How information system capability affects e‐business information technology strategy implementation : An empirical study in Taiwan

Purpose – The primary purpose of this study is to examine the effect that information system capability had on e‐business information technology (IT) implementation strategy; and to understand how the quality of the implementation process for IT strategy could affect e‐business performance. Design/methodology/approach – This study performed a survey of chief information officers from 1,000 major firms in Taiwan. Structural equation modelling (SEM) was used to test for the validity of research hypotheses. Findings – Results showed that the capability of information systems could have a direct and significant effect on the quality of IT strategy implementation, and how the quality of this process could affect e‐business performance. Research limitations/implications – Every organization hopes to improve corporate competitiveness and transform its enterprise through the effective implementation of IT strategy. This study examined how information systems capability could affect the implementation of enterprise IT strategy. However, since large firms in Taiwan are the primary research subjects of this study, the conclusions may not be applicable to enterprises in different countries or cultures. Future studies could examine the subject from the three aspects of technology, organization, and environment to understand the effect that each of these aspects has on e‐business information systems capability. Practical implications – With the rapid development of information technology, the introduction of innovative strategy dealing with IT has become an important topic of research, and has become a focus in the era of e‐business. As a result, organizations feel it is important to discover the shortcomings in information system capability factors that must be improved from the individual, group, or organization levels, and develop appropriate implementation frameworks for IT strategy based on this foundation. Originality/value – This study uses empirical analysis to examine the effect that the capability of information systems has on the quality of implementation of IT strategy. A compilation of relevant literature showed that most studies have focused on conceptual frameworks or have examined the question of IT strategy from the level of technology. Few studies have examined the effect that information system capability has on IT implementation strategy. Therefore, the results and findings of this study could provide an important reference for IT strategy implementation, in the era of e‐business.