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How do IT investments interact with other resources to improve innovation?

Luis Antonio Orozco, John Alirio Sanabria, Juan Camilo Sosa, Jeimy Aristizabal and Liliana López

Journal of Business Research, 2022, vol. 144, issue C, 358-365

Abstract: Skilled labor, R&D, and knowledge-based inter-organizational networks are important resources for innovation. The relationship between information technology (IT) investments and innovation outcomes is less well understood. It is unclear whether IT investments act as substitutes for or complements of these other resources to create innovation capabilities, and how such relationships play out over time. Based on panel data from 393 Colombian manufacturing firms between 2009 and 2017, we found that while IT investments alone do not improve innovation performance over time, they do when they are combined with the presence of an R&D unit. Furthermore, we found that IT investments substitute for (rather than complement) skilled labor to improve innovation performance over time and that their interaction with networks does not significantly affect innovation performance. Our findings contribute to the innovation literature on dynamic capabilities in understanding the role of IT in the combination of resources from a longitudinal perspective.

Keywords: IT investment; Innovation; R&D; Human capital; Networks; Colombia (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:144:y:2022:i:c:p:358-365

DOI: 10.1016/j.jbusres.2022.01.078

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