Effects of strategic alignment on IS success: the mediation role of IS investment in Korea

The purpose of this research is to develop a comprehensive information system (IS) evaluation model for IS success linked to organizational performance. The primary focus of this research is to investigate the role of IT investment in business values by means of a group survey of about 300 business executives in Korea. We used the contingency theory to discover the mediation effect of IS investment on strategic alignment and IS success. In contrast to previous research, this study expanded the test scope to IS architecture and organizational structure at the operational level. The results from 273 business executives in Korea indicated that strategy integration with IT is positively related to IT investment, and IT investment is a critical antecedent of IS success. Thus, the implications of the findings are that right-directional IT investment has played an important role in the success of IT companies in Korea.     

Do you see what I see? The search for consensus among executives’ perceptions of IT business value

Since firms rarely collect data on the precise economic or financial impacts of information technology (IT), perceptions play a key role in assessing IT impacts. To the extent that executives in the same firm evaluate IT impacts similarly, it can be easier to approve future IT investments or to initiate corrective action for failing IT investments. In this study, we use distributed sensemaking theory to investigate the conditions under which executives will reach a consensus as to the extent and locus of firm and process-level IT impacts in their firm. Using data from surveys of 133 top-level business executives in 13 firms, we show that consensus is a function of CIO-led sensegiving in the form of IT promotion, CIO leadership, information systems (IS) engagement with end users, and IS-business communications. The absence of consensus – discord – suggests IS disengagement, a lack of effective CIO leadership, weak IT-business communications, and ineffective promotion of the role of IT. Sensegiving does not mean telling executives what to think about IT but rather how to think about IT and its impacts at various points within the firm. Whether IT impacts are rated high or low, efforts to create increased consensus among executives can greatly enhance value from IT.     

Mobile information systems — executives' view

The concepts of travelling executive and executives' mobile information system are first defined in this paper. The main findings are in the form of collected data and opinions concluded from our personal discussions with 49 executives in the United Kingdom, France, Italy and Finland concerning the nature of the work of executives and the usage of information technology (IT) to support their work today. The near future expectations of the executives are also analysed, especially concerning the mobile use of IT services in order to construct executives' holistic view of mobile computing. The use of IT services was found to be very widespread. Big differences were found: some of the executives had clear positive attitudes for using several mobile IT services but many had not yet realized the potential advantages of these services. Many reasons, e.g. certain cultural differences, were found to explain differences in these four countries.     

The Transformation of Computing: Riding the Wave

Abstract

In an IS world characterized by high stress and low unemployment, IS executives must not only secure scarce talent but also ensure that staffing patterns optimally meet corporate and IT goals. the staffing model presented here offers a new way of looking at IS culture, bringing IS in tandem with the strategic direction of the organization, and fostering ongoing, global assessment of overall IS performance.     

Threat or coping appraisal: determinants of SMB executives’ decision to adopt anti-malware software

This study presents an empirical investigation of factors affecting small- and medium-sized business (SMB) executives’ decision to adopt anti-malware software for their organizations. A research model was developed by adopting and expanding the protection motivation theory from health psychology, which has successfully been used to investigate the effect of threat and coping appraisal on protective actions. A questionnaire-based field survey with 239 U.S. SMB executives was conducted, and the data were analyzed using partial least squares (PLS). This study demonstrates that threat and coping appraisal successfully predict SMB executives’ anti-malware software adoption intention, leading to SMB adoption. In addition, considerable variance in adoption intention and actual SMB adoption is addressed by social influence from key stakeholders and situation-specific variables, such as IT budget and vendor support. Further, the generalizability of the model was tested using industry type and IS expertise. The adoption intention of IS experts and IT intensive industries was mainly affected by threat appraisal and social influence, while that of non-IS experts and non-IT intensive industries was significantly influenced by coping appraisal and IT budget. Vendor support was a key facilitator of the anti-malware adoption for IS experts and IT intensive industry groups, while IT budget was for non-IS expert and non-IT intensive industry groups. Key implications for theory and practice are discussed.     

The moderating role of IT-business alignment in the relationship between IT governance,IT competence,and innovation

Results from a survey of senior executives/officers in charge of IT suggest that while greater IT governance triggers more innovation, IT-business alignment does not moderate this relationship. Executive management IT competence has a direct and positive impact on innovation, and this relationship is stronger when moderated by IT-business alignment. However, regardless of IT-business alignment, innovation is not significantly affected by the board’s IT competence but is positively impacted by IT intensity. This study extends the IS literature on the role of IT in innovation and contributes to the IT governance literature.     

The effects of information systems integration and organizational culture on a firm's effectiveness

Though the relationship between the investment in information systems (IS) and a firm's performance continues to be important; conclusive evidence that information technology (IT) contributes to a firm's effectiveness is rare. This study tests the relationship between the integration of IS during mergers and acquisitions and their effectiveness. The findings point to a positive relationship between IS integration and effectiveness only when controlling for (a) IT intensity, and (b) organizational culture differences between the joining firms. Thus, managers are advised to take into account IT intensity and cultural differences during the pre-merger negotiations and during the post-merger integration process.     

