2003SSRN Electronic JournalOpen access

Determinants of a Sustainable Competitive Advantage Due to an IT-Enabled Strategy

Bruce Dehning, Theophanis C. Stratopoulos

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Abstract

Information technology (IT) has been asserted to be a source of sustainable competitive advantage. Empirical evidence has shown that IT can improve a company's performance and competitive position. We examine the factors that are believed to lead to a sustainable competitive advantage due to an IT-enabled strategy, and test these factors empirically. Our findings show that managerial IT skills are positively related to sustainability, and competitor's knowledge of competitive advantage is negatively related to sustainability. There was no support for technical IT skills or IT infrastructure as a source of sustainable competitive advantage.

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What this paper is about

Information technology (IT) has been asserted to be a source of sustainable competitive advantage. Empirical evidence has shown that IT can improve a company's performance and competitive position. We examine the factors that are believed to lead to a sustainable competitive advantage due to an IT-enabled strategy, and test these factors empirically. Our findings show that managerial IT skills are positively related to sustainability, and competitor's knowledge of competitive advantage is negatively related to sustainability. There was no support for technical IT skills or IT infrastructure as a source of sustainable competitive advantage.

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Available abstract

Information technology (IT) has been asserted to be a source of sustainable competitive advantage. Empirical evidence has shown that IT can improve a company's performance and competitive position. We examine the factors that are believed to lead to a sustainable competitive advantage due to an IT-enabled strategy, and test these factors empirically. Our findings show that managerial IT skills are positively related to sustainability, and competitor's knowledge of competitive advantage is negatively related to sustainability. There was no support for technical IT skills or IT infrastructure as a source of sustainable competitive advantage.

Key concepts: Competitive advantage, Business, Sustainability, Industrial organization, Position (finance), Empirical evidence, Knowledge management, Marketing

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