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Competitive advantage and simultaneous mutual influences between information technology adoption and service innovation: Moderating effects of environmental factors

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  • Chiu, Chia-Nan
  • Yang, Cheng-Liang

Abstract

Although the effect of information technology (IT) adoption on competitive advantage is well documented, the mechanism that explains this effect and the magnitude of the effect that is contingent on other variables remain unclear. The objective of this study is to quantify the reciprocal causation between IT adoption and service innovation, determine the respective roles of service innovation and IT adoption in competitive advantage and to estimate the moderating effects of environmental factors. Data analysis reveals a bidirectional relationship between IT adoption and service innovation. In contrast to the findings of most related studies, service innovation has a positive effect on competitive advantage; however, IT adoption has a negative effect on competitive advantage. A high level of environmental factors is more likely to increase the positive effect of service innovation on competitive advantage, but it is also more likely to decrease the negative effect of IT adoption on competitive advantage.

Suggested Citation

  • Chiu, Chia-Nan & Yang, Cheng-Liang, 2019. "Competitive advantage and simultaneous mutual influences between information technology adoption and service innovation: Moderating effects of environmental factors," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 192-205.
    • Handle: RePEc:eee:streco:v:49:y:2019:i:c:p:192-205
    DOI: 10.1016/j.strueco.2018.09.005
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    3. Anne Yenching Liu & Sungmin Lin, 2023. "Service for specialized and digitalized: Consumer switching perceptions of E‐commerce in specialty retail," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1521-1533, April.
    4. Olakunle Jayeola & Shafie Sidek & Azmawani Abd Rahman & Anuar Shar Bali Mahomed & Hu Jimin, 2020. "Contextual Factors and Strategic Consequences of Cloud Enterprise Resource Planning (ERP) Adoption in Malaysian Manufacturing SMEs: A Conceptual Framework," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 176-201.
    5. Józef Ober, 2020. "Innovation Adoption: Empirical Analysis on the Example of Selected Factors of Organizational Culture in the IT Industry in Poland," Sustainability, MDPI, vol. 12(20), pages 1-25, October.
    6. Dolores Gallardo-Vázquez & Luis Enrique Valdez-Juárez & Ángela María Castuera-Díaz, 2019. "Corporate Social Responsibility as an Antecedent of Innovation, Reputation, Performance, and Competitive Success: A Multiple Mediation Analysis," Sustainability, MDPI, vol. 11(20), pages 1-28, October.

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