Core versus peripheral information technology employees and their impact on firm performance

Scholars have widely argued, but not previously examined, that core employees with firm specific skills are critical to the firm's strategic success. This argument has led to the belief that employees whose skills are not firm specific can be readily replaced in the external market and are peripheral to the firm's strategic goals. Employing a resource based view of the firm, we find that the core information technology (IT) employees with firm specific skills are value-adding resources that aid the firm's performance whereas peripheral employees with less firm specific skills provide no value to the firm's performance. Examining the issue deeper, we find that the economic impact of the presence of core IT employees is moderated by the organization's non-IT investment intensity. The findings of the research provide insights that help to expand the understanding of resource complements and the role of strategic human resources in a firm.

► We study the impact of core and peripheral IT employees on firm performance. ► We use data from Information Week to ascertain impact using multiple regression. ► Core IT employees positively impact firm performance. ► The impact of core IT employees is moderated by the firms' investment intensity.