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Complementarity Between Investment in Information Technology (IT) and IT Human Resources: Implications for Different Types of Firm Innovation
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2023 | Information Systems Research | Citations: 0
Authors: Guo, Feng; Li, Yijun; Maruping, Likoebe M.; Masli, Adi

Abstract: It is well acknowledged in the information systems (IS) literature that informat ... Expand

Abstract: It is well acknowledged in the information systems (IS) literature that information technology (IT) plays an important role in firm innovation. A small but growing body of empirical evidence points to the importance of IT employees as an important complementary resource, particularly for IT-related innovation. However, there is an open question as to whether investment in such resources is complementary across a range of innovation types. This research note aims to provide theoretical and empirical clarity by emphasizing the complementary nature of firm investment in IT and in IT human resources (HR) in affecting firm innovation performance across four types of innovation: incremental, radical, non-IT related and IT related. Drawing on the theory of complementarities and theorizing about the operand and operant nature of resources, we argue that firm investment in IT HR enables firms to gain additional innovation value from their IT investments and vice versa. Using a sample involving 36,812 firm-year observations, we find that firms with robust investments in IT and in IT human resources produce more patents with greater value. Furthermore, we find that such firms produce more patents that emphasize new knowledge and those that build on existing knowledge. Finally, we find that this complementarity promotes IT-related and non–IT-related innovation. A series of analyses demonstrate the robustness of these results. We discuss implications for theory and practice. History: Yulin Fang, Senior Editor; Monideepa Tarafdar, Associate Editor. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1185. Collapse

Semantic filters: economic theory of complementarity

Topics: innovation management IT investment IT workforce research and development information technology capability

Methods: theory development robustness check longitudinal research survey sensitivity analysis

Theories: economic theory of complementarity
How Human Resource and Information Systems Practices Amplify the Returns on Information Technology Investments
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2022 | Journal of the Association for Information Systems | Citations: 0
Authors: Tafti, Ali; Rahmati, Pouya; Mithas, Sunil; Krishnan, M. S.

Abstract: This study examines the important roles that human resources (HR) for informati ... Expand

Abstract: This study examines the important roles that human resources (HR) for information technology (IT) professionals and information systems (IS) practices for all workers in an organization play in shaping returns on firms' IT investments. In particular, we consider how incentives, autonomy, and training for IT professionals can enable a firm to better leverage the value of its IT investments. We argue that well-trained, motivated, and empowered IT professionals can help firms make better strategic choices in allocating IT investments and implementing IT projects. We also demonstrate how this moderating relationship depends upon collaborative IS and autonomy-enhancing IS practices that affect other knowledge workers in the firm. We leverage archival data for 228 firms with 736 firm-year observations and document two key findings. We find (1) that empowering HR practices for IT professionals positively moderate the effect of IT investments on firm performance, and (2) that the alignment between empowering HR practices for IT professionals and firm-wide collaborative IS practices enhances the value that firms derive from IT investments. Our results suggest that the business value of IT investments is linked to the rewards and opportunities offered to IT professionals, who have a pivotal role in the effective deployment of IT in organizations. Collapse

Semantic filters: economic theory of complementarity

Topics: IT investment IT workforce computer supported cooperative work organizational productivity organizational value

Methods: survey Compustat sensitivity analysis instrumental variables estimation archival research

Theories: economic theory of complementarity
An Adaptive Systems Approach to Clinical Performance During the COVID-19 Pandemic

2021 | Americas Conference on Information Systems | Citations: 0
Authors: Killoran, Jayson

Abstract: The purpose of this research proposal is to study emerging interactions between ... Expand

Abstract: The purpose of this research proposal is to study emerging interactions between healthcare workers and artificial intelligence (AI)-enabled resources for clinical performance during the COVID-19 pandemic. AIenabled resources are technologies that think, learn, and respond similarly to humans, which have been increasingly adopted and implemented in healthcare settings for COVID-19 detection, patient monitoring, contact tracing, mortality projection, and drug and vaccine development. Using complex adaptive systems theory and the theory of complementarities, this research will investigate interactions between human actors and AI-enabled resources across task structures and task goals for enhanced clinical performance. This study will use semi-structured interviews to qualitatively examine health workers' adaptations and interactions with AI-enabled resources, which has important implications for research and practice. Collapse

Semantic filters: economic theory of complementarity

Topics: artificial intelligence pandemic human computer interaction health information system human AI collaboration

Methods: qualitative interview theory development personal interview

Theories: economic theory of complementarity complex adaptive system
Portfolio effects of knowledge management strategies on firm performance: Complementarity or substitutability?
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2021 | Information & Management | Citations: 0
Authors: Kim, Tae Hun; Choi, Byounggu; Lee, Jae-Nam; Sambamurthy, Vallabh

Abstract: To investigate the mutual effects of knowledge management (KM) strategies on fir ... Expand

