Resource Orchestration in IT-Enabled Innovation: An Important Missing Link

This conceptual paper addresses the question: how do firms convert IT resources into IT capabilities and IT dynamic capabilities for innovation? The extant literature on IT capabilities has few studies that attempt to explain "how" IT resources are acquired, exploited, or manipulated in order to support IT capabilities and IT dynamic capabilities. Using a comprehensive literature review, and the theoretical lens of Resource Orchestration Theory, this paper addresses this gap. We demonstrate that firms use the processes of bundling, structuring, and leveraging to convert IT resources into IT capabilities, and IT capabilities into IT dynamic capabilities. We show how firms are able to "orchestrate" IT resources and IT capabilities to innovate and create competitive advantages, even in the face of environmental turbulence which introduces uncertainties that affect the orchestration process. The paper has value for academics and practitioners. For academics, it opens up the black box of the relationships among IT resources, IT capabilities, and IT-enabled dynamic capabilities using Resource Orchestration Theory. It identifies new opportunities to apply this theory and to conduct further research. For practitioners, the paper provides insights regarding the use of IT resources and the development of IT capabilities to enhance innovation and firm performance.