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

Hanan Maoz, Lior Fink, Nava Pliskin, Tsipi Heart

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations

Abstract

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.

Original languageEnglish
Title of host publicationProceedings of the European and Mediterranean Conference on Information Systems, EMCIS 2007
Pages331-3311
Number of pages2981
StatePublished - 1 Dec 2007
Event4th European and Mediterranean Conference on Information Systems, EMCIS 2007 - Valencia, Spain
Duration: 24 Jun 200726 Jun 2007

Publication series

NameProceedings of the European and Mediterranean Conference on Information Systems, EMCIS 2007

Conference

Conference4th European and Mediterranean Conference on Information Systems, EMCIS 2007
Country/TerritorySpain
CityValencia
Period24/06/0726/06/07

Keywords

  • Attained BVIT
  • Business value of IT (BVIT)
  • Competitive advantage
  • IT resources
  • IT strategy
  • Information technology (IT)
  • Organizational strategy
  • Resource based view (RBV)
  • Strategic alignment
  • Sustained BVIT
  • Sustained competitive advantage

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