Comparative study of obtaining competitive advantage from information technology

Abstract

Researches on IT and competitive advantage have shifted from strategic information system, the tool to gain competitive advantage, to information technology capabilities inside the firms. The aim of this shift lies in how to gain sustained competitive advantage (SCA). The paper provides a brief review of these two perspectives guiding IT for competitive advantage. First, the means and its problems of attaining competitive advantage through strategic information systems are analyzed. Second, a typology of key IS resources is presented from resource-based view of firms. And then we compare and contrast them with one another using six resource attributes of value, rarity, appropriability, instability, substitutability and mobility. Third, we explain the mechanism that IS resources act on firm performance. Finally, the structure of information technology capabilities is briefly discussed.