Business value of information technology (BVIT): Exploring attained and sustained BVIT

The dependent variable BVIT (business value of information technology) has been a point of significant debate among IT researchers and has proved to be difficult to operationalize [Wade and Hulland 2004]. Past IT research which was concentrated on conceptualizing or measuring BVIT, paid little attention to the multifarious perspectives of BVIT, both from the time-series aspect as well as from the multi-discipline nature of BVIT existence. Practically, IT researchers have tended to construct BVIT from RBV (resource-based view) elements, which cannot cover its broad nature, or to adopt a relatively narrow definition, which usually uses specific BVIT proxy measurements as growth rate, profitability or perceived corporate performance. This paper defines and explores two new major sub-variables for BVIT, Attained (short-term) BVIT and Sustained (long-term) BVIT, constructed on the fundamental theory of RBV and connected to the groundwork of SAM (strategic alignment model). Attained-BVIT can be originated in an ex-ante position to the firm's perceived performance and given competition, in which case IT investments can influence assets utilization, improve efficiencies, enhance short term-duration of competitiveness and reinforce endogenous firm manageability. Sustained-BVIT can be originated in an ex-post position to the firm's actual performance and evolving competition, in which case IT investments can leverage resources to form unique advantages, improve firm effectiveness, enhance long term-duration of competitiveness above IAE (industry average earnings), and can enrich the firm agility to cope with exogenous dynamic competitive forces.