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.     

IT centrality,IT management model,and contribution of the IT function to organizational performance: A study in Canadian hospitals

The characterization of the IT function in organizations represents a central topic of investigation in the information systems field. The main purpose of this study was to predict the contribution of the IT function to organizational performance by focusing on the centrality of IT and the IT management profile as primary determinants. A cross-sectional survey of CIOs working in Canadian hospitals reveals that IT centrality positively influences the strategic orientation of the IT management model. In turn, the stronger the strategic orientation of the IT management model in place, the greater is the IT function’s contribution to organizational performance.     

Firm-level benefits of IT-enabled resources: A conceptual extension and an empirical assessment

While the business value of IT (BVIT) is central to the IS discipline, only recently a possible chain of causation from IT assets (i.e., fungible, widely available, commodity-like, technology-based products) to firm performance has been conceptually specified. Furthermore, little empirical evidence exists regarding IT assets’ business value. In light of this paucity, this paper makes several contributions to IS research and practice. First, it advances the BVIT literature by empirically testing a model that traces a path from IT assets through IT-enabled resources to firm performance. Second, it extends the BVIT and resource-based view (RBV) literatures by explicating and testing the impact of a firm’s external environment on its IT-enabled resources. Third, it builds on recent literature to argue for, and test, two distinct forms of firm-level outcome: operational and strategic benefits. Finally, the paper contributes to managers’ and IS practitioners’ knowledge by demonstrating the transformative capacity of IT assets on the strategic potential of organizational resources. Empirically, the paper develops and employs valid and reliable scales to test the research model using survey data on IT-enabled customer service departments. The findings demonstrate that when an IT asset is combined with an organizational resource, the extent of synergy borne out of the resulting relationship can positively impact the strategic potential of the ensuing IT-enabled resource. This IT-enabled resource, in turn, is positively associated with firm-level benefits. Further, the external environment is shown to exert a positive effect on the strategic potential of outside-in IT-enabled resources. In sum, this paper offers several important conceptual and empirical contributions to a stream of research that is at the core of the IS discipline.     

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.     

IT capabilities and firm performance: A contingency analysis of the role of industry and IT capability type

Previous empirical studies examining the relationship between IT capability and accounting-based measures of firm performance reported mixed results. We argued that prior work has relied on aggregate overall measures of the firm's IT capability, ignoring the specific type and nature of IT capability; and also has not fully considered important environmental conditions that influence the relationship. Drawing on a resource-based view, we advanced a contingency perspective and proposed that IT capabilities’ impact on firm resources was contingent on the “fit” between the type of IT capability/resource a firm possesses and the demands of the industry in which it competes. Specifically, using publicly available rankings as proxies for two types of IT capabilities (internally and externally focused), we empirically examined the degree to which three industry characteristics (dynamism, munificence, and complexity) influenced the impact of each type of IT capability on measures of financial performance. After controlling for prior performance, we found there was general support for the posited contingency model. The implications of these findings are also discussed.     

Exploring the relationship between information technology investments and firm performance using regression splines analysis

Identifying the business value of information technology (IT) investments has been a major concern of managers and researchers. Various studies have addressed this issue but have provided contradictory results. Here, we explore the relationship between IT investments and firm performance using a relatively new technique, multivariate adaptive regression splines (MARS), and attempt to answer two questions: (1) do investments in IT have a positive impact on organizational productivity? and (2) for a given level of investment, what portion of the total should be invested in IT to maximize organizational productivity? Our results suggest that depending on the conditions that applied, an unbiased observer could either conclude that investments in IT has a positive statistically significant effect on productivity, or that there is a ‘productivity’ paradox. This suggests that the relationship between IT investments and organizational performance is much more complex than that found in some other studies. Our results could also provide guidance to managers who are responsible for determining the allocation of organizational resources.     

Exploring the relationship between information technology investments and firm performance using regression splines analysis

Identifying the business value of information technology (IT) investments has been a major concern of managers and researchers. Various studies have addressed this issue but have provided contradictory results. Here, we explore the relationship between IT investments and firm performance using a relatively new technique, multivariate adaptive regression splines (MARS), and attempt to answer two questions: (1) do investments in IT have a positive impact on organizational productivity? and (2) for a given level of investment, what portion of the total should be invested in IT to maximize organizational productivity? Our results suggest that depending on the conditions that applied, an unbiased observer could either conclude that investments in IT has a positive statistically significant effect on productivity, or that there is a ‘productivity’ paradox. This suggests that the relationship between IT investments and organizational performance is much more complex than that found in some other studies. Our results could also provide guidance to managers who are responsible for determining the allocation of organizational resources.     

