1. ¹Iowa State University, LOMIS, Ames, IA, USA
2. ²Center for Management and Technology Research, Moore School of Business, University of South Carolina, Columbia, SC, USA

Correspondence: William J. Kettinger, Center for Management and Technology Research, Moore School of Business, University of South Carolina, Columbia, SC 29208, USA Tel: +1-803-777-2940; E-mail: bill@sc.edu

Received 15 May 2002; Revised 18 July 2003; Re-revised 4 January 2004; Re-revised 29 May 2004; Accepted 14 June 2004; Published online 26 October 2004.

Abstract

The net-enabled business innovation cycle (NEBIC) model describes a path by which firms employ dynamic capabilities to leverage net-enablement. Some firms strategically aspire to follow this path in a more gradual fashion striving for business process improvements (incremental strategy) while others aspire to exploit rapidly net-enablement to achieve business innovation (leapfrogging strategy) that offers completely new market opportunities. Study results suggest that firms adopt accelerated leapfrogging strategies when faced with more severe external competitive pressures. This combined with strong leadership, a propensity to embrace internal user involvement, IT maturity, and an accommodating firm structure, as indicated by path accelerators, result in higher aspirations for business innovation. Firms shying away from leapfrogging strategies tend to protect existing customers and employees from more radical changes. These firms sometimes lacked the internal capability to enact more aggressive strategies and thus had to acquire the necessary capabilities before aspiring for business innovation.