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Essays on the Management of Innovation via IT-related Resources

This thesis comprises of three studies which attempt to address unanswered questions in the prior 
research on the role of IT in firm innovation specifically: How do firms manage their capabilities 
and activities with respect to innovation via various types of IT-related resources? The first study of 
this thesis attempts to address one such gap by theorizing and testing how firms manage their 
capability for creating innovation (i.e., absorptive capacity) via an IT-related human resource (i.e., 
high-skilled foreign tech professionals). Regression analyses on 80 semiconductor and 77 software 
firms suggest that U.S. high-tech firms seek to manage their innovation-related capability by 
recruiting foreign talents due to their low inter-firm labor mobility as a result of visa regulations. 
This can counter the high-levels of inter-firm labor mobility in high-tech industries which hampers 
firms’ innovation capability. The second study of this thesis attempts to address another such gap by 
investigating whether major IT systems implemented in firms (e.g., ERP, KMS, HRMS, CRM, and 
SCM) can help them to conduct their entrepreneurial actions of creating new businesses, a key form 
of innovation activity. This study exploits a unique population-level panel survey data on South 
Korean firms during the 2007-2013 period. Initial analyses on 7839 South Korean manufacturing 
firms find that the number of IT systems implemented in the firm increases the probability of 
conducting entrepreneurial actions of creating new businesses (i.e., plan to start a new business). In 
addition, the impact of the number of IT on firms’ plan to start a new business in industries different 
from their current industry is strengthened under turbulent environments i.e., in this case, the 
financial crisis period; 2008-2009. Building on these results, the third study plans to conduct fuzzyset 
Qualitative Comparative Analysis (fs/QCA) to identify portfolios of IT systems in firms which 
can contribute to their entrepreneurial actions.