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Review: the resource-based view and information systems research: review, extension, and suggestions for future research (1).(MISQ Review)

MIS Quarterly

| March 01, 2004 | Wade, Michael; Hulland, John | COPYRIGHT 2004 University of Minnesota, MIS Research Center. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Abstract

Information systems researchers have a long tradition of drawing on theories from disciplines such as economics, computer science, psychology, and general management and using them in their own research. Because of this, the information systems field has become a rich tapestry of theoretical and conceptual foundations. As new theories are brought into the field, particularly theories that have become dominant in other areas, there may be a benefit in pausing to assess their use and contribution in an IS context. The purpose of this paper is to explore and critically evaluate use of the resource-based view of the firm (RBV) by IS researchers.

The paper provides a brief review of resource-based theory and then suggests extensions to make the RBV more useful for empirical IS research. First, a typology of key IS resources is presented, and these are then described using six traditional resource attributes. Second, we emphasize the particular importance of looking at both resource complementarity and moderating factors when studying IS resource effects on firm performance. Finally, we discuss three considerations that IS researchers need to address when using the RBV empirically. Eight sets of propositions are advanced to help guide future research.

Keywords: Resource-based view, organizational impacts of IS, information systems resources, competitive advantage, IS strategic planning, information resource management

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Introduction

In 1992, Mahoney and Pandian outlined how the resource-based view of the firm (RBV) might be useful to the field of strategic management. One benefit of the theory, they noted, was that it encouraged a dialogue between scholars from a variety of perspectives, which they described as "good conversation." Since then, the strengths and weaknesses of the RBV have been vigorously debated in strategic management and other management disciplines (e.g., Barney 2001; Fahy and Smithee 1999; Foss 1998; Priem and Butler 2001a, 2001b).

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