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Effect of IT capability and intangible IT resources on sustainable competitive advantage: Exploring moderating and mediating effect of IT flexibility and core competency

Author

Listed:
  • Lahcene Makhloufi

    (University Of Muhammadiyah Sumatera Utara)

  • Noorulsadiqin Azbiya Yaacob

    (University Of Muhammadiyah Sumatera Utara)

  • Abderrazak Ahmed Laghouag

    (King Khalid University [Abha])

  • Alhussain Ali Sahli

    (King Khalid University [Abha])

  • Fateh Belaid

    (UCL FGES - Université Catholique de Lille - Faculté de gestion, économie et sciences - ICL - Institut Catholique de Lille - UCL - Université catholique de Lille)

Abstract

The purpose of this research is (1) to examine the integration impact of IT assets (e.g., intangible IT resources, IT capability, and IT flexibility) on core competency, and (2) to explore the mediating effect of core competency on the relationship between IT assets and sustainable competitive advantage (SCA), and (3) to determine whether IT flexibility strengthen the relationship between core competency and SCA. The study applied a quantitative and cross-sectional approach to collect data from 164 Malaysian small and medium-sized enterprises (SMEs) targeting managers from the middle-to-upper level. The findings infer new insights regarding IT integration's critical role within core competency activities to achieve SCA. The results show that IT assets possess a positive and significant impact on core competency (CC), and CC positively impact SCA. Finally, CC partially mediates the relationship between IT resources and IT capability to SCA, and IT flexibility positively moderates the relationship between CC and SCA. This study addressed IT's integration within core competency activities to help SMEs achieve SCA. The study advances dynamic capability theory by providing new insights into the importance of core competency and IT integration to develop and reconfigure existing capabilities to fit business strategy goals.

Suggested Citation

  • Lahcene Makhloufi & Noorulsadiqin Azbiya Yaacob & Abderrazak Ahmed Laghouag & Alhussain Ali Sahli & Fateh Belaid, 2021. "Effect of IT capability and intangible IT resources on sustainable competitive advantage: Exploring moderating and mediating effect of IT flexibility and core competency," Post-Print hal-03678031, HAL.
    • Handle: RePEc:hal:journl:hal-03678031
    DOI: 10.1080/23311975.2021.1935665
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    Cited by:

    1. Shela, V. & Danks, Nicholas P. & Ramayah, T. & Ahmad, Noor Hazlina, 2024. "An application of the COA Framework: Building a sound foundation for organizational resilience," Journal of Business Research, Elsevier, vol. 179(C).

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