Title: An empirical study on the relationship among IT capabilities, business process and firm's performance

Authors: Kaushik V. Pandya; Arun Sukumar; Vahid Jafari-Sadeghi; Richard Tomlins

Addresses: Sheffield Business School, Sheffield Hallam University, City Campus, Howard Street, Sheffield, S1 1WB, UK ' International Centre for Transformational Entrepreneurship, Coventry University, Sir William Lyons Building, Far Gosford Street, Coventry, CV1 5DL, UK ' School of Strategy and Leadership, Faculty of Business and Law, Coventry University, William Morris Building, Gosford Street, Coventry, CV1 5DL, UK ' International Centre for Transformational Entrepreneurship, Coventry University, Sir William Lyons Building, Far Gosford Street, Coventry, CV1 5DL, UK

Abstract: This study investigates the influencing mechanism between IT capabilities and the firm's performance. We believe that business process is the principal factor and suggest that IT capabilities improve business process and subsequently enhance the firm's performance. The study of the underlying factors among IT capabilities, business performance, and firm's performance is considered rare and although some researchers have introduced conceptual models and empirical tests, they are not able to support the cumulative model. It is found out that IT capabilities have a significant and positive relationship to the firm's performance. Besides, business process reengineering, and process efficiency contribute more to this relationship by mediating effect. This study will benefit business researchers, strategic researchers and managers in various industries because this will contribute to a better understanding of IT capabilities, business process, and firm's performance to a greater extent and provide fundamentals for strategic decisions in IT investments of a firm.

Keywords: information technology; IT capabilities; managerial IT capability; technical IT capability; business process; firm's performance.

DOI: 10.1504/IJTTC.2021.120199

International Journal of Technology Transfer and Commercialisation, 2021 Vol.18 No.4, pp.347 - 367

Received: 13 Jul 2020
Accepted: 13 Jul 2020
Published online: 11 Jan 2022 *

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