Understanding the impact of business cases on IT investment decisions: An analysis of municipal e-government projects

This study synthesizes the extant literature to derive an integrative developmental framework for IT business cases that can be applied to diagnose the feasibility of technological investments. We then construct a theoretical model that postulates the impact of IT business case elements on the initial cost estimates of technological investments. Subsequently, our theoretical model is subjected to empirical validation through content analysis of IT business cases developed for municipal e-government projects. Findings indicate that the richness of the richness of business cases translates to more initial costs being identified in technological investments, thereby conserving resources for the organization through informed investment decisions.     

Will cloud computing make the Information Technology (IT) department obsolete?

The rapid adoption and growth of cloud computing is creating unprecedented change in the manner in which IT services are procured, managed, and deployed. Cloud computing is forcing firms to rethink traditional IT governance practices while raising new and fundamental questions for scholars and practitioners. This paper identifies the major areas of change and highlights governance issues that arise with the adoption of cloud computing. The focus of this paper is on the organizational impact on IT governance under cloud computing. The paper posits (1) that successful IT departments under cloud computing will transform into new roles that address internal customer‐facing issues and external cloud‐facing issues, (2) firms that mitigate information asymmetry under cloud computing will show higher firm performance, and (3) firms that offer superior cloud‐sourced IT service attributes of internal prices, quality, variety, and competition in the cloud will show higher firm performance.     

Valuing information technology infrastructures: a growth options approach

Decisions to invest in information technology (IT) infrastructure are often made based on an assessment of its immediate value to the organization. However, an important source of value comes from the fact that such technologies have the potential to be leveraged in the development of future applications. From a real options perspective, IT infrastructure investments create growth options that can be exercised if and when an organization decides to develop systems to provide new or enhanced IT capabilities. We present an analytical model based on real options that shows the process by which this potential is converted into business value, and discuss middleware as an example technology in this context. We derive managerial implications for the evaluation of IT infrastructure investments, and the main findings are: (1) the flexibility provided by IT infrastructure investment is more valuable when uncertainty is higher; (2) the cost advantage that IT infrastructure investment brings about is amplified by demand volatility for IT-supported products and services; (3) in duopoly competition, the value of IT infrastructure flexibility increases with the level of product or service substitutability; and (4) when demand volatility is high, inter-firm competition has a lower impact on the value of IT infrastructure.     

Balancing exploration and exploitation of IT resources: the influence of Digital Business Intensity on perceived organizational performance

Facing a barrage of novel information technology (IT), organizations must invest on the basis of the impact of IT capabilities on the organization’s performance. This research extends Bharadwaj’s (MIS Quarterly 169–196, 2000) resource-based view of the relationship between IT capability and performance by introducing both the mediating and moderating effects of Digital Business Intensity (DBI). Empirical data collected from CIO’s from US firms reveal that although IT capability positively influences organizational performance, this relationship may differ in strength at different levels of DBI. Our study also finds that IT capability is important in determining DBI, which in turn influences organizational performance. Findings highlight tensions between DBI exploration and IT capabilities exploitation. Results also suggest that companies that leverage their existing IT capabilities to drive DBI are more adept at securing performance returns. However, when DBI investments do not complement existing IT capabilities, DBI appears to dampen performance, further accentuated for high-DBI firms.     

Complementary Investment in Change Management and IT Investment Payoff

Measuring information technology payoff continues to be a challenge for organizations. Considering the impact of complementary investments on IT payoff has been proposed by recent studies. This paper examines the impact of one type of complementary investment on IT payoff: organizational change management initiatives to support IT implementation. The paper reports a case study of Cisco Systems' IT investment in an operating systems upgrade of over 34,000 computer systems in 117 countries. The findings of the exploratory case study indicate that planned communications and change management strategies developed by their Organizational Change Management group led to the smooth implementation of the upgrade process and contributed to the payoff from the IT investment, measured in terms of client satisfaction with the process and system and reduced cost and time to upgrade all systems. The findings were supported by pre- and post-implementation surveys of clients, analysis of the change management initiatives and their impact on the process, and comparison of actual and budgeted costs for the project.     

Assessing the importance of industry in the adoption and assimilation of IT: Evidence from Italian enterprises

We analysed the role of industry in determining the diffusion and business value created by IT. Data was collected for this purpose by surveying 192 large enterprises in Italy. Our research revealed three findings. First, in the material services and non-hi-tech manufacturing industries, firms had a relatively limited adoption of IT, resulting in little business impact. Second, firms’ IT spending behaviour depended on their industry type and not on their IT capabilities. However their capabilities were more important than industry in explaining why firms achieved benefits from IT adoption that depended on the previous accumulation of IT resources and other capabilities. Third, industry type determined the degree to which IT affected profitability and its effectiveness in helping firms to defend their competitive advantage. Specifically, the slower the adoption of IT in an industry, the greater its impact on the firm's profitability.The implications of these findings for managers and policy-makers are discussed.     

