An Empirical Study of the Effect of IT-enabled Organizational Intangibles on Competitive Advantage and Performance

Ehsan Ali Alqararah, Wan Mohd Nazri Bin Wan Daud

Abstract


IT-enabled organizational intangibles have been identified as key drivers of potential business value, mainly superior customer orientation, synergy, and intellectual capital through embedded superior skills in knowledge assets in environmental changes appropriately. This study aims to examine the effect of IT-enabled organizational intangibles on competitive advantage and organizational performance during the time period (2014 - 2019) in the Jordanian banking sector. IT-enabled organizational intangibles of the respective banks can be practiced to generate a competitive advantage and improve performance. Additionally, the study contributes to knowledge by demonstrating how IT-enabled organizational intangibles as a resource could create a competitive advantage in light of the resource-based view (RBV) theory of the firm. Thus, to achieve the research objective, a quantitative approach using a questionnaire was employed to collect data from 16 Jordanian banks; the targeted population is 853 of the Jordanian banks' managers. The empirical results showed that there is a positive impact of IT-enabled organizational intangibles on the competitive advantage and performance through playing enabling functions by promoting/leveraging the organization's resources and capabilities. Another explanation is that in the context given, IT-enabled organizational intangibles are used to fulfill cost and demand synergies and provide flexibility to create competitive value, which in turn responds to market needs quickly.

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