Can information technology be a source of competitive advantage?

Lidija Breznik

Abstract


It is still difficult to judge the effect of IT on business performance and competitiveness. Many scholars has sought to contribute by showing the impact of IT on firm performance, and emphasized its potential in creating a sustainable competitive advantage. A brief overview of the literature indicates that many perspectives have emerged, mainly due to different understandings and uses of approaches, methodologies and terminologies. This paper attempts to ascertain if IT can be a source of competitive advantage. We argue that IT can be a source of competitive advantage just like any other resource/capability can be. We suggest that the first step in further research is to clarify the terminology since it represents the foundation for building a coherent framework and the second is to look from the practitioner’s point of view to ensure greater understanding and usefulness for practitioners.


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