Speculating on the Relationship between IT Investment and the Organisational Capabilities

Abstract

In the time when we must “compete with the machine", it is essential to investigate the relationship between IT investment and organisational capabilities. Although there are views such as that the organisational capabilities are mediating variable for IT investment to make a positive return, that IT investment directly augments the organisational capabilities, and others, with partial evidences, the whole picture remains not convincing enough and speculative. The article reviews available literature on the relationship, tries to structure various models, and explores on the possible direction of research efforts.