Theoretical Model And Empirical Study On Absorptive Capacity Of Information Technology

Information technology (IT) plays more and more important role in organizational strategy and many firms have adopted IT, however the application performance of IT has usually been far from expectation. Many researches proved that the reason for―IT investment black hole‖lies in that IT is actually not effectively absorbed or applied by the firm after invested(adopted), which means an―assimilation gap‖. How to promote the deeper assimilation and application of IT within the firm, which is called IT absorption, has become a hot topic which has received much attention in the information system (IS) field.The existing literature on IT absorption mainly analyzed IT adoption or/and implementation from innovation diffusion perspective. The literature could be categorized into process study and factor study. Process studies focused on adoption or/and implementation stage, lacking analysis on the whole dynamic process of technology absorption especially on how to deeply assimilate and integrate the IT after adoption, thus can not conform to the complexity and dynamics of IT absorption process, and hard to explain the deep assimilation and infusion of IT. The factor studies paid more attention to the external factors such as IT characteristics, lacking investigation on internal factors of organization, and hard to offer realistic guidance for the IS construction of enterprises. Therefore, it is necessary to build a more comprehensive framework and explore the mechanism of IT absorption from the comprehensive perspective of organizational internal factors and dynamic process.As a loading entity of managerial thoughts and management system, IT absorption not only needs the purchase of software and hardware, more importantly, it is a process in which external knowledge is internalized and internal knowledge is created. This process demands the firm acquire, digest and utilize new knowledge continuously, and this dynamic capability is called IT absorptive capacity. The concept of absorptive capacity is helpful for us to get rid of the static researches on influential factors of IT absorption. And from a dynamic perspective to investigate the IT absorption behaviors , this approach has better explanation power than the traditional approach of innovation diffusion theory for the organization to absorption of complex IT.This dissertation studied how to foster the deeper absorption and application of IT from dynamic capability perspective, mainly focusing on the flowing four contents: first, the concept and dimension of IT absorptive capacity; second, why some firms have stronger IT absorptive capacity than other firms, that is, the influential factors of IT absorptive capacity; third, the impact mechanism of absorptive capacity on promoting IT absorption; fourth, the formation and evolution mechanism of IT absorptive capacity, which is a foundation for putting forward the promotion approach of IT absorptive capacity.For details, the innovation points of this dissertation mainly are represented by the following aspects: Firstly, this dissertation analyzed how to promote organizational IT absorption from absorptive capacity view, which extends a new research perspective for IS field and resolves the problem of existing literature lacking in study on the endogenous factor. Based on the dynamic capability theory and―process/capability stream‖, it proposed the concept of IT absorptive capacity. It examines and explains enterprise IT absorption from the perspective of dynamic capability, which gets rid of existing static study of the influential factor of IT absorption.This dissertation made a significative exploratory study on applying absorptive capacity in IT context. It opens a new perspective for IS researches, meanwhile, it promotes the study on absorptive capacity theory. It regarded IT absorptive capacity as a key dynamic capability. After distinguishing the definition method of―process/structure view‖and―process/capability stream‖, it suggested―process/capability stream‖is more helpful in revealing the essential of absorptive capacity; and thus built a dynamic process model of IT absorption which could reflect the dynamics and feedbacks of organizational IT absorption, then deeply discussed the whole process of IT absorption and the main activities and behaviors of the main participants of each stage. Based on IT absorption process, this dissertation defined IT absorptive capacity as―a dynamic capability with which the enterprise adopts, implements IT, and infuses it into the organization‖, and thus further discussed its essence and features, suggesting that IT absorptive capacity is domain-specific and path-dependent. This study of IT absorptive capacity concept and connotation supplys a theory basis for further research, and could be used for reference for related research.Secondly, this dissertation explored the dimensions of IT absorptive capacity from a process view. Focusing on its multi-dimensional structure, it developed a measurement system of IT absorptive capacity, and effectively overcame the current researches which can not master the rich meanings and multi-dimensional features of IT absorptive capacity concept. Then it used the survey data to test the relationships among each dimension of IT absorptive capacity and explored the logic relationship among them.Based on the relevant researches and the existing literature on the dimension division of absorptive capacity and IT absorption, this dissertation primarily divided the dimensions of IT absorptive capacity from process perspective. Using the relevant study on the measurement method for reference, it designed a measurement index system for IT absorptive capacity; then it made an exploratory factor analysis on IT absorptive capacity by virtue of collected data. According to the result of data analysis, the dissertation summarized and corrected the dimension division and finally divided IT absorptive capacity into three dimensions: adoption capacity, implementation capacity and infusion capacity. It made a deep analysis on the essence of each dimension and suggested that the three dimensions are mutually independent as well as interactional with each other. Focusing on the multi-dimensional feature of IT absorptive capacity, this dissertation suggested a measurement index system and measured each dimension pertinently. This method effectively overcomes the shortcomings which lack understanding of the rich meanings of absorptive capacity and