Exploring the relationships between IT competence,innovation capacity and organizational agility

Business environments today are characterized as being very dynamic and hyper competitive. Organizations in these environments have to be agile in order to adapt their strategies and actions to be successful. While it is recognized that information technology can enable firms to be agile, there is a limited understanding of the mechanisms through and the contexts in which Information Technology (IT) enhances agility. This study examines two key antecedents of organizational agility, namely the IT competence of a firm and its innovation capacity and, examine their independent and joint effects on agility. We test our model using data collected from large firms in the US. The results provide strong support for our model. We found that firms with superior IS capabilities coupled with an aggressive IT investment orientation create digital platforms that enable them to be agile. We also found that the innovation capacity of the firm has a positive relationship with organizational agility and that firms with higher innovation capacity are better able to leverage their digital platforms to enhance agility. Our results indicate that organizational agility has a strong positive impact of firm performance. We interpret and discuss these results and their theoretical and practical implications.     

An empirical examination of a process-oriented IT business success model

The value of information technology (IT) to modern organizations is almost undeniable. However, the determination of that value has been elusive in research and practice. We used a process-oriented research model developed using two streams of IT research to examine the value of IT in business organizations. One stream is characterized by examining how IT and non-IT variables affect other so-called IT success variables. The second stream is commonly referred to as IT business value, defined as the contribution of IT to firm performance. The resulting research model is referred to in our paper as the IT business success model. Data was collected from 225 top IS executives in fairly large organizations to empirically examine several hypotheses derived from theory concerning the causal nature of the IT business success model. A set of measures for the IT business success model was developed through an intense investigation of the IT literature. The measures were tested for validity and reliability using confirmatory factor analysis. The hypotheses that resulted from past research and conceptually illustrated in the research model were assessed using structural equation analysis. The implications of these findings and the limitations of the study are discussed in an effort to contribute to building a process-oriented theory base for IT business success at the organizational level of analysis.     

The role of IT application orchestration capability in improving agility and performance

This paper investigates how IT application orchestration – a dynamic capability encapsulating a firm’s ability to refresh its application portfolio through a process of building, buying, and retiring IT applications – impacts firm performance. We propose a conceptual model in which the effect of IT application orchestration on firm performance is mediated by process agility. We further propose that a firm’s strategic orientation moderates the effect of IT application orchestration capability on process agility. Analysis of data from an international survey of IT executives supports our proposed hypotheses. This research contributes to the emergent literature on dynamic capabilities by proposing and testing a theory of how IT application orchestration capability affects agility and firm performance.     

Maximizing the positive influence of IT for improving organizational performance

In the analysis of whether information technology (IT) has an impact on organizational performance, focus is usually placed on the relationship between an organization’s investments in IT and that organization’s performance. Therefore, it is standard to devote special attention to the size and complexity of the organization, to the investments in other organizational resources that may affect the performance of IT, and to the manner in which the two variables are measured. However, one area that has not been well explored is the manner in which the relationship between investments in IT and organizational performance develops. In this article, we show empirically that the planning and management of IT influence the organization’s endowment of resources (physical and human), which consequently has positive effects on each of the IT-related areas usually found in organizations (applications, reliable and secure systems and communications, and training and support). In turn, the functioning of these areas influences the impact of IT on the organization, which then has positive effects on organizational performance. We have used data corresponding to IT management in Spanish universities, as well as independent rankings that are useful for evaluating their performance.     

Impact of IT Governance and IT Capability on Firm Performance

Based on resource-based and strategic choice theory, this research empirically validates that IT governance is an important antecedent of IT capability, which in turn results in improved firm performance. This article contributes to the IS literature by proposing a comprehensive measure of IT governance based on secondary data, and simultaneously examining the impact of IT governance and IT capability on firm performance.     

Organizational competence for harnessing IT: A case study

In spite of decades of discussion and research into the benefits of the use of IT in the organization, it has been difficult to prove a positive gain. Literature on IT management has reported more cases of failed implementations than of success. We believed that developing organizational competencies both helped in harnessing IT and also in gaining competitive advantage. Conceptual schema for developing this was based on the theory of strategic competence, which formed the basis of our work. We undertook a case study to prove this. Findings suggested that three broad categories of competence were necessary for harnessing IT. A number of facilitating competencies were also found and are presented.     