Abstract: To investigate the mutual effects of knowledge management (KM) strategies on firm performance, we categorize the portfolios of KM strategies into four patterns: unrelated (scope- and type-based), related, extended, and high diversity portfolios. An inverted U-shaped relationship of KM diversity and firm performance is proposed across the portfolios based on the underlying cost–benefit tradeoffs. Supermodularity test results indicate that strategies of unrelated diversity portfolios show substitutable effects, whereas strategies of related diversity portfolios have complementary effects on firm performance. While strategies of extended diversity portfolios exhibit mixed re sults with complementary and substitutable effects, strategies of high diversity portfolio exhibit a substitutable effect. Our findings indicate that multiple KM strategies, as a firm’s portfolio, mutually generate complemen tarities or cause substitutabilities in improving firm performance. We also discuss practical implications for managerial decisions on successful KM. Collapse

Semantic filters: economic theory of complementarity

Topics: knowledge management strategy organizational productivity organizational memory personalization usability

Methods: survey statistical hypothesis test theoretical contribution robustness check company material

Theories: economic theory of complementarity
Complementarities for IT Business Value of Firms: Synthesis for Future Empirical Work

2021 | Americas Conference on Information Systems | Citations: 0
Authors: Zhang, Wei; Rai, Arun

Abstract: The theory of complementarities is a significant lens for research on IT busine ... Expand

Abstract: The theory of complementarities is a significant lens for research on IT business value. We review extant empirical research in this stream of literature, focusing on how IT generates business value for firms through complementarities. Our goals are to establish a common vocabulary for scholars interested in this line of research, describe the main patterns in previous studies, and derive implications for future research. First, we identify relevant papers in four premier IS and management science journals. Second, we develop a coding scheme that differentiates between types of complementarities, factors to which the complements belong, the context in which the complements function, and the scope of the value system in which the complements are situated. Third, we review the studies based on the coding scheme, discuss the findings from the synthesis, and conclude with implications on how complementarities can guide future research on IT business value at the firm level. Collapse

Semantic filters: economic theory of complementarity

Topics: IS value supply chain management organization structure IT investment competitive advantage

Methods: qualitative coding literature sample synthesis statistical hypothesis test theory development

Theories: resource based view of the firm economic theory of complementarity
The Whole is Greater than the Sum of its Parts – Synergies between Non- Digital and Digital Business Models within Companies

2020 | HICSS | Citations: 0
Authors: Toutaoui, Jonas; Benlian, Alexander

Abstract: Digital transformation is increasingly becoming a major concern for established ... Expand

Abstract: Digital transformation is increasingly becoming a major concern for established companies. Part of the digital transformation is often the creation of new business models based on digital technologies, which do not replace the established business model but act as additional source of revenue. Two concurrent business models within one company creates the opportunity of synergies between these business models. However, knowledge on interactions between two business models, specifically digital and nondigital, remains in an embryonic stage. This multicase study, based on companies from various industries and size, addresses this shortcoming. Following the business model canvas and the theories of resource relatedness and complementarity, we show how both business models can propel each other thanks to value and cost synergies between them. Finally, we offer rich insights for practitioners on what type of synergies they can benefit from and present guidelines they can use to identify and unlock these synergies. Collapse

Semantic filters: economic theory of complementarity

Topics: business model digital platform digital business model digital transformation digital ecosystem

Methods: qualitative interview theoretical contribution case study qualitative coding longitudinal research

Theories: economic theory of complementarity
Revisiting the Impact of System Use on Task Performance: An Exploitative-Explorative System Use Framework
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2019 | Journal of the Association for Information Systems | Citations: 0
Authors: Sun, Heshan; Wright, Ryan T.; Thatcher, Jason B.

Abstract: How information systems impact task performance has attracted a significant amou ... Expand

Abstract: How information systems impact task performance has attracted a significant amount of attention from information systems researchers and generated high interest among practitioners. A commonly accepted view is that the potential of information systems must be realized through system use. Nevertheless, existing findings regarding the impact of system use on task performance are not yet conclusive. We attributed this to the various conceptualizations of system use and the unclear mechanisms through which system use influences task performance. Thus, this research attempts to create a better understanding of how system use influences task performance. To this end, we developed an exploitative-explorative system use framework in order to reconcile the various conceptualizations of system use and to depict how both exploitative and explorative system use influences task performance through impacting task innovation, management control, and task productivity. We created an instantiation of the framework using USAGE (exploitative system use) and adaptive system use (ASU, explorative system use). We conducted two empirical studies involving two different populations and using two different technologies. The first study consisted of 212 experienced users of MS Office, whereas the second study employed 372 new users of a video-editing tool. Our findings offer insight into how exploitative system use and explorative system use independently and jointly influence task performance constructs and also have implications for research and practices. Collapse

Semantic filters: economic theory of complementarity

Topics: information system use task productivity innovation management self efficacy customer service

Methods: post-hoc analysis statistical power analysis design artifact survey regression analysis method

Theories: economic theory of complementarity
Finding the Next Unicorn: When Big Data Meets Venture Capital

