How Information Management Capability Affects Innovation Capability and Firm Performance under Turbulence: Evidence from India

An ongoing debate in the Information Systems literature concerns the role of IT facilitating innovation under distinct environmental contingencies. We advance a more nuanced approach to examine how innovation capability is influenced by information management capability (IMC) and the impact of environmental turbulence on this relationship. We propose a conceptual model wherein innovation capability partially mediates the relationship between IMC and firm performance. Further, we posit that in conditions of greater turbulence, the relationship between IMC and innovation capability is stronger. We suggest that IMC is a higher-order capability comprising three underlying dimensions: information acquisition, information integration and infrastructure flexibility. Then, we posit innovation capability as a multidimensional construct that incorporates innovation in the outputs of a firm and the means by which the outputs are produced. Based on a unique dataset collected through survey of 147 firms in India, we find broad support for our theoretical model.