Firms invest in a variety of information technologies and seek to align their IT asset portfolios with two key performance outcomes: efficiency and innovation. Existing research makes the universalistic assumption that both outcomes will always be realized through firms’ IT asset portfolios....

This research draws on transaction-cost and resource-based theory to examine how information technology (IT) capital moderates the relationship between different types of assets and firm scope — both vertical integration and diversification. The analysis suggests that IT capital enables firms...