企业绿色IT实施的理论模型

本文通过分析企业实施绿色IT的整个过程,提出了企业绿色IT实施的理论模型。首先运用利益相关者理论,分析了利益相关者对企业实施绿色IT的影响。企业实施绿色IT有三个主要动机,分别为：经济动机,制度压力和社会责任。其次,基于企业资源理论,企业在这一实施过程中需要投入三类资源,分别是IT基础设施、IT人力资源以及其他无形资源。这三类资源的投入会影响到企业的环境绩效,即环境效率和环境效能。最后,企业的环境绩效转而会影响企业的经济绩效,在这个过程中如果企业获得了差异化优势和价格优势,则环境绩效会促进企业的经济绩效,反之则可能损害企业的经济绩效。     

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.     

Commodity or competitive advantage? Analysis of the ERP value paradox

A true e-business enabled firm needs the support from a well-tuned enterprise resource planning (ERP) system for providing real time data. However, many companies complain that after their huge investments in ERP systems, they found the ERP systems do not bring them new orders, new profits, or competitive advantage as ERP vendors claim. Academic studies also found mixed results regarding ERP’s payoff. In line with resource based view (RBV), the study proposes an integrated model to shed light on the ERP value paradox. We try to answer “With what organizational resources and by building what firm specific capabilities, the investment in ERP systems may bring firms competitive advantage”. Using a sample of 150 ERP and e-business adopters in the US, we found that (1) organizational resources such as managerial skills and organizational change management play a more important role than IT resources (ERP, e-Business technologies) in generating business integration capability. (2) However, neither IT resources nor organizational resources directly provide firms with competitive advantage. Instead, business integration capability built from the two resources plays a mediating role through which business achieves competitive advantage.     

Career transition antecedents in the information technology area

The more organizations invest in information technology (IT), the more the concern with IT personnel management has increased, namely the hiring, training and retaining of IT professionals needed to deal with such investments. In this context, two issues related to these professionals have often been observed, namely ‘turnover’ – in which the IT professional changes job but still remains in the IT area – and ‘turnaway’ – in which the IT professional abandons the IT area and assumes a job in another area in the same organization or another, usually rising to a managerial position. This work addresses the turnaway of IT professionals in Brazil. The relevance of this research is supported by the shortage of adequately trained IT professionals to work in the productive sector in this country. Therefore, by using and adapting the extant scientific literature, research hypotheses associated with the IT professional turnaway phenomenon are developed and tested via structural equation modelling. It was then concluded that exhaustion with work in the IT area, job dissatisfaction, the need to acquire further experience to remain attractive in the job market, the need for professional growth and prior and conscious managerial capacity development for career transition are the main antecedents of the career transition of IT professionals to other functional areas.     

Unpacking the effect of IT capability on the performance of export-focused SMEs: a report from China

Abstract.  Export-focused small and medium-sized enterprises (SMEs) in China face a number of barriers to success, two primary ones being the liability of foreignness and resource scarcity. In order to transcend these challenges and be able to survive/prosper in the hypercompetitive international market, where players include large resourceful multinational organizations with experience in varied national contexts, these firms need to develop different organizational capabilities. In this paper, we specifically examine the role of a key organizational capability – information technology (IT) capability – and its different dimensions, in determining performance of export-focused SMEs in China. Our study reveals that IT capability has a positive impact on such firms' performance. This finding indicates the need for their owners/managers to invest in IT capability. Further, the study also highlights specific sub-dimensions of IT capability that export-focused Chinese SMEs should (or should not) develop, so as to derive maximum performance-related gains for the minimum amount spent on IT.     

An IT management assessment framework: evaluating enterprise architecture scenarios

Enterprise architecture, EA, is an established approach for the model-based and holistic management of IT. The scope of EA is however wide and the predominant EA frameworks suggest the creation of broad and detailed models. IT management cannot control all areas spanned by the present frameworks for EA models. In order to ensure well-informed decisions, IT management has a series of questions that need to be answered. This paper proposes an assessment framework that can be used to identify relevant questions for assessments of EA and EA scenarios, within the areas of EA that IT management can control. Three top dimensions in the proposed framework are presented: IT organization, IT systems, and Business organization. The framework further includes sub dimensions for identifying questions. An application of the assessment framework, as it was applied to assess EA scenarios in a power company, is also described.     

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.