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.     

Information technology,the organizational capability of proactive corporate environmental strategy and firm performance: a resource-based analysis

The study of the relationships between information technology (IT), environmental organizational issues and firm performance is a cutting-edge research topic for the information systems (IS) community. However, at present we know very little about these relationships. Drawing on the perspective of IT-enabled organizational capabilities and the literature on organizations and the natural environment, our study introduces conceptually the construct organizational capability of proactive corporate environmental strategy to the IS field. We propose that IT capability may enable the implementation of a proactive environmental strategy and that this strategy could play a significant role in determining the business value of IT. Using structural equations modeling with data collected from 63 firms, we find that IT capability is an enabler of proactive environmental strategy and that this strategy plays a significant role in mediating the effects of IT on firm performance. Our study provides initial evidence on the role of IT in the implementation of proactive environmental practices. Our results suggest to IT executives that their decisions matter in shaping environmental sustainability, which in turn will generate business value from IT.     

An evaluation of the impact of corporate strategy and the role of information technology on IS functional outsourcing

Information systems (IS) outsourcing, or the turning over of IS functions to an external vendor, is proliferating among business firms. This study represents an early attempt at understanding motivations of IS outsourcing. Outsourcing is discussed as an administrative process innovation, and initiation (or the need to innovate) was examined. Resource based perspectives are discussed in order to motivate the propositions which relate resource gaps to the extent of IS outsourcing. It is suggested that organizational strategy and the role of information technology (IT) would moderate this relationship. Data were gathered through a survey of 188 IS executives to test the propositions with carefully validated measures for the outsourcing of five IS functions. The results indicate that outsourcing is indeed strategic. Organizational strategy and role of IT both had a profound impact on the base relationship between gaps and outsourcing. The discussion then attempts to explain the changes in the base relationship consistent with the exploratory nature of the study.     

Elucidating the role of IT/IS assessment and resource allocation in IT/IS performance in hospitals

Although similar to firms in other industries that strive to increase their operational efficiency by implementing IT/IS, hospitals face difficulties in obtaining the corresponding benefits of investing in IT/IS. This study investigates the relations among IT/IS performance, IT maturity, IT/IS assessment, IT/IS resource allocation, and user satisfaction in hospitals. IT/IS performance in hospitals is evaluated using a designed questionnaire, along with a case study undertaken to discuss IT/IS assessment and the effect of IT/IS on hospital procedures. The analysis results indicate that hospitals have a higher IT maturity, stronger intention to implement IT/IS assessment, and better IT/IS resource allocation capabilities than firms in other industries. Moreover, both IT/IS assessment and user satisfaction affect IT/IS performance in hospitals.     

Reenergizing People after Downsizing

The bottom line demands placed on severely downsized IS organizations require that CIOs and senior IT executives restore the trust and empowerment necessary to excellent internal and external customer service. Guidelines are provided for this reenergizing process, which marks the first step in transforming the IS organization into a flexible learning organization that is responsive to the changing business environment.     

Senior executives' use of information technology

There is a paucity of literature focusing on the ingredients for effective top management, i.e. senior executives, use of Information Technology (IT). In practice, many senior executives argue that they do not see a connection between what IT does and their tasks as executives. Based on the Technology Acceptance Model (TAM), a research model was developed and tested to assess the factors that influence the use of IT by senior executives. A dedicated system supporting the task of a senior executive, an Executive Information System (EIS), was used as the IT tool under review. A large number of external variables were identified and hypothesized, influencing the core elements of TAM. To test the research model using structural equation modeling, cross-sectional data was gathered from eighty-seven senior executives drawn from twenty-one European-based multinationals. The results supported the core TAM and found only a small number of antecedent variables influencing actual use, either directly or indirectly. In addition to identifying the external factors, three of these key variables are under managerial control. They can be used to design organizational or managerial interventions that increase effective utilization of IT.     

Strategy implications of IS planning: Executives’ perceptions on firm performance

This paper aims to explore the effect on business performance of both Information Technology (IT) and business strategy. All data were obtained form 294 IS executives in Greek Small-Medium Enterprises (SMEs) and analyzed using Ordinal Regression Analysis. As the results of this survey indicate, SMEs cannot increase business value without strategic planning. IT executives should be aware of IT issues because this can be an obstacle for the organization and will prevent them achieving their planning goals and increasing the value of the business.     

