Information technology and perceived competitive advantage: An empirical study of engineering consulting firms in Taiwan

Tan, R R (1996) Information technology and perceived competitive advantage: An empirical study of engineering consulting firms in Taiwan. Construction Management and Economics, 14(3), pp. 227-240. ISSN 01446193

Abstract

Using the 13 leading engineering consulting firms in Taiwan as samples, this empirical research adapts Bakos and Treacy's (1986) model to study the impact and linkage of information technology (IT) and competitive advantage. The five sources of competitive advantage are; competence in design and trade-off analysis, unique capability and services, switching costs, internal efficiency and interorganizational efficiency. Twenty-five ITs are identified and classified into five categories; administration and decision support, engineering analysis, organizational communication, design and project management, and advanced computer technology. For the firms surveyed, the design and project management system and the administration and decision support system have offered very good implementation results. Different ITs are shown to impact on the sources of competitive advantage differently. The diverse relative weights attached to the different sources of competitive advantage from the individual firm match the general theory that the characteristics of the firm influences competitive strategy. The relationship between the perceived IT impact and the assessed realized competitive advantage is demonstrated. The linkage between business performance and the assessed competitive advantage is inconclusive. This research is an empirical study of IT from the perspective of competitive advantage rather than from the more usual operational perspective. The validity of some of the initial findings could be verified by further study using multiple year performance data with larger sample size or through extensive case analysis.

Item Type: Article
Uncontrolled Keywords: competitive advantage; engineering consulting industry; information technology; multivariate analysis
Index terms: empirical study, consulting industry, implementation, project management, efficiency, competitive advantage, interorganizational, linkage, sample size, validity, competence, business performance, competitive strategy, information technology, Taiwan, multivariate analysis, decision support
Subjects: decision analysis, market analysis, statistical analysis, industry analysis, performance management, research methods, performance measurement, personnel development, project management theory and practice, Geography, economic analysis, contractual arrangements, research design and methodology, business, evaluation and assessment methods, computing systems
Topics: Human Resources, Quality Management, Digital Applications, Procurement, Risk Management, Project Management, Geographical Context, Research Practice, Business Strategy
Descriptive scope: 3 PCA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here