Research Article
Building Sustainable Competitive Advantage: Matching IT Capabilities by Network Externalities
@INPROCEEDINGS{10.4108/eai.12-1-2024.2347231, author={Li Cheng and Libo Yang}, title={Building Sustainable Competitive Advantage: Matching IT Capabilities by Network Externalities}, proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Digital Management, BDEDM 2024, January 12--14, 2024, Ningbo, China}, publisher={EAI}, proceedings_a={BDEDM}, year={2024}, month={6}, keywords={standardized it capabilities; non-standardized it capabilities; network externalities; competitive advantage}, doi={10.4108/eai.12-1-2024.2347231} }- Li Cheng
Libo Yang
Year: 2024
Building Sustainable Competitive Advantage: Matching IT Capabilities by Network Externalities
BDEDM
EAI
DOI: 10.4108/eai.12-1-2024.2347231
Abstract
IT capability based on RBV cannot provide firms with sustainable competitive advantage. IT capability consists of standardized IT capability and non-standardized IT capability. This paper applied Stackelberg model to research match of IT capabilities factors based on network externalities. Network externalities from IT technology standards can bring about sustainable competitive advantage for the incumbent firms. When difference of non-standardized IT capability between two types of firms is significant, the incumbent firms should control compatibility of standardized IT capability, which enable him to achieve differentiation competitive advantage; when difference of non-standardized IT capability between firms is insignificant, incumbent firm should release IT standards absolutely, which can increase consumers’ anticipation to achieve installed-base for technological innovation.
