Leveraging IT capabilities for competitive performance in the Chinese context: the mediating roles of internal and external integration and the moderating role of environmental turbulence

Purpose The purpose of this study is to investigate how different integration strategies (i.e. internal and external integration) mediate the impacts of information technology (IT) capabilities (i.e. internally- and externally-focused) on competitive performance as well as how such mediating effects are moderated by environmental turbulence. Design/methodology/approach This study uses data collected from 179 Chinese firms for analyses using hierarchical regression analysis. Findings The results find that internally- and externally-focused IT capabilities affect competitive performance through internal and external integration, respectively. Moderated mediation analyses further reveal that the mediating effect of internal integration on the relationship between internally-focused IT capability and competitive performance is stronger under high level of environmental turbulence, while the mediating effect of external integration on the relationship between externally-focused IT capability and competitive performance is stronger under low level of environmental turbulence. Originality/value This study crystallizes the insights of resource-action-performance model and information processing theory and empirically tests how environmental turbulence moderates the mediating effects of different integration strategies on the relationships between different IT capabilities and competitive performance.