Effects of information technology alignment and information sharing on supply chain operational performance

The paper aims to investigate the effects of information technology (IT) alignment and information sharing on operational performance in the context of supply chain. Based on the resource-based view, this study identifies IT alignment and information sharing as specific resources/capabilities for supply chain partnership. Data from 141 Chinese manufacturers are collected to test the relationships among IT alignment, information sharing, and operational performance. The results show that (1) both IT alignment and information sharing have direct and positive effects on operational performance, (2) IT alignment has an indirect effect on operational performance through information sharing, and (3) IT alignment and information sharing have different emphases in operational performance improvement. The resource-capability-performance paradigm is extended to supply chain context in the emerging economy. Chinese managers may have different emphases on IT resource/information sharing capability deployment for operational efficiency and effectiveness.     

Business–IT alignment maturity of companies in China

Business–IT alignment has been consistently ranked as the number one concern of IT and business executives. Maintaining the alignment has been found to lead to stronger business performance, higher perceived value of IT and improved IS strategic planning; therefore addressing the issue is both important and timely. The economic growth in China in the last decade has led to greater availability of IT and its widespread use as a critical resource. Despite the increasing interest in Chinese IS issues by both researchers and practitioners, empirical research focusing on human- and organization-related IS issues in China is scarce. Using data collected from 130 business and IT executives from 22 companies in China, 11 of which were multinationals operating in China, we explored several questions in the area of business–IT alignment. An instrument designed to measure the six dimensions of business–IT alignment maturity was cross-validated using a sample of companies in China. Then, the instrument was refined to develop a measurement method that offered better reliability and validity in the context of Chinese companies. The relationship between the alignment maturity dimensions and IS strategic alignment was then examined. Finally, the alignment maturity of companies in China was assessed to provide a snapshot of business–IT alignment in China. A comparison between the 11 Chinese domestic companies and 11 multinational operating in China provided insight into the different IT practices of the two types of companies. Implications for researchers and practitioners are discussed.     

Exploring the perceived business value of the flexibility enabled by information technology infrastructure

We developed a multidimensional definition of IT infrastructure (ITI) and applied it in exploring the perceived strategic payoffs of ITI-enabled flexibility. We began by developing a typology of theoretical approaches that can be used to organize the literature and then developed a multidimensional model by conceptualizing how flexibility can be enabled through technical, human, and process elements of ITI and how these are interrelated. We used a resource-based view of the firm and a dynamic capabilities perspective to account for competitive impacts of the flexibility. Finally, we hypothesized on the moderating effects of organizational size and reporting level of the top IT executive. Data collected from 293 IT managers showed that the range of managerial ITI capabilities, which were positively affected by all areas of IT personnel knowledge and skills, was responsible for the competitive impacts of the ITI-enabled flexibility. Multigroup analyses showed that large organizational size or reporting to the CEO reduced the positive effects of the range of managerial ITI capabilities on competitive impacts.     

Does it pay to align a firm’s competitive strategy with its industry IT strategic role?

While researchers have increasingly recognized the importance of information technology (IT) in leveraging a firm’s competitive strategy for achieving superior firm performance, our understanding of the nature of how a firm’s competitive strategy aligns with its industry IT strategic role and how such alignment influences firm performance remains limited. Drawing upon strategic alignment perspective, this study aims to theorize and empirically test how the firm’s competitive strategy (i.e., cost leadership, differentiation, and dual strategy) aligns with its industry IT strategic role to improve firm performance. Based on the data of Chinese publicly listed firms during 2009–2015, our results indicate that different competitive strategy aligns with different industry IT strategic roles for achieving superior performance. Specifically, cost leadership strategy aligns with automate IT strategic role, dual strategy aligns with informate IT strategic role, and differentiation strategy aligns with transform IT strategic role in generating superior firm performance. We also discuss the theoretical and practical implications of the current study.     

Factors facilitating the use of Information Technology for competitive advantage: An exploratory study

A content analysis of fourteen published cases showed the importance of an organization's existing systems in the use of information technology for competitive advantage. Such uses were often precipitated by threatening external events. There were little support for the literature's assertions that competitive pressure is a key factor motivating strategic uses of IT. There were indications that understanding the potential strategic processes may lead to greater IT utilization. Finally, the study confirms the importance of customer needs and management support as factors facilitating the use of IT for competitive advantage.     

