Heteromorphism: beaconing IT innovations under institutional pressure towards unique capabilities
by Jerrel Leung; Waiman Cheung; Sung-Chi Chu
International Journal of Internet and Enterprise Management (IJIEM), Vol. 9, No. 1, 2018

Abstract: RFID innovations are often pursued due to institutional pressures. Consequently, many organisations end up with disappointing results. However, there are exceptions where organisations gain competitive advantages with RFID over time. We use two rather competing theories to explain the exceptional cases. Institutional theory discusses that organisations often imitate RFID pioneers due to an institutional pressure, which can lead to organisations turning homogeneous and causes disappointing results. Whereas, resource-based view explains that organisations can gain significant benefits by developing unique capabilities and become heterogeneous instead. We posit that organisations do not necessarily need to strike a balance between institutional and resource-based determinants, as suggested in the literature. The IT innovation process can be rather sequential, as can be observed with RFID innovations. An in-depth case study is leveraged to describe the process of turning an IT innovation under institutional pressure into unique capabilities.

Online publication date: Tue, 09-Apr-2019

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