IT-enabled dynamic capability on performance: An empirical study of BSC model

Abstract

Few studies have investigated the influence of "information capital," through IT-enabled dynamic capability, on corporate performance, particularly in economic turbulence. Our study investigates the causal relationship between performance perspectives of the balanced scorecard using partial least squares path modeling. Using data on 845 Brazilian companies, we conduct a quantitative empirical study of firms during an economic crisis and observe the following interesting results. Operational and analytical IT-enabled dynamic capability had positive effects on business process improvement and corporate performance. Results pertaining to mediation (endogenous variables) and moderation (control variables) clarify IT's role in and benefits for corporate performance.