Abstract

Effective and efficient use of IT capability is a key factor for a firm to get competitive advantages. This paper develops the concept of IT-capability and it’s function mechanism, firm IT resources are classified as IT infrastructure, human IT resources, and IT relationship infrastructure as well as IT-Related capabilities. The paper discusses valuable, competitive, and dynamic capabilities as three related IT capabilities, and presents a model that describes relationship between these capabilities and competitive advantages. This study also interprets that a firm’s ability to effectively leverage its IT investments by developing a strong IT capability can result in improving firms performances, such as integration of customer relationship management (CRM), E-Supply chain management etc.

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