DETERMINING THE EFFECT OF INFORMATION TECHNOLOGY (IT) INNOVATION ON TECHNOLOGICAL CAPABILITIES: A RESEARCH ON ENTERPRISES MANUFACTURING IRON STEEL AND BY-PRODUCTS IN TURKEY

In production management, the resource based view is evolving according to the availability of infrastructure in globe ascends and organizational dimensions gain importance as the need for qualified labor emerges. So, the future of enterprises is more prone to the capabilities to use technological competences and information technology (IT) in a more appropriate manner. There is no valid in any case theory of IT innovation and technology management as Rush et al., 2007: 221 claims, so regional policies are needed to be deployed. Moving here, the present study investigates the relationship between IT innovation and technological capabilities in iron steel by products cluster located in Turkey. A questionnaire adopted from the literature is applied to 180 employees and analyses are conducted via the use of descriptive statistics, EFA, CFA and SEM. The results revealed that perceived feasibility is affecting the technological capabilities of the sample by half. Whereas propensity to use affects technological competences by a quarter. Implications for future research and some policy proposals are also included. It is hoped that this can fulfill partly the empirical result limitation in the literature.