The role of IT in creating customer value. The reinforcing effect of IT orientation and market orientation on customer value

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This research aims to assess the reinforcing effect of market orientation and IT orientation on customer value. The results indicate that firms that match their products or services with market needs create higher customer value. Furthermore, firms that tailor the IT resources to needs of different departments and manage the required IT capacity are able to achieve objectives in an efficient and effective way. In this way, IT management assures that firms offer products and services effectively and in timely manner, which leads to higher customer value. Reinforcing effects between the two orientations are also found. IT management reinforces the effect of market orientation on customer value. Firms with better IT management experience a stronger positive effect of matching products and services with market needs on customer value. Also, firms with high levels of IT system configuration experience a positive effect of counter reacting to competitor moves on customer value. The findings provide support for the reinforcing proposition and demonstrate that the effect of both orientations on customer value is strongest when they are bundled together. This supports previous literature on RBV and dynamic capabilities theory and gives evidence for the role of IT within the market orientation concept.
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