基于战略匹配和IT能力的企业IT项目决策

为将战略匹配思想和IT能力对1T项目的影响转化为量化模型,支持企业更科学地进行IT决策,引入网络层次分析法模拟企业战略与IT战略之间双向对应和协同关系,分别借助Porter的战略理论和Henderson的战略匹配模型来代表企业战略和IT战略。考虑各种IT能力对IT战略和IT项目的影响,提出基于战略匹配和IT能力的IT项目决策模型,并以实例说明该模型的使用方法和有效性。     

The Effect of IT Governance Maturity on IT Governance Performance

There are several best practice based frameworks that detail effective arrangements for the internal structure of an IT organization. Although it is reasonable that there is a correlation between the quality of the internal structure of an IT organization – labeled IT governance maturity, and the external impact of the same IT organization on the business – labeled IT governance performance, this has not been validated. The results, based on 35 case studies, confirm the hypotheses of a positive correlation between IT governance maturity and IT governance performance. Among IT processes described in 34 references, the internal structure of the IT organization, clearly defined organizational structures and relationships, mature quality management, and cost allocation show the strongest positive correlation to IT governance performance. The maturity of project management and service level management, as well as performance and capacity management, show almost no correlation to IT governance performance. The findings can be used to improve current frameworks for IT governance.     

Relation of CIO background,IT infrastructure,and economic performance

The literature of the past three decades has not provided a consistent picture of payback for IT investment. Firm strategies and infrastructure play a part in determining return on investment and, in recent years, chief information officer (CIO) characteristics have been cited as essential factors in ensuring economic returns for IT investment. In our study we related CIO background and attitude toward IT investment to the objective measures of a firm's performance. The financial measures tended to be higher when the CIO was from IT rather than general management, however, an IT manager in a firm that had a strategic orientation to IT rather than a utilitarian one was more likely to have higher financial performance. Thus, although a CIO should have a technological background, the CIO who has a strategic rather than utilitarian orientation is more likely to help in forming a highly profitable company.     

Managing culture creep: Toward a strategic model of user IT culture

This article describes a framework of IT user culture that has implications for organizational IT strategy. The research was conducted in multiple settings with a grounded theory approach. The resulting framework is anchored to nine archetypal IT user profiles and encompasses their inter-group dynamics. By adopting a cultural perspective on IT usage, the framework can inform IT adoption and usage strategy with possible cultural antecedents and determinants of usage constructs common in IS research. The proposed framework suggests how management can influence the migration of IT user culture (culture creep). This framework can also enrich other acceptance models in order to more fully consider the human factor during IT implementation and adoption. The results underscore the importance of culture-customizing organizational IT socialization, training and evolution programs.     

The dual role of IT capabilities in the development of digital products and services

Past research on the business value of information technologies (IT) has demonstrated the positive contribution of IT capabilities (IT-C) to product innovation performance. However, with the advent of digital technologies, a new kind of product innovations gained importance: digital product and service innovations (DPI). As a consequence of their idiosyncratic characteristics, the usefulness and validity of existing product innovation management concepts cannot be transferred to the context of DPI without further ado. Accordingly, this study reinvestigates the role of IT-C in the specific context of DPI. Therefore, we begin with a differentiation of DPI from traditional, non-digital product innovation. Then, we propose that IT-C affect the performance of DPI projects via two paths. First, based on the notion that DPI rely on the use of innovative IT, we assume that IT-C directly impact DPI performance. Second, following prior research that has argued that the performance contribution of IT-C is mediated by other organizational intermediaries, we assume that IT-C also indirectly contribute to DPI performance through their positive influence on other organizational capabilities. One such organizational capability that mediates the influence of IT-C on DPI performance is a firm’s DPI capabilities (DPI-C). DPI-C allow firms to deploy their digital resources for DPI purposes and, thus, are an important antecedent for DPI performance. To test our assumptions, we use partial least squares–structural equation modeling technique and analyze survey data collected from DPI projects across different industries in Germany, Austria, and Switzerland.     

Strategy, IT applications for planning and control, and firm performance: The impact of impediments to IT implementation

Our study examined the association among strategy, the extent of IT applications to 12 planning and control functions, and firm performance. Special attention was paid to the moderating effect on these relationships of 15 technical, human, and organizational impediments to IT implementation. We analyzed survey data obtained from 296 Taiwanese companies, supplemented by financial data from publicly disclosed financial reports. Results indicated that strategy significantly influenced the extent of IT applications for planning and control. In turn, the extent of IT applications had a significant direct effect on firm performance, while the direct effect of strategy was insignificant. The relationship between strategy and the extent of IT applications, and between the latter and firm performance were both stronger when the level of impediments to IT implementation was low. The findings went beyond these general relationships to reveal systematic differences in the specific IT applications and impediments of firms pursuing different strategies.     

企业信息化建设成功之路——IT治理

IT治理是以企业战略为导向，以IT业务过程和IT服务的改进为手段，合理利用IT资源，规避IT风险的动态改进过程。本文从战略管理的角度分析企业信息化建设，认为IT实施与战略目标的背离是其失败的主要原因，并以COBIT模型为例论述了IT治理的流程。     

IT valuation in turbulent times

This paper investigates performance impacts of two types of IT value practices – efficiency and knowledge management (KM) – by taking two external environmental factors – dynamism and hostility – into account. A survey of IT managers was conducted to assess the environmental conditions under which one mode of value practice or the other becomes more salient. Results suggest that despite the apparent value of knowledge management in the new economy, IT managers continue to emphasize the traditional orientation of efficiency. This tendency persists in highly dynamic and hostile industrial environments. Interestingly, however, when these environmental factors are controlled for, KM-based IT valuation clearly pays off for firm performance.     

