• Posted Sept. 3, 2018

Balancing the exploration for and exploitation of IT resources

Study: Balancing exploration and exploitation of IT resources: the influence of Digital Business Intensity on perceived organizational performance


Facing novel information technology (IT), organizations must invest in exploiting existing resources and assets to impact organizational performance. However, organizations must also invest in innovative, emerging technologies to strengthen their IT portfolios. Given the importance of both investments in IT capabilities and investments in digital-business intensity, the question concerning how the two types of investments interrelate arises.

How it was studied:

The authors surveyed 315 chief information officers (CIOs) regarding IT capability, digital-business intensity, organizational performance, number of employees, and firm size. They used partial least squares (PLS) to analyse the data.

Take away:

The study makes recommendations regarding investing in IT capabilities and digital-business intensity to improve organizational performance:

  • Findings highlight the relationship between digital-business intensity (exploration) and IT capabilities (exploitation).
  • Results suggest that companies that leverage their existing IT capabilities to drive digital-business intensity are more adept than other companies at securing performance returns.
  • Under conditions of high digital-business intensity, the effect of IT capability on organizational performance is weakened.
  • Firms should not embark on digital-business intensity in isolation but should consider existing IT capabilities first.

Joseph K. Nwankpa

Joseph K. Nwankpa is an Assistant Professor in the Department of Information Systems & Analytics at Miami University Farmer School of Business, Oxford, Ohio. His primary research focuses on Enterprise Systems, Software Security and Vulnerabilities, Digital Business Strategy, Technology Adoption, Predictive Models and Accounting Information Systems. In recent years, Dr. Nwankpa has focused on using digital technologies such as analytics, cloud, social media, and mobile platform to drive organizational strategies. He has over 30 publications in leading journals and international conferences.

Pratim Datta

Pratim Datta is the PhD Director and Associate Professor of Information Systems at Kent State University Graduate School of Management. Pratim has more than 38 journal articles and is the winner of the Kent State University President's Faculty Excellence award. Prior to joining academia, he worked for global consulting firms. He continues to research and consult on cybersecurity, process reengineering and digital strategies.

Publication Details

  • Authors:Joseph K. Nwankpa
  •  Pratim Datta
  • Categories: Information Systems
  • Link: https://www.tandf...

European Journal of Information Systems
  • Year: 2018
  • Volume: 26
  • Issue: 5
  • Pages: 469-488

  • 3385