Cowoo

While conducting research in information systems, I frequently feel that I lack the knowledge of theories in this discipline. But there seems to be no chance for me to learn these theories in a formal course. I decide to teach myself of these theories in the next few months.

There is a link on the research menu of AIS to “theories used in IS research wiki“. I’ll take this as my main clue of learning. OK, let start with two perspectives of firms.

Resource-based theory of the firm

from http://www.fsc.yorku.ca/york/istheory/wiki/index.php/Resource-based_view_of_the_firm

The resource-based view (RBV) argues that firms possess resources, a subset of which enable them to achieve competitive advantage, and a subset of those that lead to superior long-term performance. Resources that are valuable and rare can lead to the creation of competitive advantage. That advantage can be sustained over longer time periods to the extent that the firm is able to protect against resource imitation, transfer, or substitution. In general, empirical studies using the theory have strongly supported the resource-based view.

Diagram/schematic of RBV theory

Knowledge-based theory of the firm

from http://www.fsc.yorku.ca/york/istheory/wiki/index.php/Knowledge-based_theory_of_the_firm

The knowledge-based theory of the firm considers knowledge as the most strategically significant resource of the firm. Its proponents argue that because knowledge-based resources are usually difficult to imitate and socially complex, heterogeneous knowledge bases and capabilities among firms are the major determinants of sustained competitive advantage and superior corporate performance.

This knowledge is embedded and carried through multiple entities including organizational culture and identity, policies, routines, documents, systems, and employees. Originating from the strategic management literature, this perspective builds upon and extends the resource-based view of the firm (RBV) initially promoted by Penrose (1959) and later expanded by others (Wernerfelt 1984, Barney 1991, Conner 1991).

Although the resource-based view of the firm recognizes the important role of knowledge in firms that achieve a competitive advantage, proponents of the knowledge-based view argue that the resource-based perspective does not go far enough. Specifically, the RBV treats knowledge as a generic resource, rather than having special characteristics. It therefore does not distinguish between different types of knowledge-based capabilities. Information technologies can play an important role in the knowledge-based view of the firm in that information systems can be used to synthesize, enhance, and expedite large-scale intra- and inter-firm knowledge management (Alavi and Leidner 2001).