Information Technology Capabilities and Firm Performance: A Meta-Analytic Synthesis

This project aims to increase the understanding of how different dimensions of information technology (IT) capabilities are related to different firm performance facets. Previous research has found that IT capabilities significantly improve firms’ economic performance. However, primary studies have often operationalized and labeled the various IT capability dimensions in different ways, making it difficult to synthesize existing findings. Furthermore, previous studies are characterized by inconclusive results, showing variation in the direction and magnitude of effect sizes. As a result, we lack a comprehensive understanding whether, to which degree, how, and when IT capability dimensions are associated with different firm performance outcomes.

The main objectives of this project are fourfold. First, we utilize a systematic review to integrate and categorize different IT capability dimensions. As a result, we provide a more systematic and complete conceptualization of the IT capabilities construct. Second, based on the developed categorization we meta-analytically synthesize the existing results for the main categories of IT capabilities, providing more accurate estimates of the average effect sizes of different categories of IT capabilities. Third, based on the bivariate meta-analytic findings and the intercorrelations we use commonality analysis to examine the unique and shared relationships of IT capabilities and firm performance. In this way we provide a more nuanced and holistic understanding of the unique contribution of each IT capability and the variance in firm performance that is explained jointly by different sets of categories. Finally, we use moderator analysis to assess the boundary conditions that may account for the variability in the direction and magnitude of effect sizes.