This study examines strategy applied by firms to leverage emerging information technology (IT) for service innovation. In this paper, the position analysis of strategy is developed on two dimensions, IT capability and complementary resources. We investigated the convenience store industry in Taiwan, which is an intensively competitive market. By analyzing multiple cases, we identified four types of strategy employed by firms to leverage IT-enable service innovation. By tracking the market evolvement, we identified three paths of strategy shifting with the resource reconfiguration. This analysis results explain how firms use continual strategic shifts and resource reconfiguration to sustain the competitive advantages of IT-enabled service innovation in a rapidly changing market.
IT-enabled service innovation, IT strategy, IT capability, complementary resource, resource reconfiguration