2019 | HICSS | Citations: 0
Authors: Weibl, Johannes; Hess, Thomas

Abstract: Venture capital (VC) has been growing rapidly in recent years. So far the screen ... Expand

Abstract: Venture capital (VC) has been growing rapidly in recent years. So far the screening and evaluation of potential startups as investment objects largely depends on the venture capitalist’s personal experience, network and qualitative evaluations. In the era of big data, the advent of new data sources and analytic techniques enables a data-driven investment process. Grounded in systems theory and the theory of complementarity, this study reports the findings from an exploratory study of 13 VC firms that synthesize and use novel data sources. Our analysis shows that the data-driven approach, in particular, impacts the deal origination and screening stages of investment. It leads to informational and transactional benefits, which lower operational costs in the short term and enlarge the potential return on investment of a VC firm in the long term. We contribute to the literature by shedding light on how various data sources complementarily lead to additional business value. Collapse

Semantic filters: economic theory of complementarity

Topics: big data organizational value operational information system customer relationship management system website

Methods: qualitative interview qualitative coding synthesis personal interview company material

Theories: general systems theory economic theory of complementarity
Interconnectivity of Big Data Sources: Exploring Synergistic Relationships among Data

2019 | HICSS | Citations: 0
Authors: Weibl, Johannes

Abstract: In recent years, organizations manage an increasing amount of data in order to m ... Expand

Abstract: In recent years, organizations manage an increasing amount of data in order to make better decisions, personalize products, or sell data. By data being combined from various sources, data assets interact with each other. When the interactions are synergistic, they create greater benefits than the sum of the value of the individual data assets. This study explores enablers, mechanisms, and potential outcomes of synergistic interactions among data assets. Based on systems theory and a synthesis of relevant synergy literature, I developed an initial synergy framework in a data context. On this basis, I conducted 14 qualitative interviews to assess the validity of my initial framework. The interview results assisted me in refining and contextualizing a unified conceptual framework of data synergies. The paper reveals that compatibility and contextual relatedness as enablers and informational complementary as a mechanism can lead to super-additive information value among data assets. Collapse

Semantic filters: economic theory of complementarity

Topics: big data organizational value analytical information system procurement management electronic commerce

Methods: qualitative interview qualitative content analysis conceptual modelling personal interview qualitative coding

Theories: general systems theory economic theory of complementarity
Why Increased Use of IT can be Beneficial or Damaging? Insights from the Puzzle of IT Use and Managerial Expertise for Internal Controls

2018 | International Conference on Information Systems | Citations: 0
Authors: Sambhara, Chaitanya; Rai, Arun; Xu, Sean Xin

Abstract: Motivated by the puzzle that increased use of IT may not always be beneficial, a ... Expand

Abstract: Motivated by the puzzle that increased use of IT may not always be beneficial, and sometimes can even be damaging, we examine how the use of enterprise systems (ES) in a focal business process can be combined with competence in the business domain and the use of complementary enterprise systems in other process domains to achieve process performance objectives. Drawing on the resource-based theory, theory of complementarities, and the process-mediated IT business value perspective, we develop a model to explain the mechanisms through which Accounting Enterprise Systems (AES) in combination with other complementary enterprise systems (CES) and non-IT (accounting managerial competence) resources can enable a firm to develop capable managerial and operational internal control processes. We test the model using a sample of 251 firms’ data from 2004 through 2009 periods. We find evidence that increased use of IT can be counter-productive for firms that do not possess necessary managerial competence in the domain within which IT is being used. We find three key effects through which the increased use of ES can lead to an improvement or deterioration of internal controls: (1) technology enablement effect, (2) suppressive effect of the supporting technology, and (3) countervailing knowledge effect. Collapse

Semantic filters: economic theory of complementarity

Topics: accounting business process management enterprise information system organizational value information system use

Methods: difference in differences Lagrange multiplier test robustness check statistical hypothesis test longitudinal research

Theories: economic theory of complementarity resource based view of the firm

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Found 31 articles

Complementarity Between Investment in Information Technology (IT) and IT Human Resources: Implications for Different Types of Firm Innovation

How Human Resource and Information Systems Practices Amplify the Returns on Information Technology Investments

An Adaptive Systems Approach to Clinical Performance During the COVID-19 Pandemic

Portfolio effects of knowledge management strategies on firm performance: Complementarity or substitutability?

Complementarities for IT Business Value of Firms: Synthesis for Future Empirical Work

The Whole is Greater than the Sum of its Parts – Synergies between Non- Digital and Digital Business Models within Companies

Revisiting the Impact of System Use on Task Performance: An Exploitative-Explorative System Use Framework

Finding the Next Unicorn: When Big Data Meets Venture Capital

Interconnectivity of Big Data Sources: Exploring Synergistic Relationships among Data

Why Increased Use of IT can be Beneficial or Damaging? Insights from the Puzzle of IT Use and Managerial Expertise for Internal Controls