Business value of IT capabilities: effects on processes and firm performance in a developing country

Abstract

Purpose - This article proposes an integrated three-stage model, whichtests the impact of IT capabilities at the firm level.Design/methodology/approach - The measurement model was constructed fromthe following research phases: i) assessment of the variables by expertsin the fields of IS and business; ii) survey pretest; and iii) pilotsurvey. The full survey was applied to managers from IT and businessfields in Brazil's largest organizations, and was analyzed throughStructural Equation Modelling.Findings - The results of the full survey allow us to conclude about therelationships that exist between IT capabilities, information qualityand performance processes. Performance processes partially mediate theimpact of IT capabilities on firm performance.Originality/value - The results presented contribute to the academic andmanagement aspects, for they allow: i) to replicate the model in otherresearch contexts (national, international) and evaluating incrementalimprovements of IT capabilities on firm performance; ii) theidentification of intermediate performance indicators, associated withthe use of IT, and the concentration of energy of organizations in themeasurement of IT effects on business processes; iii) the adoption ofthe model for horizontal analysis of IT performance in large companies,from the perspective of business and IT managers.