IT-Based Competitive Advantage: A Cross-Case Comparison of Business Software Usage

The value contribution of IT is at the heart of the IS discipline's research. Value generation in itself, however, does not necessarily translate to competitiveness. A key question has been whether organizations can realize temporary or sustainable competitive advantage through the use of business software. Applying theories of strategic positioning and the resource-based view, this paper presents findings from 10 case studies and evaluates to what extent the value contribution from IT investments can lead to (sustainable) competitive advantage. While all of the case studies report value contribution and a state of process excellence, actual competitive advantages are found to be only temporary, with one exception. In conclusion, we review competitive advantage theory and its taxonomy. The results lead us to call for a refinement of taxonomy and a paradigm shift.