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Theoretical Justification for IT Infrastructure Investments

Author

Listed:
  • Timothy R. Kayworth

    (Baylor University, USA)

  • Debabroto Chatterjee

    (Washington State University, USA)

  • V. Sambamurthy

    (University of Maryland, USA)

Abstract

The strategic importance of building highly capable information technology (IT) infrastructure has become a crucial management issue of the 1990s and beyond. However, in spite of the numerous benefits attributed to IT infrastructure, these claims remain unsubstantiated. This problem is due, in part, to inadequate conceptualizations of IT infrastructure and its measurement as well as a lack of theoretical frameworks for explaining its impacts. To address these problems, this paper proposes a theoretical framework to justify the value creating potential of IT infrastructure investments. First, we provide a conceptual framework that describes the nature of IT infrastructure and its related components. Next, we discuss the role of IT infrastructure as a competitive weapon and identify three areas where it may create strategic value for the firm: responsiveness, innovativeness, and economies of scope. For each area, specific theories are used and research propositions are developed to guide future infrastructure research.

Suggested Citation

  • Timothy R. Kayworth & Debabroto Chatterjee & V. Sambamurthy, 2001. "Theoretical Justification for IT Infrastructure Investments," Information Resources Management Journal (IRMJ), IGI Global, vol. 14(3), pages 5-14, July.
    • Handle: RePEc:igg:rmj000:v:14:y:2001:i:3:p:5-14
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    Cited by:

    1. Hamed Fallah Tafti & Seyyed Habibollah Mirghafoori & Farzaneh Eslami Farimani, 2020. "Analyzing the Mediating Role of IT on Relationship Between Social Capital and Individual Performance in Organization," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(1), pages 305-320, March.
    2. Shiau, Wen-Lung & Dwivedi, Yogesh K. & Lai, He-Hong, 2018. "Examining the core knowledge on facebook," International Journal of Information Management, Elsevier, vol. 43(C), pages 52-63.
    3. Davis, Donna F. & Mentzer, John T., 2007. "Organizational factors in sales forecasting management," International Journal of Forecasting, Elsevier, vol. 23(3), pages 475-495.
    4. Teubner, Rolf Alexander & Pellengahr, Alexander & Mocker, Martin, 2012. "The IT strategy divide: Professional practice and academic debate," ERCIS Working Papers 12, University of Münster, European Research Center for Information Systems (ERCIS).
    5. Jin, Yan & Vonderembse, Mark & Ragu-Nathan, T.S. & Smith, Joy Turnheim, 2014. "Exploring relationships among IT-enabled sharing capability, supply chain flexibility, and competitive performance," International Journal of Production Economics, Elsevier, vol. 153(C), pages 24-34.
    6. Robert G. Fichman, 2004. "Real Options and IT Platform Adoption: Implications for Theory and Practice," Information Systems Research, INFORMS, vol. 15(2), pages 132-154, June.

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