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Is your IT eco-system ready to facilitate organizational innovation? Deriving an IT eco-system readiness measurement model

Anecdotal commentary suggests that nearly 90% of ideas never convert to innovations due to the lack of organizational readiness. Despite a wealth of studies contributing to a better understanding of innovation, much less attention has been devoted to our understanding of how to better equip the IT eco-system to facilitate innovation. This paper conceptualizes "IT ecosystem readiness" as a formative, multidimensional index. Such a validated and widely accepted index would facilitate cumulative research on the role of IT for innovation, while at the same time provide a benchmark to track their readiness of the IT eco-system. The validated model includes seven dimensions. Study findings evidence the necessity, additivity, and completeness of these seven dimensions. The validation involved two studies. Study-1 included an inductive analysis of 774 qualitative impacts resulted in an a-priori model of 21 measures, which was then operationalized in the subsequent quantitative survey, using 378 representing 189 organizations.