IT Business Value and Competitive Advantage: Integrating a Customer-Based View

Abstract

This research expands our understanding of IT value by adding a customer-based view (CBV) to the prevalent resource-based view (RBV). Founded on a template analysis, this article suggests an integrated definition for IT value consisting of two complementary facets: monetary customer value and non-monetary organizational value. Value from IT investments can have direct or indirect effects on firm performance. This research also discusses the relationship between IT value, firm performance, and competitive advantage.Abbreviation: CBV: Customer-based view; CI: Customer intimacy (customer-value category); ER: External relations (initial organizational-value category); ESC: Enhanced skills and capabilities (organizational-value category); FX/A: Flexibility, agility (organizational-value category); IS: Information systems; IT: Information technology; K/C: Knowledge and control (initial organizational-value category); OE: Operational excellence (customer-value category); PL: Product leadership (customer-value category); RBV: Resource-based view; SA/SR: Strategic alliances/supplier relationships (organizational-value category); SP/DM: Strategic planning/informed decision-making (organizational-value category)

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