Information Technology Capability and Firm Performance Flashcards
1
Q
What is included in the IT capabilities of a firm?
A
the IT infrastructure, the human IT resources (which are the technical and managerial IT skills), and the IT enabled intangibles
2
Q
What can IT capabilities do for product differentiation and marketing costs?
A
Increase differentiation and reduce marketing costs
3
Q
How do IT capabilities reduce marketing costs?
A
by increasing the switching costs and customer loyalty
4
Q
Why are IT based competitive advantages short lived?
A
since everything is highly standardized and homogeneous
5
Q
What is a financial halo effect?
A
the impact of past financial performance on a reputation survey
