Mechanisms Underlying IT-Enabled Business Innovation: Review, Theoretical Framework, and Epirical Analyses.

Abstract

The role of Information Technology (IT) in business innovation is important, yet relatively understudied in the extant Information Systems (IS) literature. This dissertation focuses on mechanisms underlying IT-enabled Business Innovation (ITeBI).

In Chapter 1, I conceptually explore the role of IT in business innovation. I review the literature at the nexus of IT and business innovation. Drawing on prior literature, I then propose a theoretical framework linking aspects of a firm’s technical and social architecture and IT-enabled business innovation. Subsequently, I identify and suggest research directions to explore the role of IT in business innovation.

In Chapter 2, from a social perspective of ITeBI and drawing on organizational theory of boundary-spanning leadership, I examine the role of the leader of the IT organization, the Chief Information Officer (CIO) in ITeBI. I empirically examine how the CIO’s role pertaining to entities and functions outside the IT organization explains the firm’s propensity for ITeBI. Empirical findings indicate that ITeBI is more likely when the CIO reports to the Chief Executive Officer, has greater interaction with the firm’s customers, and is more involved in product development.

In Chapter 3, from a technology perspective of ITeBI and drawing on organizational knowledge creation theory, I conceptualize Web 2.0 technologies as facilitators of knowledge creation, improving firms’ propensity for ITeBI. I further posit that use of Web 2.0 technologies improves firms’ propensity for IT-enabled customer-centricity. I contend that these relationships are reinforced by a flexible interoperable IT architecture, Services-Oriented Architecture (SOA) and are mediated by improved information integration across the firm. Empirical findings largely support theoretical predictions.

Chapter 4 concludes the dissertation by tying back the findings from the empirical studies to the theory in Chapter 1. This chapter also suggests future research in the area of IT-enabled business innovation.

Taken together, this dissertation sheds light on selected mechanisms linking IT and business innovation, with specific focus on the CIO role and IT architecture (Web 2.0, SOA and integration).