Title
An examination of the trade-off between internal and external IT capabilities
Abstract
The business case for hiring external IT consultants is compelling. Consultants can represent a rich source of valuable, short-term capabilities. From a resource-based perspective, however, the fungible nature of these capabilities argues against their long-term strategic value. Furthermore, IT consultants may be at odds with existing internal capabilities. Institutional theory suggests that external consultants may not share the same norms and beliefs held by the internal staff and consequently their efforts in achieving organizational goals may be diluted or compromised. This paper explores the tension between internal and external IT capabilities on the realization of enhanced IT productivity. Drawing on telephone survey data on the adoption of Internet business solutions, the results of the study show that firms see tangible benefits from using external IT consultants, but these benefits are moderated by the level of existing internal IT capabilities.
Year
DOI
Venue
2007
10.1016/j.jsis.2006.10.002
J. Strategic Inf. Sys.
Keywords
Field
DocType
external consultant,it capabilities,microeconomic theory,data envelopment analysis,internet business solution,external it consultant,complementarities,it consultant,external it capability,enhanced it productivity,transaction cost economics,institutional theory,business case,it consultants,internal staff,internal it capability,resource-based view,internal capability,data envelope analysis
Business case,Survey data collection,Transaction cost,Institutional theory,Resource-based view,Information technology,Knowledge management,Engineering,Database transaction,Marketing,The Internet
Journal
Volume
Issue
ISSN
16
1
Journal of Strategic Information Systems
Citations 
PageRank 
References 
21
0.90
34
Authors
3
Name
Order
Citations
PageRank
Saggi Nevo134718.74
Michael R. Wade230114.93
Wade D. Cook3121584.70