The Role of IT in Innovation at the Organizational Level – A Literature Review

Abstract

Information technology (IT) is broadly recognized as an important element that supports innovation, however there has been relatively little integration of research in Information Systems on this topic. In this literature review, we examine and synthesize studies on the role of IT in innovation at the organizational level of analysis published in the past ten years in the leading Information Systems journals. We find that while much of the research has generally demonstrated positive effects of IT investments on innovation, IT can also be a cause of hyperturbulence in specific industries, and many factors can moderate the returns realized from IT investments. We also note that extant research is grounded in a relatively narrow theoretical foundation and we discuss the opportunities for developing the theoretical base on the role of IT in innovation.