Performance Effects of IT Capability and Customer Service: The Moderating Role of Service Process Innovation

The effect of information technology (IT) for firm performance is lasting paid much attention. The relationship between IT and firm performance requests intermedium through which IT may influence firm performance. However, there is limited academic investigation on how IT can create performance gains for firms through customer service. This study proposes that customer service in service delivery and service customization are significant mediators through which IT influences firm performance. We also argue that service process innovation is a critical organizational factor that moderates the relationship among IT, customer service (service delivery and service customization), and firm performance. The study examines how the IT capability of a firm should be managed and organized to enhance service delivery and service customization, in turn, whether and how service delivery and service customization influence firm performance. Furthermore, through our theorizing, we draw attention to a significant role of service process innovation as a critical moderator in contemporary firms.