The Dynamic Information Technology Capability and Firm Performance: A Resource-Based Perspective

The evolution of information technology (IT) applications in firms can be captured in some stages, and each stage displays distinct characteristics regarding the application of IT and has different objectives. Thus, the different IT capabilities are needed in the different stages. The purpose of this paper is to develop the theoretical links between IT capability and the stage of firm's using IT. Based on resource-based view, a model linking the level of IT capability with the stage of IT applications is built in this paper. Then, using the revised balance scorecard, two hypotheses are produced. In order to gain higher performance, firms must cultivate and advance its IT capability dynamically according the evolution of IT applications