IT Capabilities and Firm Performance: The Moderating Role of Institutional Pressures and the Mediating Role of IT Innovation Success

A review of the literature shows that the underlying mechanisms through which IT capabilities lead to improved firm performance are by no means clear, and IS researchers call for future research which develops better metrics for evaluating IT resources and examines the intermediate variables and context-related variables between IT capabilities and firm performance. This study integrates the moderating role of institutional context and the mediating role of IT innovation success into one structural model. The survey method has been conducted to test the proposed model and the results have been discussed in detail. This research helps identify the full chain of variables connecting IT capabilities to firm performance by adding an intermediate variable and a moderating variable. As a result, we suggest that firms should adapt to the different contexts with the distinct levels of institutional pressures in order to facilitate its IT capabilities to outperform than its competitors