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PurposeThe goal of this paper is to identify core IT value drivers in firms and to model them as an IT production function to help disclose and measure the IT value creation process and to guide managers in seeking adequate ways of employing the IT resource.Design/methodology/approachBased on a critical review of the literature on the resource‐based view, an IT value framework based on the constructs IT capability, resource, and routine is developed and then formalized as an IT production function.FindingsOrganizational routines are decisive for turning firm resources into an IT capability and in turn into better business process performance. Shows how the IT value creation process in general and routines in particular can be measured and formalized.Practical implicationsAs the interaction between IT and business units is crucial for IT value generation, organizational routines provide for important knowledge flows that turn firm resources into value generating capabilities. Proposes a concrete method to measure and evaluate these routines and thereby contribute to making the IT resource controllable.Originality/valueThe main contribution is the identification and analytical formalization of the role of routines for IT value creation. Shows how insights from the resource‐based view, microeconomic theory (Cobb‐Douglas/CES production function), and Granovetter's strength of ties argument can be used to describe, measure, and guide IT value creation and to develop an IT production function.

Purpose– The purpose of this paper is to outline the potential of information technology, particularly social media and their affordances, in supporting knowledge creation within organizations.Design/methodology/approach– This is a conceptual paper which integrates the literature on both knowledge creation and social media.Findings– Social media may support knowledge creation by affording new types behaviors that were not possible with previous forms of computer-mediated communication.Research limitations/implications– The paper contributes to theory development by integrating knowledge creation theory and addressing the role of technology, more specifically social media and their affordances, in the knowledge creation process.Practical implications– The results of the paper will help managers to understand which social media affordances support the distinct knowledge creation processes and target their use of technologies within the organization accordingly.Originality/value– The paper is of high theoretical and practical relevance. It bridges two previously unconnected literatures and, in doing so, provides an innovative perspective on how social media and their affordances may support knowledge creation.