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International Journal of Internet and Enterprise Management

 

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International Journal of Internet and Enterprise Management (1 paper in press)

 

Regular Issues

 

  • Heteromorphism: Beaconing IT Innovations under Institutional Pressure towards Unique Capabilities   Order a copy of this article
    by Jerrel Leung, Waiman Cheung, Sung-Chi Chu 
    Abstract: RFID is a promising technology that holds the potential to significantly improve supply chain performance. However, the expected large scale diffusion did not ensue. Major retailers indeed reported great benefits with RFID in 2004, but the diffusion stagnated afterwards. Various studies argue that RFID has brought many organizations disappointing results. Furthermore, RFID innovations showed that there were exceptions, where organizations were able to make use of the technology and gained competitive advantages over time. We use two rather competing theories, namely Institutional Theory and Resource Based View, to explain the exceptional cases. Institutional Theory can explain that organizations often imitate RFID pioneers due to an institutional pressure, which leads to organizations turning homogeneous and causes disappointing results. Whereas, Resource Based View can explain that organizations gain significant benefits by developing unique capabilities and become heterogeneous instead. We posit that organizations do not necessarily need to strike a balance between the institutional and resource based determinants, as suggested in the literature. The IT innovation process can be rather sequential, as can be observed with RFID innovations. An in-depth case study is leveraged to describe the process of turning an IT innovation under institutional pressure into unique capabilities.
    Keywords: IT innovation; institutional theory; resource based view; mindfulness; RFID.