Alignments between the depth and breadth of inter-organizational systems deployment and their impact on firm performance

This paper explores the performance impact of alternative deployment alignment strategies for inter-organizational systems (IOS) in supply chains. Based on the asset orchestration perspective, we consider two deployment alignment strategies, namely, balanced alignment and reinforcing alignment, which represent strategic choices made by firms in relation to the emphases placed on depth and breadth of IT deployment in supply chain operations. The results of our empirical study show that the depth and breadth of IOS deployment enhance a firm's competitive performance through operational improvement, and the balanced alignment between IOS depth and breadth enhances the firm's competitive performance.     

How do IT capabilities create strategic value? Toward greater integration of insights from reductionistic and holistic approaches

After more than two decades of intensive research, researchers are still struggling to explain the strategic value of information technology (IT) capabilities. The current study suggests that sufficient advancement has not been made in this area of research because of the gap between the richness of theoretical formulations and the minimalism of the reductionistic approach taken to test them. While theoretical formulations describe complex relationships between IT capabilities and competitive advantage, reductionistic explanations rely on models that represent the integration of simple relationships. This area of research can, therefore, benefit from the wider adoption of a holistic approach that attributes competitive advantage to profiles of IT capabilities. This study draws on the resource-based view and configurational theory to develop two reductionistic (direct and mediation) and two holistic (gestalt and profile-deviation) models of IT strategic value. The four models are tested with data collected from IT managers. The empirical analysis illustrates the insights that can be gained by drawing on the relative strengths of reductionistic and holistic explanations of IT strategic value.     

A methodology of constructing a decision path for IT investment

Information Technology (IT) may be used for organizational efficiency, but should also be flexible to adapt to the rapidly changing competitive business environment. In competitive business circumstances, management continually asks: (1) How flexible must the firm be in investing in IT in order to meet unknown business needs in the future? At the same time, how efficient must the firm be in order to meet current business needs?; (2) How well must the firm align its business strategy with IT investment in order for it to support its strategic goals?; (3) how to construct a decision path for IT investments with respect to flexibility, efficiency and alignment between business strategy and IT investments?Although many researchers have struggled to answer these questions, they generally provide no means for incorporating these factors into the IT investment decision process.This paper suggests a method that identifies the degree of flexibility required (α-value), and accounts for and incorporates the α-value in making IT investments. The proposed method is based on a product development method called Quality Function Deployment (QFD). It will be applied to a real case of the “H-company” in Korea to validate and evaluate the proposed methodology.     

Enterprise architecture,IT effectiveness and the mediating role of IT alignment in US hospitals

Despite the possible benefits of implementing healthcare information technologies, successful implementation of effective healthcare information technology is constrained by cultural and regulatory concerns and technical obstacles encountered when establishing or upgrading an organisation's enterprise infrastructure. In this paper, we advance Ross' four‐stage model of enterprise architecture maturity as a valuable IT resource for helping healthcare organisations sustain a competitive advantage. We use partial least squares (PLS) structural equation modelling to analyse survey data from 164 US hospitals at different stages of EA maturity. Our results provide evidence that enterprise architecture maturity directly influences the effectiveness of hospitals' IT resources for achieving strategic goals. Further, enterprise architecture maturity indirectly influences the effectiveness of IT resources when IT alignment is incorporated as a mediating variable. We discuss the implications of our findings for research and practice and suggest opportunities for future research.     

A Demand-Side Approach to Telecommuting

The juxtaposition of available enabling technologies and low demand for telecommuting focuses attention on the need for businesses to understand how more flexible and innovative workplace strategies can help them gain competitive advantage. The integrated workplace strategies approach leverages settings, technologies, and management practices to support more effective ways of working and achieve the seemingly contradictory goals of reduced costs, improved performance, enhanced flexibility, improved air quality, and reduced traffic congestion.     

