Linking routines to the evolution of IT capability on agent-based modeling and simulation: a dynamic perspective |
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| Authors: | Bing Bai Byungjoon Yoo Xiuquan Deng Iljoo Kim Dehua Gao |
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| Institution: | 1.Business School,Jiangsu Normal University,Xuzhou,China;2.Graduate School of Business,Seoul National University,Seoul,Korea;3.The School of Economics and Management,Beihang University,Beijing,China;4.Haub School of Business,Saint Joseph’s University,Philadelphia,USA;5.Beihang University,Beijing,China |
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| Abstract: | IT capability as an important source of competitive advantage has been strongly emphasized in the strategic management literature, yet the formation and evolution of IT capability in the ever-changing business environment are not well explained. To fill this gap, this paper takes routine as the unit of analysis, depicts a micro-interpretation of the formation and evolution of IT capabilities from the routine-based and dynamic perspective, and uses the agent-based simulation methodology to simulate the evolutionary process of IT capability as well as to identify the underlying principles. In order to provide a better presentation of the evolutionary process, a routine-based view of the enterprise explicitly recognizes relationships of IT resources and capabilities. The simulation results show that the evolution of IT capability is a dynamic adaption and learning process. From the routine-based view, the evolution of IT capability is indeed the process of variation, selection, and retention for IT routines. |
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