NEBIC: A Dynamic Capabilities Theory for Assessing Net-Enablement

Acknowledgements: The development of NeBIC theory has benefited greatly from the detailed guidance of the editor, associate editor, and reviewers. I also wish to thank research associate Michael Williams and Arvin Sayam for their valuable assistance and healthy debate in maturing the ideas presented here. Abstract We propose the Net-enabled Business Innovation Cycle as an applied dynamic capabilities theory for measuring, predicting, and understanding a firm's ability to create customer value through the business use of digital networks. The theory incorporates both a variance and process view of net-along with the processes and events that interrelate them as a cycle. The sequence of these theorized relationships for net-enablement asserts that choosing IT precedes rather than aligns with corporate strategy. The theory offers a logically consistent and falsifiable basis for grounding research programs on metrics of net-enabled business innovation.