CIS Working Paper Series

INFORMATION TECHNOLOGY AND THE NEW YORK STOCK EXCHANGE'S STRATEGIC RESOURCES FROM 1982-1999

This paper applies an extended version of the resource-based view of strategy to an 18-year history of investments in information technology by the New York Stock Exchange. The extended RBV predicts that firms will use information technology to enhance their existing resources and to create a system of resources for competitive advantage. It also suggests that once a firm has chosen to compete with technology, it will face a continuing cycle of technology investment to remain competitive. The paper presents two propositions about IT investments at the Exchange and tests them with qualitative and quantitative data from several different sources. The extended model helps to explain the strategy and IT investment pattern at the Exchange. The results provide insights for firms that invest in information technology to create a system of traditional and IT resources to obtain a sustainable competitive advantage.

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