Organizational impact of system quality,information quality,and service quality

Increased organizational dependence on information systems drives management attention towards improving information systems’ quality. A recent survey shows that “Improve IT quality” is one of the top concerns facing IT executives. As IT quality is a multidimensional measure, it is important to determine what aspects of IT quality are critical to organizations to help Chief Information Officers (CIOs) to devise effective IT quality improvement strategies. In this research, we model the relationship between information systems’ (IS) quality and organizational impact. We hypothesize greater organizational impact in situations in which system quality, information quality and service quality are high. We also hypothesize a positive relationship between system quality and information quality. We test our hypotheses using survey data. Our structural equation model exhibits a good fit with the observed data. Our results show that IS service quality is the most influential variable in this model (followed by information quality and system quality), thus highlighting the importance of IS service quality for organizational performance. This paper contributes theoretically to IS success models through the system quality-to-information quality and IS quality-to-organizational impact links. Implications of our results for practice and research are discussed.     

CEO/CIO mutual understanding,strategic alignment,and the contribution of IS to the organization

Mutual understanding between the CEO and CIO is thought to facilitate the alignment of an organization's IS with its business strategy, and thereby enhance the contribution of the IS to business performance. A survey of 202 pairs of CEOs and CIOs was taken to investigate the relationships between them. Mutual understanding was measured as the role of IS in the organization, using the perspectives of both executives. Strategic alignment was measured as the fit between the CEO's assessment of eight STROBE dimensions and the CIO's assessment of the analogous STROEPIS dimensions; both the CEO and CIO evaluated IS contribution. Mutual understanding of the role of IT led to seven alignment dimensions whereas six alignment dimensions led to IS contributions. Our study extended the theory of IT strategic alignment and provided direction for CEOs and CIOs interested in improving the IS contribution of their organization.     

Uncovering hidden process assets: A case study

The information technology (IT) industry is not making the best possible use of its intangible process assets. The proposed process assets classification is grounded on the experience existing in the intellectual capital field. IT companies can use this classification to better identify and classify their process assets, thereby gaining an overview of the elements on which their processes depend and incrementing their intellectual capital. Two IT companies participated in a case study in which company chief executive and chief operations officers used the proposed classification, which they considered very useful, to identify a set of important process assets not previously taken into account.     

Measuring value dimensions of IT occupational culture: an exploratory analysis

Culture in information systems (IS) research has been an important area of study for over twenty-five years but has focused on two levels of analysis: national and organizational. However, research at the level of IT occupational culture has been minimal. Shared values are the core element of any cultural group and the IS literature has repeatedly called for measurable dimensions of IT culture. This study is an exploratory positivist investigation into scale creation and proposes a set of six value dimensions specific to the context of IT occupational culture based on a review of the relevant IS literature culture as well as interviews with IT professionals. These six dimensions are: Structure of Power, Control, Open Communication, Risk, Reverence for Knowledge, and Enjoyment (abbreviated as SCORRE). A preliminary instrument was prepared and tested with an empirical study. The instrument was found to have both high reliability and construct validity and is ready for further use in ongoing research. There was further evidence that SCORRE represents many core values that form the foundation of IT occupational culture.     

Achieving novelty and efficiency in business model design: Striking a balance between IT exploration and exploitation

Digitalization is encouraging an increasing number of firms to design their business models based on information technology (IT) for exploring business opportunities. This study examines the effect of the balance (imbalance) between IT exploration and exploitation on novelty-centered business model design (NBMD) and efficiency-centered business model design (EBMD). Using matched data from the IT-related executive and chief executive officer of 183 firms, this study finds that IT exploration is positively related to NBMD and EBMD and that IT exploitation is positively related to only EBMD. NBMD and EBMD are significantly related to firm performance. Polynomial regression and response surface analysis reveal that NBMD and EBMD first decline and then rise with the increase in the level of balance between IT exploration and exploitation. NBMD declines but EBMD rises with the increase in the level of imbalance between IT exploration and exploitation. This study contributes to the understanding on leveraging IT capability to influence the business model design and firm performance.     

Rapid business and IT change: drivers for strategic information systems planning?

Today's organizations increasingly plan new information systems (IS) to better compete. Through such planning, they attempt to align their IS strategy and their business strategy. This study tested the impact of business and information technology (IT) change on strategic information systems planning (SISP) horizon, of horizon on the planning itself, and of the planning on the alignment of IS strategy and business strategy. A questionnaire defined business change, IT change, and alignment as multi-item scaled questions, and planning horizon as a single, nonscaled one. It defined a multi-item scaled SISP measure as both a second-order construct and as single-order constructs for its individual phases. A postal survey collected data from 161 IS executives. Constructs were extensively validated. The analysis used structural equation modeling, and surprisingly found that business change predicted longer SISP horizons, but IT change predicted neither longer nor shorter ones. Planning horizon predicted SISP itself (as a second-order construct and as all of its phases), and such planning (as a second-order construct, and as strategic awareness and strategy conception phases) predicted alignment of IS strategy and business strategy. These findings suggest that practitioners more carefully assess their own degree of caution in setting planning horizons in response to business and IT change. In fact, the findings suggest it may not be necessary for practitioners to shorten planning horizons in a rapidly changing environment.