Competitive brokerage, information technology and internal resources

Abstract

To thrive in the current embedded and electronic competitive environment, organizations must achieve advantageous positions within their networks of competition. We strengthen the understanding of the genesis of network structures by examining the IT-enabled capabilities and internal resource endowment that determine an advantageous position in competition networks, which we term as competitive brokerage. We propose that firms should consider their competitive brokerage position to elaborate a successful e-business strategy. We employ a two-stage Tobit regression on a longitudinal competition network that spans 13 industries and demonstrate that commercial, technical and intangible resources influence competitive brokerage. We find that IT-enabled information management capability strengthens the effects of intangible resources to attain a competitive brokerage position. Our study contributes towards the IT business value, resource base view and competitive dynamics literatures. Overall, our results demonstrate that IT plays a critical role in enabling firms to face multi-market competition in the embedded economy.