Information and communication technology (ICT) use has an impact on innovation
capability of the firms. ICT use facilitate collaborative work and enable knowledge
sharing. Hendriks (1999) identified the potential roles of ICT with relation to
knowledge sharing in four areas: Overcoming constraints; increasing range and
speed of information access; improving task performance, and using technology to
identify the elements. Choo et al (2000) explained the functionalities of ICT as
follows: (a) facilitating the collective shared process of knowledge creation in
which dialogue and negotiation are central concepts ('communication space'), (b)
offering possibilities to build and unlock organisational memory ('content space'),
(c) offering possibilities for cooperation independent of time and/or place ('collaboration
space'). ICT enables an integration of three spaces in an organisation.
Previous studies (Flanagin, 2002; Lueg, 2001; O'Leary, 1998; Loudon and Loudon,
1997) also addressed the potential benefits of ICT as facilitator of knowledge
sharing. Following the previous argument, it can be asserted that firms with ICT use
in place are also more likely to have the potential for innovation capability. Increased
and improved communication along with cooperation is expected to help
the organisation in terms of innovation capability. So it is hypothesised that ICT use
positively infiuence innovation capability.