| The use of information technology (IT) is becoming an essential component within the commercial sector. While large number of companies have adopted IT applications to achieve competitive advantage, and number of studies have been done on competitive advantage through an IT application, it is not clear what the impact of an IT application on competitive advantage is. The purpose of this study was to examine the impact of an IT application on competitive advantage and how to create and sustain competitive advantage through an IT application.; For that purpose, this study adopted Sethi and King's (1994) instrumental tool, while the theory of resource based view of the firm (RBV) was the theoretical underpinning for the investigation of how to create and sustain competitive advantage through an IT application. In other words, this study examined how an application impacts the seven dimensions which are attributes of competitive advantage through an IT application, and how a firm's resources and capabilities, which are measured in three dimensions, moderate the impact of an IT application on competitive advantage. The three dimensions were identified from the review of literature concerning on the theory of RBV.; The results of the study indicated that the lodging companies gain competitive advantage mostly by improving efficiencies and eventually reducing the costs. Also, the lodging companies ensure that their IT applications reflect their businesses and are aligned with their strategies and marketing policies. This effort allows the lodging firms to gain synergy through an IT application. Reviewing the results of the study reveals that the overall strategy of the firms affect the relationships between competitive advantage through an IT application and a firm's resources and capabilities. The asset holding and managing companies indicated a higher degree of primary and support activity efficiencies, while the franchising lodging firm showed a higher degree of preemptiveness. Furthermore, in the asset holding and managing lodging companies, higher degrees of primary and support activity efficiencies were associated with organizational structure, management competencies, and a degree of centralization of an IT department, while in the franchising lodging firm, a higher degree of preemptiveness is related to organizational structure and management competencies. Based on these findings, seven conclusions and a new framework were developed which will help researchers in the future investigate competitive advantage through an IT application empirically. Also, they will help lodging managers consider resources and capabilities they may need to create and sustain competitive advantage through an IT application. |
