents an empirical study that examines the effects of dynamic IT capability and organizational culture on firm performance. More specifically, this study investigates the main effects of dynamic IT capability on firm performance, the main effects of organizational culture on firm performance, and the interaction effects between the two factors on firm performance. Adopting the Resource-Based View (RBV) of the firm, dynamic capabilities theory, complementarity theory, and organizational culture theories, this multidisciplinary study uses survey method to collect data. This study finds that dynamic IT capability and organizational culture jointly predict firm performance. This research makes a contribution to both academic research and management practice. Theoretically, this study integrates multiple theories to provide a better IT business value model; practically, this study provides leaders in industry with useful advice on IT/IS strategy and IT investment decision-making.

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