its multi-dimension. This dissertation used survey data to test the relationships among three dimensions of IT absorptive capacity. The results show that IT adoption capacity is positively and significantly related to implementation capacity and infusion capacity; IT implementation capacity is positively and significantly related to infusion capacity.Thirdly, considering the different characteristics of different dimensions of IT absorptive capacity, this dissertation revealed which kind of factors would influence each dimension of IT absorptive capacity, and explained the reasons why IT absorptive capacity of firms would differ to some extent. On the basis of summarization of these factors, this dissertation analyzed the component factors of IT absorptive capacity.This dissertation suggested that, due to the difference of the participants each dimension of IT absorptive capacity refers to, different factors would make effect. On the basis of reviewing the influential factors of absorptive capacity, combined with the relevant researches of IT absorption, starting from the personnel who the three dimensions of IT absorptive capacity refer to, it suggested the influential factors of each dimension and analyzed the mechanism of each factor, and the survey data was used to test their effects. The results showed that business knowledge, IT knowledge, innovative consciousness of the firm are positively and significantly related to adoption capacity; senior management support, the capability of IT team, internal cooperation are positively and significantly related to implementation capacity; the staff quality, IT learning and training, organizational communication, IT culture are positively and significantly related to infusion capacity; IT infrastructure is positively and significantly related to the three dimensions. The study on the influential factors of each dimension of IT absorptive capacity can help the firm find out the weakness of its capabilities and factors, and thus adopt measures to make improvement aiming to these shortcomings. On the basis of summarization and discussion on these factors, this dissertation analyzed the component factors of IT absorptive capacity and suggested four aspects of IT absorptive capacity: knowledge stock, IT management, IT culture and IT infrastructure.Fouthly, this dissertation revealed the mechanism of IT absorptive capacity on IS success, and investigated the effects of the three dimensions of IT absorptive capacity on different constructs of IS success, it overcome the weakness that the current researches have not study directly the effects of the different dimensions of absorptive capacity on organizational outcome from a process perspective.This dissertation suggested that the absorptive capacity of IT is a key factor to foster IT absorption. It deeply analyzed the mechanism of each dimension of IT absorptive capacity on IS success. On this basis, using the survey data, it adopted correlate analysis combing structure equation model to test the relationships between three dimensions of IT absorptive capacity and IS success. The results show that all of the three dimensions of IT absorptive capacity have positive effects on IS success, but the action mechanisms of them are different. IT adoption capacity makes positive effect on strategy benefit, but makes no direct effect on operational benefit and management benefit, but by virtue of the mediation effect of implementation capacity and infusion capacity, it can make indirect effect on operational benefit and management benefit. IT implementation capacity makes positively effect on operational benefit and management benefit but makes no direct impact on strategic benefit. The mediation effect of infusion capacity can help it make indirect impact on strategic benefit. IT infusion capacity makes positively effect on operational benefit, management benefit and strategic benefit directly. Furthermore, the results show that IT infusion capacity has greater effect on IS success than adoption and implementation capacity.This conclusion show that if there is just IT adoption without implementation and integration, IT could not make effects on operational benefit and management benefit; If the technology which has been carried out is not fully utilized, IT can not influence the firm's strategic benefit; IT can only enhance firm performance when it is accepted and fully utilized and integrated with organization. Therefore, infusion capacity is the key for the circles of IT absorptive capacity. Firms should pay enough attention to the problem that how IT could infuse into organization after it is adopted and implemented.Fifthly, this dissertation explored deeply the formation and evolution mechanism of IT absorptive capacity from the perspective of organizational learning. It illustrated the dynamic mechanism of IT absorptive capacity evolution, the evolution process, and its evolution mechanism model. They systematically explain how to promote IT absorptive capacity continuously. Furthermore, it found out the disabilities of each dimension of IT absorptive capacity and proposes detail countermeasure for promoting IT absorptive capacity.This dissertation discussed the dynamic mechanism of IT absorptive capacity evolution and suggested that it is a result of both internal and external impetuses. The external impetuses include competitive forces from the same industry, the forces from trade partners, government and IT suppliers; the imternal impetuses mainly come from top management, IT department and business department. Then it developed an evolution process model of IT absorptive capacity, which suggests that the IT absorptive capacity evolution surrounds with the circle of variation, internal selection, and sustain, and the three stages are guided by IT culture. It is essentially an organizational learning process. This dissertation proposed an evolutionary mechanism model of IT absorptive capacity and suggested that the evolution of IT absorptive capacity directly generated from a learning circle based on IT absorption practice; however, without the organizational routine formation and capability development, IT absorptive capacity can not be strong. It paid special attention to the disabilities of each dimension of IT absorptive capacity. On the basis of the above analysis, this dissertation suggested a framework of IT absorptive capacity promotion approach and offered relevant measures respectively starting from senior management, IT department and business department within the organization.