The et al notice that firm should invest

The resource-based view is another
approach through which we can stipulate how to achieve competitive advantage.
The defenders of the theory say that there is higher possibility to achieve
competitive advantage and higher organizational performance with the
application of tangible and intangible resources when managing the
organization. If the organization wants to keep sustainable competitive
advantage, the quality of the resources it should posses are Heterogeneous and
Immobile. Barney (1991) said that the resources which are valuable should be
hard to be copied or imitated. If all these requirements are fulfilled, the
organization may achieve competitive advantage. In their works Crook et al
(2008) have confirmed with undisputed evidences which sustain the resource
based theory. The resource-based theory is also utilized in information system
research according to a research of Wade and Hulland (2004). They are
differentiated between resources which are separated into assets and
capabilities. As capabilities we can define skillful abilities and processes or
administrative abilities like system evolution or consolidation while in
opposition for assets we can specify all the tangible or intangible assets
which can help to the organization to utilize in its operations for developing,
creating or producing its particular products for the market. In the
investigation of Wade and Hulland 2004 the resources are identified to serve
the same way as the features which are used in the Information Systems.

Meta et al. talk about four
Information Technology resources which are capital requirements, technical IT
skill, proprietary technology and the last one is managerial IT skill. As a
result they come to a conclusion that only managerial IT skill the only way through
which a firm can gain competitive advantage through the resource-based theory.
Qi et al notice that firm should invest enormous efforts and time to gain
skills so as to get competitive IT resources. This can bring us to the
conclusion that IT can become a resource of competitive advantage. These four
theories we already counted in the paragraph bring significant and practical
value to explore how much the IT influence over competitive advantage.
Unfortunately each theory is concentrated over one aspect connected to IT’s
role and there is not enough studies which are clearly focused on the linkage
among the theories. Soh’s process model offers a way how to create business
value and also a guidance how to achieve sustainable competitive advantage. In
that model the important fact to mention is that IT capability is having
significant role in the ‘IT conversion process’ and ‘IT use process’.

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Significant role is having IT
capabilities because they are deployed into combination with other resources.
They are tightly connected with the history , culture and experience of the
organisations and all these components are difficult to be duplicated and
copied by the rivals on the market and they are good fundament for organization
to obtain competitive advantage. The strong capabilities of IT owned by firms
do not only increase the efficiency of the investments in IT but they turn into
IT resources. This helps firm’s resources to unify with its complementary
resources and brings to improved performance respectively to a sustainable
competitive advantage.

 

Conclusion

 

We can conclude that there are
controversy opinions ‘If IT matters or not’ and Nicolas Carr’s words have
provoked many debates upon that question. And it is obvious that he has made
lots of computers moguls exasperated and feeling uncomfortable. The VRIO
framework shows also that IT doesn’t bring competitive advantage to firms
because it is not valuable, rare and costly to be imitated. But from the last
paragraph we can see that managerial IT skill or with other words the human
factor can bring to the company competitive advantage. The IT capability theory
should be constantly  improved and updated through organizational learning
which will bring to effectively guidance for firms how to utilize IT and gain
competitive advantage. 

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