Business value of IT capabilities: effects on processes and firm performance in a developing country

Abstract

Purpose:

This article proposes an integrated three-stage model, which tests the impact of IT capabilities at the firm level.

Design/methodology/approach:

The measurement model was constructed from the following research phases: i) assessment of the variables by experts in the fields of IS and business; ii) survey pretest; and iii) pilot survey. The full survey was applied to managers from IT and business fields in Brazil’s largest organizations, and was analyzed through Structural Equation Modelling.

Findings:

The results of the full survey allow us to conclude about the relationships that exist between IT capabilities, information quality and performance processes. Performance processes partially mediate the impact of IT capabilities on firm performance.

Originality/value:

The results presented contribute to the academic and management aspects, for they allow: i) to replicate the model in other research contexts (national, international) and evaluating incremental improvements of IT capabilities on firm performance; ii) the identification of intermediate performance indicators, associated with the use of IT, and the concentration of energy of organizations in the measurement of IT effects on business processes; iii) the adoption of the model for horizontal analysis of IT performance in large companies, from the perspective of business and IT managers.

Keywords:
IT benefits; IT return; Performance variables; Process and firm level; Value measurement