IT Capability has traditionally been used as one of the constructs used to high-light the value of IT both to competitive advantage and firm performance. However, a school of thought is rising with the banner that IT no longer matters as a source of competitive advantage. The argument is that IT is becoming a utility like electricity and organizations need to look elsewhere for unique competitive advantage. This dissertation is therefore positioned to investigate the value (if any) of IT in today’s organisations particularly in disruptive innovation scenarios. 

Disruptive innovations (DI) are innovations that typically gain initial adoption at the fringe of a market but gradually attract the mainstream customers of an established firm thereby threatening the survival of such firms. Disruptive Innovations have caused leading firms to drop from their esteemed position not because of bad management or lack of technological skills but because they introduce a different set of business rules and performance measures. Therefore, DI can be a source of competitive advantage for the firm that successfully implements it and a cause for alarm for firms facing such disruptions. 

By adopting a qualitative study and extensive review of literature and secondary data, the dissertation explores how IT plays a role in disruptive innovations in two streams – IT as DI and IT for DI. IT as DI considers - what is the significance of IT when the disruptive innovation is a digital/IT Innovation? While IT for DI considers - what is the essence of IT in the creation or response to disruptive innovations (regardless of the type of innovation)? 

For the IT as DI study, the dissertation advances a theoretical proposition of Wickempowerment using the theory of empowerment and wicked problems to articulate the identified duality when a disruptive innovation is also a digital/IT innovation. Using IT capability as a theoretical lens for the IT for DI study, the dissertation posits that IT remains a potent source of competitive advantage in two ways. These are conceptualized as Disrupt-ability (ability to create disruptive innovations) and Disruptability (ability to be disrupted or expressed conversely as ability to respond to disruptive innovation threats). With this theoretical conceptualization, we articulate three roles of IT capabilities in disruptive innovations – IT as an enabler, IT as a sustainer and IT as a barrier.