The strategic importance of IT adoption for equipment rental

According to several strategic scientists such as Dewett and Jones (2001), Aized (2012), and Laudon and Laudon (2012), information technologies are vital in order to gain competitive advantages. Information technology allows organizations to, for example, deliver products and services in time and understand customer needs. To make optimal use of the strategic advantages of IT innovation, the adoption of these technologies becomes highly important. But why should organizations increase their IT adoption, and how does IT adoption relate to a strategic business impact?

Enhanced Capabilities for Learning and Dealing With Change

According to Zahra and George (2002), to strengthen their competitive advantage, organizations have to overcome one main problem: managers are increasingly confronted with an excessive amount of information. This makes it impossible to make optimal use of the organization’s core competencies. The vulnerable characteristics of core competencies can be avoided when organizations share explicit and conscious knowledge to create new understanding. Implementing information systems is increasingly important to select/absorb relevant information to reconfigure the organization’s value chain when it is necessary to deal with change. Therefore, a better understanding of information technologies can be helpful to facilitate this absorption process in which organizations develop routines in order to combine and utilize old and new knowledge tailored to company-specific situations.

Image: IT adoption is growing in importance for (equipment) rental companies

Collaboration in a Virtual Space

Secondly, IT adoption is also relevant for the creation of new knowledge. Information technologies allow organizations to work together with partners on a completely different cognitive level or geographic place. Enhanced adoption of information technologies is relevant because knowledge concentrates in a certain time and place. Information technologies allow organizations to work and learn together in a virtual space to collect applied knowledge of an area and integrate that knowledge in one’s own company-specific situations.

Learning through collaboration allows organizations to develop new ideas and strengthens their coordination capacity. In fact, the adoption of new information technologies strengthens the value of companies. IT adoption creates a synergy between the absorption of market-specific knowledge, knowledge creation, and collaboration.

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