Title:
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PYRAMID MODEL - CONCEPTUALIZING AN
ORGANIZATIONAL CAPABILITY TO DESIGN IT
INVESTMENTS |
Author(s):
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Mikko H. Hirvonen |
ISBN:
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978-989-8704-37-5 |
Editors:
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Miguel Baptista Nunes, Pedro IsaĆas and Philip Powell |
Year:
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2022 |
Edition:
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Single |
Keywords:
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IT Investment, Complementary Investments, Organizational Capability, IT Business Value (ITBV), Configurational Model |
First Page:
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135 |
Last Page:
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142 |
Language:
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English |
Cover:
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Full Contents:
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click to dowload
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Paper Abstract:
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In this paper, a configurational framework to conceptualize an organizational capability, to design IT investments, is
presented. IT is seen as a main driver of productivity and an enabler of digital innovations. At the same time, companies
are struggling how to design IT investments. Based on Resource Based View of the firm and Dynamic Capabilities
Framework, an organizational capability is considered as a basic unit, and a building block, of a competitive advantage. By
building on those theories and systems thinking, Leavitt's 'Diamond model', and Parsons' model of an organization with
'three levels of responsibility', a 'Pyramid model' to conceptualize an organizational capability is developed. Suggested
framework provides a foundation for business need-driven IT investment design at any level of an organization. In the
'Pyramid model' the recent understanding how IT can generate business value, is brought together and further developed.
The model is expected to be highly valuable in practice helping to design and justify investments to drive productivity and
e.g., to scale digital innovations. |
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