ICT-enabled time performance: an investigation of value creation mechanisms

The study presented in this paper aimed at checking whether companies that embed information and communication technologies (ICT)-enabled time performance into their product offering can achieve better economic outcomes from technology adoption. Indeed, it is still questionable whether technology adoption results in a superior profitability, especially if such an improvement is achieved through the use of functional ICT applications. In this study, we assume that a better alignment among ICT investments, improvements of the logistics process and the value proposition of the firm can lead towards a superior economic performance. A survey was conducted and 180 usable questionnaires were collected from companies engaged in the electronics and vehicle manufacturing industries. Data were analysed through the structural equation modeling approach. The results show that improvements in speed and dependability, achieved through technology adoption, can lead to a better economic performance if they are embedded into superior after-sales services and/or into an improved product offering.