Moderating Effects of IT Applications on IT Capability and Competitive Advantage

Abstract

Generally, this study aims to assist domestic companies to determine appropriate Information Technology (IT) applications to attain Competitive Advantage (CA). Specifically, this study aims to assess enhancement causes by IT applications between IT capability and CA. A new CA model by incorporating IT applications in organizations is then proposed. Pilot study was used to test a set of newly developed questionnaire prior to 500 Malaysian companies and 295 set of questionnaire were collected. Multiple group analysis of Structural Equation Modelling (SEM) was conducted to analyze the data collected from survey. Ten most regular utilized IT applications: (1) content management systems, (2) decision support tools, (3) document management tools, (4) email systems, (5) Intranet, (6) Internet access (7) knowledge base/repository, (8) search engine, (9) website content management and (10) workflow systems are supported having enhancement effects on IT capability and CA. This study implies a novel framework important for reaping CA. In addition to the literature of strategic management, this study would be a benefactor for domestic companies in adopting IT applications. The findings of this study can be generalized by other multi-ethnic, multi-cultural and developing countries.