The effect of information systems capabilities on sustainability: A country-level analysis

Abstract

Using the Source-Position-Performance (SPP) framework and the literature on information and communication technology (ICT) impact, we posit that the IS capabilities owned by citizens (i.e., source of advantage) lead to ICT penetration among them (i.e., positional advantage), which in turn affects the sustainability of the country (i.e., national performance). Based on secondary data from 120 countries, our results supported the hypothesized model. Specifically, IS capabilities owned by citizens in a country appears to be a significant enabler of ICT penetration among them, which in turn lead to the management of national performance in terms of economic, environmental, and social sustainability. Post hoc analysis indicates that ICT penetration among citizens partially mediated the relationships of IS capabilities owned by citizens with economic and social sustainability. In addition, the relationship of IS capabilities owned by citizens with environmental sustainability is not mediated by ICT penetration among citizens. Our findings contribute to the theoretical discourse on ICT impact by identifying the role of IS capabilities owned by citizens in a country and provide indications to practice on enhancing its sustainability by managing ICT penetration among citizens.