Exploring the Renewal of IT-enabled Resources from a Structural Perspective

Abstract

Organizations are exposed to ever-increasing dynamic environments making the need to sustain the derivation of IT benefits critical. However, researchers have observed that IT benefits are short-lived and have called for studies on how organizations can sustain the derivation of IT benefits especially in dynamic environments. Research shows that the integration of IT assets and other organizational resources needed to form IT-enabled resources from which organizations derive IT benefits can also constrain the renewal of IT-enabled resources to sustain the derivation of IT benefits. In this study, we draw on relevant theories, published empirical cases, and a primary case study to explore, from a structural perspective, the renewal of IT-enabled resources to sustain the derivation of IT benefits. We find that certain structural properties (i.e., component flexibility, component centrality, and component coupling) emerge during the formation and modification of IT-enabled resources and influence the renewal of IT-enabled resources. We extend Nevo and Wade’s model on the formation of IT-enabled resources with the structural properties and offer eight propositions on how the structural properties and organizational capabilities influence the renewal of IT-enabled resources. We discuss the theoretical and managerial implications and identify areas for future research.