The effects of absorptive and transformative capabilities on information capabilities and competitive performance of Malaysia universities

Abstract

The purpose of this research is to develop a conceptual framework that examines the effects of the mediating variable of absorptive and transformative capabilities on a different dimension of information capabilities and the competitive performance of universities. The research draws on extant literature of information technology business value, aspect of information technology capability and institutional capabilities to identify the determining effects of absorptive, transformative capabilities on information capabilities and competitive performance. The result of the review suggests the higher order capability of absorptive and transformative capabilities have a proposition to mediate the relationship between information capabilities as lower order capability and competitive performance of universities. The proposed framework adopts the resource-based view, complementary resources and dynamic capability theoretical perspectives to determine the competitive performance as the impacts of absorptive, transformative and information capabilities. Information capabilities dimensions in the research comprise of information technology competence, information management competence and information behaviour and value competence. Information capabilities are part of institution capability to synergies the development of higher order capability to influence the competitive performance of the institution. The framework provides a starting point for the researcher to understand how the effective use and manage information enable the institution to adapt and reconfigure the dynamic environmental changes and in turn influence the competitive performance of the institution. While for the practitioner, the framework could be used to achieve a clear understanding of how the relationship between information capabilities and competitive performance exists.