Competitive advantage and simultaneous mutual influences between information technology adoption and service innovation: Moderating effects of environmental factors

Chia-Nan Chiu and Cheng-Liang Yang

Structural Change and Economic Dynamics, 2019, vol. 49, issue C, 192-205

Abstract: Although the effect of information technology (IT) adoption on competitive advantage is well documented, the mechanism that explains this effect and the magnitude of the effect that is contingent on other variables remain unclear. The objective of this study is to quantify the reciprocal causation between IT adoption and service innovation, determine the respective roles of service innovation and IT adoption in competitive advantage and to estimate the moderating effects of environmental factors. Data analysis reveals a bidirectional relationship between IT adoption and service innovation. In contrast to the findings of most related studies, service innovation has a positive effect on competitive advantage; however, IT adoption has a negative effect on competitive advantage. A high level of environmental factors is more likely to increase the positive effect of service innovation on competitive advantage, but it is also more likely to decrease the negative effect of IT adoption on competitive advantage.

Keywords: Information technology adoption; Service innovation; Environmental factor; Competitive advantage; Simultaneous reciprocal influences (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0954349X17301947
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:49:y:2019:i:c:p:192-205

DOI: 10.1016/j.strueco.2018.09.005

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().