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Information technology, the organizational capability of proactive corporate environmental strategy and firm performance: a resource-based analysis

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  • Jose Benitez-Amado
  • Rita M Walczuch

Abstract

The study of the relationships between information technology (IT), environmental organizational issues and firm performance is a cutting-edge research topic for the information systems (IS) community. However, at present we know very little about these relationships. Drawing on the perspective of IT-enabled organizational capabilities and the literature on organizations and the natural environment, our study introduces conceptually the construct organizational capability of proactive corporate environmental strategy to the IS field. We propose that IT capability may enable the implementation of a proactive environmental strategy and that this strategy could play a significant role in determining the business value of IT. Using structural equations modeling with data collected from 63 firms, we find that IT capability is an enabler of proactive environmental strategy and that this strategy plays a significant role in mediating the effects of IT on firm performance. Our study provides initial evidence on the role of IT in the implementation of proactive environmental practices. Our results suggest to IT executives that their decisions matter in shaping environmental sustainability, which in turn will generate business value from IT.

Suggested Citation

  • Jose Benitez-Amado & Rita M Walczuch, 2012. "Information technology, the organizational capability of proactive corporate environmental strategy and firm performance: a resource-based analysis," European Journal of Information Systems, Taylor & Francis Journals, vol. 21(6), pages 664-679, November.
  • Handle: RePEc:taf:tjisxx:v:21:y:2012:i:6:p:664-679
    DOI: 10.1057/ejis.2012.14
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    Cited by:

    1. Riggs, Randy & Felipe, Carmen M. & Roldán, José L. & Real, Juan C., 2024. "Information systems capabilities value creation through circular economy practices in uncertain environments: A conditional mediation model," Journal of Business Research, Elsevier, vol. 175(C).
    2. Daniel J. Veit & Jason B. Thatcher, 2023. "Digitalization as a problem or solution? Charting the path for research on sustainable information systems," Journal of Business Economics, Springer, vol. 93(6), pages 1231-1253, August.

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