A stage-based diffusion of IT innovation and the BSC performance impact: A moderator of technology–organization–environment

• IS innovation diffusion is critical to performance for a resource-based view (RBV).
• Innovation diffusion theory (IDT) indicates a multi-stage analysis for an innovation.
• Balanced scorecard (BSC) concerns both financial and non-financial aspects.
• Technology–organization–environment (TOE) plays a mediating role for IS diffusion.
• Drawing IDT, BSC, and TOE, we propose a research model for exploring IS diffusion.

Information system (IS) innovation is an important resource to link to firm performance according to the resource-based view. However, the diffusion of IS innovation is often the crux of the final successful use and thus, critical to realizing firm performance. The diffusion process is dynamic and complex in nature. The innovation diffusion theory (IDT), which is inherent with a multi-stage analysis, can provide insight to its implementation. Little research has examined IT-enabled firm performance for a multi-stage analysis. Moreover, empirical studies have shown inconclusive results in assessing IT value. The balanced scorecard (BSC) is a hybrid performance measure system with four indicators. Grounding on the IDT and BSC, this study proposed a novel research model to examine the relationships between a stage-based diffusion structure and the four BSC indicators. Further, the technology–organization–environment (TOE) was defined as a moderator between them as it is critical in determining the adoption of technology innovation. The results indicated that IT value is realized differentially in different forms of performance indicators across different diffusion stages. Time-lag effect is also important for a well-realized financial performance.