Proactive or reactive IT leaders? A test of two competing hypotheses of IT innovation and environment alignment

When does it benefit a firm to take a lead in innovation with information technology (IT)? How should a firm align its IT innovation with a dynamic industry? In addressing these questions we present a typology of IT Innovation and Environment Alignment (ITIEA) based on a firm's IT innovation strategic orientation and the industry environment. The traditional ‘fit’ perspective predicts that a firm that matches its IT innovation with a dynamic environment would obtain performance benefits. In contrast, the ‘options’ perspective suggests that a firm that takes advantage of a stable environment to proactively pursue IT innovation and develop IT capability as real options would obtain performance advantage. We employ a quasi-experiment design to test these two competing hypotheses using archival data of IT leaders over a time frame of 6 years. We perform a longitudinal analysis of the performance change trajectories of proactive and reactive IT leaders over time. The results indicate a general support for the ‘options’ perspective that proactive IT leaders that lead in innovation with IT in relatively stable environments are found to consistently outperform reactive IT leaders in overall performance, allocative efficiency, and cost efficiency in management process. However, interestingly, the results also show a partial support for the ‘fit’ perspective that reactive IT leaders that emphasize intensive deployment of IT innovation in dynamic environments are found to obtain a cost advantage in production and operation process over time. The findings offer practical implications for managers to better engage in IT innovations to create and sustain competitive advantage. Synthesizing options thinking and dynamic capability perspective, we provide a framework to better understand IT innovation, dynamic environment, and performance outcomes. The findings also shed useful light on whether, when, and how to innovate with IT for sustained competitive advantage.     

USER SATISFACTION WITH EISs

The juxtaposition of available enabling technologies and low demand for telecommuting focuses attention on the need for businesses to understand how more flexible and innovative workplace strategies can help them gain competitive advantage. The integrated workplace strategies approach leverages settings, technologies, and management practices to support more effective ways of working and achieve the seemingly contradictory goals of reduced costs, improved performance, enhanced flexibility, improved air quality, and reduced traffic congestion.     

Ideal patterns of strategic alignment and business performance

Strategic alignment or “fit” is a notion that is deemed crucial in understanding how organizations can translate their deployment of information technology (IT) into actual increases in performance. While previous theoretical and methodological works have provided foundations for identifying the dimensions and performance impacts of the strategic alignment between IT, strategy, and structure, few attempts have been made to test the proposed theory empirically and operationalize fit systemically. Based on a gestalt perspective of fit and theory-based ideal coalignment patterns, an operational model of strategic alignment is proposed and empirically validated through a mail survey of 110 small firms. Using cluster analysis, it was found that low-performance firms exhibited a conflictual coalignment pattern of business strategy, business structure, IT strategy, and IT structure that distinguished them from other firms.     

Information systems support for CNC machinists: Evaluating the impact of information technology at the shop floor

As information technology (IT) capabilities increase, manufacturing businesses are realigning their information systems infrastructure to remain competitive. This has resulted in substantial increases in IT use in technical areas of the business. Nevertheless, conventional paper‐based information systems are still common at the shop floor. Hence, manufacturers need to understand whether there is benefit in extending IT functionality to the shop floor. By evaluating the impact of hypermedia information systems on the independent decision‐making and communication capabilities of computer numerical control (CNC) machinists, this research aims to identify the shop floor benefits of replacing existing paper‐based systems with this relatively new technology in this context. The research findings have wide‐ranging implications for further research into the strategic implementation of shop floor IT and for future work structures in the metal cutting industry. © 2007 Wiley Periodicals, Inc. Hum Factors Man 17: 299–314, 2007.     

The impact of industry contextual factors on IT focus and the use of IT for competitive advantage

Only limited empirical evidence has confirmed the effectiveness of strategic information systems planning (SISP) and there is no evidence that investment in mission-critical systems leads to improved performance under conditions of environmental uncertainty and information intensity. This study tests the extent to which such contextual factors impact business dependence on IT and two SISP practices: IT participation in business planning and the alignment between the IT and the business plans. It also examines the influence of IT dependence and SISP on the use of IT for competitive advantage. Using structural equation modeling on postal survey data from 161 firms, it found a positive and significant impact of the contextual factors on business dependence on IT and the two SISP practices and between these factors and the use of IT for competitive advantage. Data also revealed significant differences between industry types and environmental uncertainty but not information intensity. Implications are discussed.     

