The human resource's influence in shaping IT competence

The purpose of this paper is to study the influence of an organization's human resource on its IT competence. The IT human resource is examined in terms of worker tenure and worker composition, and IT competence is defined in terms of IT‐business relationships, IT‐business knowledge, and IT infrastructure.

The study examines the activities of one organization's software development group over a three‐year period, 2004‐2006. The organization is a US‐based financial services firm, and data are drawn from archived software development project information.

The findings help to clarify how changes in the IT human resource influence a firm's IT competence. A model of organizational IT competence is developed and discussed, along with propositions for future study.

The propositions developed in this study provide direction for future IT value research, and are key to the understanding the development of a firm's IT competence.

The paper's findings will help organizations understand how employee turnover and the blending of employees and contract workers can impact the long‐term effectiveness of a firm's software development function.

Previous models of IT value suggest that IT competence is key in a firm's performance. However, those models do not address the changing nature of the IT human resource. The proposed model underlies that organizations can benefit from changes in worker tenure and composition (dimensions of the IT human resource) over time provided they understand and appropriately manage their impact on IT competence.