INFORMATION TECHNOLOGY - STRATEGIC NECESS ITY OF SOURCE OF COMPETITIVE ADVANTAGE - AN EMPIRICAL-STUDY ON THE RETAIL SECTOR OF THE UNITED-STATES

This paper investigates the conditions under which the use of informat ion technology (IT) can produce performance advantages. Its contributi on lies in the resource theory-based conceptual synthesis and empirica l evidence that it provides to a still fragmented and insufficiently t ested IT literature. The empirical study takes place in the retail ind ustry and the findings show no correlation between ITs, in and of them selves, and performance. They show, however, that some retail firms ha ve gained advantages by combining IT with intangible, difficult to imi tate complementary resources, such as flexible culture, strategic plan ning-IT integration and supplier relationships. The findings support t he resource-based approach, and help to explain why some firms struggl e while others flourish with the same ITs, why IT-based advantages ten d to dissipate rapidly, and how firms can gain advantages by integrati ng IT with the appropriate complementary resources.