The synergistic effects of IT-enabled resources on organizational capabilities and firm performance

Computing the value of IT investments and clarifying how the portfolio of IT/IS resources affect a firm's performance and sustainable competitive advantage are critical issues today. We attempted to develop an effective measurement technique and use organizational theory to discover the strategic role of IT-enabled resources in the firm's competitive agenda. Based on a resource-based view of the firm, we proposed a way to evaluate the synergistic effect of such resources on the firm's capabilities, as they, influence the firms’ strategic objectives and improve its financial performance. The technological, human, and organizational resources work together to generate sub-additive cost and super-additive value synergies. Operations, R&D, and marketing capabilities allow firms to implement a business strategy that reflects its customer needs. A survey was conducted to check our framework. Our findings should provide valuable decision guides for practitioners when choosing a portfolio of IT/IS resources for implementing business strategies.     

Uncovering ITIL claims: IT executives�� perception on benefits and Business-IT alignment

Over 45% of companies are estimated to use IT Service Management (ITSM) frameworks, yet, these frameworks can be imitated and hence the competitive advantage gained from these will quickly become obsolete. Therefore, research on the benefits of ITSM must focus on both operational and strategic benefits. An international survey of 441 firms was conducted to examine the benefits that IT Infrastructure Library (ITIL), the de-facto ITSM framework, provided to the IT organizations. The research focused on how (1) operational benefits, and, (2) strategic positioning of the IT organizations, specifically how the perceived level of Business-IT alignment maturity evolved as the adoption of ITIL increased. Results indicate that as the adoption of ITIL increased, the number of realized operational benefits increased, as well as the levels of maturity of the Business-IT alignment. This indicates that the further the implementation of ITIL the greater the operational and strategic benefits to the organization. Implications for practitioners and researchers are also discussed.     

CIOs: Pushing the IT business value envelope

Successful businesses understand the needs of customers and their markets, and execute business strategies to establish their competitive positions. Consistent with their business goals, these businesses use extract commodities, make goods, deliver services, and provide other tangibles and intangibles to stay competitive. They also reevaluate their business vision, increase business values, and change to gain advantage over their competitors. IT not only has been essential to business management and operation, but has also provided significant strategic leverage to businesses.     

Enhancing enterprise agility by deploying agile drivers, capabilities and providers

Agility is perceived as the dominant competitive vehicle for all organizations in an uncertain and ever-changing business environment. When embracing agility, important questions must be asked. What precisely is agility and how can it be measured? How can one adopt the appropriate agile enablers to develop agility? How can one effectively assist in enhancing agility?For an enterprise to achieve agility, it is critical to create an effective integrated procedure within the business that coordinates and ensures that the agility providers can satisfy the agility capabilities and cope with drivers, ultimately transforming all of these attributes into strategic competitive edges. However, the existing literature on enterprise agility has failed to sufficiently address the relevant perspectives in such analyzes. The relationship matrix in the quality function deployment (QFD) method provides an excellent tool for deploying important concepts and linking processes. This report suggests a new agility development method for dealing with the interface and alignment issues among the agility drivers, capabilities and providers using the QFD relationship matrix and fuzzy logic. A fuzzy agility index (FAI) for an enterprise composed of agility capability ratings and a total relation-weight with agility drivers was developed to measure the agility level of an enterprise. This report also describes how this robust approach has been applied to develop agility in a Taiwanese information technology (IT) product and service enterprise. This development project revealed that the proposed framework and procedures can enhance the agility of an enterprise as well as ensure a competitive edge.     

Enhancing workplace competence acquisition through a persuasive system

The continuous development of individual competences is a fundamental instrument for organizations aiming to achieve long-term competitive advantage. Digital technologies can play a pivotal role in competence acquisition by facilitating the learning process. This paper describes the design, development, and evaluation process of a competence acquisition mobile app incorporating persuasive systems principles. A pilot study involving managers from an IT consulting firm was used to evaluate the artifact. This was followed by a full-scale deployment of the mobile app with management and staff of a supermarket chain. The results indicate that the use of the mobile app effectively improved users’ learning process outcomes, as well as their ability to deploy the new competence. Theoretical and practical contributions are discussed.