How IT Complements Positioning In Competition Networks to Enhance Innovation and Firm Performance

Antecedents to operating performance are found not only at the organizational or supply chain level of analysis, but also the network level of analysis. Further, prior research has largely neglected the role of information technology in facilitating operating performance while applying the theoretical lens of multi-firm networks. Building upon these theoretically underdeveloped themes, this interdisciplinary research proposes two key ideas that extend the information systems and strategic management literatures. First, a brokerage position within a competition network (competitive brokerage) enhances operating performance by increasing innovation efficiency - a mediation relationship. Second, IT for operational integration, which refers to the use of IT for the intra- and inter- organizational integration of the firm’s operations, strengthens the benefits realized from competitive brokerage on innovation efficiency - a mediated-moderation relationship. Panel regression analysis on a 7 year unbalanced longitudinal dataset consisting of a multi-firm competition network spread across 11 industries, matched with IT, innovation, and operational performance data, supports our theory.