Critical factors in information technology capability for enhancing firms environmental performance: Case of Indonesian ICT sector
International Journal of Agile Systems and Management
School of Business and Law / Centre for Innovative Practice
Information technology (IT) capability can be adopted by organisations to improve their environmental performance in order to meet environmental regulations, improve their profitability and enhance their competitive position in the marketplace. The main purpose of this paper is to develop a research framework which can serve as a basis to understand how IT capability leads to improvement of environmental performance and what critical IT capabilities would improve environmental performance in an organisation. The hypothesised framework is developed based on a review of the literature on Resource Based View theory and green IT. The sampling unit of this study is from managerial levels in selected 1265 Indonesian ICT organisations based on the list provided by the Ministry of Trade, Republic of Indonesia. The findings show that environmental performance is influenced by IT infrastructure quality, IT human resources competence, and environmental IT competence.