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Linking routines to the evolution of IT capability on agent-based modeling and simulation: a dynamic perspective

Bing Bai (), Byungjoon Yoo, Xiuquan Deng (), Iljoo Kim and Dehua Gao
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Bing Bai: Jiangsu Normal University
Byungjoon Yoo: Seoul National University
Xiuquan Deng: Beihang University
Iljoo Kim: Saint Joseph’s University
Dehua Gao: Beihang University

Computational and Mathematical Organization Theory, 2016, vol. 22, issue 2, No 3, 184-211

Abstract: Abstract IT capability as an important source of competitive advantage has been strongly emphasized in the strategic management literature, yet the formation and evolution of IT capability in the ever-changing business environment are not well explained. To fill this gap, this paper takes routine as the unit of analysis, depicts a micro-interpretation of the formation and evolution of IT capabilities from the routine-based and dynamic perspective, and uses the agent-based simulation methodology to simulate the evolutionary process of IT capability as well as to identify the underlying principles. In order to provide a better presentation of the evolutionary process, a routine-based view of the enterprise explicitly recognizes relationships of IT resources and capabilities. The simulation results show that the evolution of IT capability is a dynamic adaption and learning process. From the routine-based view, the evolution of IT capability is indeed the process of variation, selection, and retention for IT routines.

Keywords: IT routines; IT resource; IT capability; Dynamic capability; Evolution; Agent-based simulation (search for similar items in EconPapers)
Date: 2016
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