Abstract: This study proposes that it is information technology capability rather than information technology(IT) plays a significant role in determining the competitive position. Drawing from resource theory and IT literature, the authors examine the concept of IT capability and recognize four kinds of carriers and five levels of IT capability. Then based on these concepts the authors develop three paths of acquiring competitive advantage through IT capability and try to provide some implications to avoid the "IT investment dilemma".

Key words: information technology, information technology capability, competitive advantage