International Journal of Information Science and Technology

Vol 6, No 1, ISSN 1726-8125, 2008

THE ROLE AND EFFECT OF INFORMATION TECHNOLOGY IN THE CREATION AND MAINTENANCE OF SUSTAINABLE COMPETITIVE ADVANTAGE

A. Talebnejad , Faculty of Management and Accounting Shahid Beheshti University

Abstract

By the appropriate use of information technology, organizations can achieve sustainable competitive advantages. This technology because of including some characteristics such as being up-to-date, fast and precise and having different geographic localities all the time, has improved organizational efficiency, effectiveness and performance. In this article, we intend to investigate the role and effect of information technology in the creation and maintenance of sustainable competitive advantages from two different approaches: market-based approach and the resource-based approach. In the Market-based approach, meeting customer's and creating values for them, using information technology and the issue of achieving the competitive advantage and position in the market by organizations are addressed. In the resource-based approach, compatibility of the organization's resources such as those of information technology and organizational skills, particularly managerial ones are investigated. Amongst different organizational skills and resources, only managerial skills of information technology can create a sustainable competitive advantage.

Keywords - Information Technology, Sustainable Competitive Advantage, Creation of Value for Customers, Resource-Based Approach, Market-Based Approach.

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