Board-level IT governance and organizational performance

Research on the strategic management of Information Technology (IT) resources has mostly focused on the oversight provided by the management team as a means to increase organizational performance. In recent years, boards of directors have also increased their involvement in IT matters, and various theoretical lenses suggest that this oversight too has the potential to influence organizational performance. Hence, this study synthesizes the resource-based and contingency views of MIS with corporate governance theories, and examines key antecedents and consequences of board-level IT governance (ITG) using a multi-method approach. Structural Equation Modelling analysis applied to organization-level data collected from 171 board members suggested that the level of ITG exercised by boards was contingent upon the organization's ‘IT use mode’, along the two dimensions of need for (a) fast and reliable IT, and (b) new innovative IT. But, the findings further suggested that the contingency approach may be suboptimal because it can cause new ways of leveraging IT to be ignored. High levels of board-level ITG, regardless of existing IT needs, increased organizational performance. This phenomenon was illuminated with applicability checks. Moreover, content analysis and structured interviews with board members further enriched these insights.     

Explaining IT governance disclosure through the constructs of IT governance maturity and IT strategic role

This study investigates the relation between the maturity of IT governance processes and the IT governance disclosure of firms. Furthermore, it examines whether the strategic role of IT in an industry induces systematic variation in IT governance disclosure. Based on a content analysis of annual reports and a field survey on the maturity of the implementation of COBIT processes, the results demonstrate a role of IT governance frameworks in stimulating accountability and transparency via enhanced external reporting of relevant IT information to external stakeholders, in particular in settings where the strategic role of IT is high.     

Firm strategic profile and IT outsourcing

IT outsourcing research has often been at the transaction level, focusing on the role of the characteristics of the IT activities as the antecedents of outsourcing decisions. The present study extends past research efforts examining the relationships between organizational level variables—in particular the business strategy—and the decision to outsource. Results show that prospectors and analyzers are more aggressive in their use of outsourcing for IT operations. However, no differences between the behaviour of the different strategic groups were found for maintenance activities, suggesting that these activities are too far from the core of the organization to be influenced by strategic profile.

A meta-analysis of relationships between organizational characteristics and IT innovation adoption in organizations

Adoption of IT in organizations is influenced by a wide range of factors in technology, organization, environment, and individuals. Researchers have identified several factors that either facilitate or hinder innovation adoption. Studies have produced inconsistent and contradictory outcomes. We performed a meta-analysis of ten organizational factors to determine their relative impact and strength. We aggregated their findings to determine the magnitude and direction of the relationship between organizational factors and IT innovation adoption. We found organizational readiness to be the most significant attribute and also found a moderately significant relationship between IT adoption and IS department size. Our study found weak significance of IS infrastructure, top management support, IT expertise, resources, and organizational size on IT adoption of technology while formalization, centralization, and product champion were found to be insignificant attributes. We also examined stage of innovation, type of innovation, type of organization, and size of organization as moderator conditions affecting the relationship between the organizational variables and IT adoption.     

Does IT pay to focus? An analysis of IT business value under single and multi-focused business strategies

Previous research finds that firm performance is highest when firms maintain a singular strategic focus as opposed to a multi-focused strategy. Yet, from an IT perspective, there is still some debate as to whether IT business value or the contribution of IT to firm performance is also maximized when firms maintain a single-focused strategy. Using the notion of value disciplines to model strategic foci, we find in a matched survey of executives in 241 firms that IT business value is highest in firms with a multi-focused business strategy and lowest in those with a single focus. We also find a relationship between strategic foci and the primary locus of IT value within the value chain for all focus-types except those emphasizing operational excellence. If all firms are using IT to reduce operating expenses, operationally excellent firms may find it increasingly difficult to sustain a low-cost advantage over time through IT.     

It governance in the public sector: a conceptual model

Information technology governance (ITG) has been identified as an organizational ability of great importance for IT strategic alignment and the delivery of business though IT. However, the results and contribution of ITG are poorly understood. This work presents an explanatory model of the effects of IT governance mechanisms on IT and organizational performance of public organizations. To test the model, data was collected from a survey conducted in 146 Brazilian public organizations. Partial least squares analysis was applied to test the proposed model. The results indicate that (i) IT performance is positively correlated with organizational performance, (ii) relational mechanisms between IT and a business are determinant factors for the performance of IT, and also positively correlated with organizational performance, and (iii), decision structure and process maturity are not significantly correlated with IT performance.