Understanding the influence of information systems competencies on process innovation: A resource-based view

What is it about?

The resource based view of firms is used to explore how information system (IS) competencies affect process innovation in an organization. Data was collected through a case study of two process innovations at a healthcare firm in the United States. The findings illustrate how six IS competencies – Knowledge Management, Collaboration, Project Management, Ambidexterity, IT/Innovation Governance, Business-IS Linkages – can differentially affect the conception, development and implementation of process innovations. Implications for researchers and practitioners are drawn from these conclusions and suggestions for further research are proposed.

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Why is it important?

The ideas developed in this paper address an important theme in current IS research -- the importance of understanding how firms can acquire business value from their IT resources. The findings provide a backdrop against which practitioners can evaluate their organizations’ to (1) assess the readiness and ability of their IS to facilitate process innovation and (2) identify those IS competencies that are missing or need improvement.