The Effect of Organizational Factors on the Business Value of IT: Universalistic,Contingency, and Configurational Predictions

The authors seek to expand the scope of theoretical approaches and organizational factors that are used in concert to examine the effect of organizational factors on IT business value in the present study. They explore the relationships among IT infrastructure capability, a set of five organizational factors, and IT business value using three dominant approaches in organizational research: the universalistic, contingency, and configurational approaches. The ensuing predictions are empirically tested through interviews with senior executives in 57 organizations.     

Analyzing the impact of a firm's capability on outsourcing success: A process perspective

We investigated the effect of a firm's resource capabilities and interaction processes on the success of IT outsourcing. Grounded in available literature on outsourcing relationship and process theory as well as a resource-based view of the IT resource capability, a conceptual model was composed to examine the causal structure of capability, process, and relationship in IT outsourcing. We identified the firm's resource capability factors and, based on the premise that relationship intensity should be affected by the IT outsourcing process, we developed a first-order factor analysis of resource capabilities in the interactions between the outsourcer and provider. Results of empirical testing using responses from 267 IT outsourcing project teams in Korea supported most of our hypotheses. The integration of corporate IT resource and capability theories with social exchange theory distinguishes our research from that of others, who have generally treated these theories separately.     

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.     

Resolving paradoxes in IT success through IT ambidexterity: The moderating role of uncertain environments

As information technology (IT) success is both essential and elusive, researchers and practitioners are faced with an ongoing challenge to determine what IT capabilities should be developed to ensure IT success. Drawing on the paradox and ambidexterity theory, we highlight paradoxes in IT success and propose that firms manage these paradoxes by developing an IT ambidexterity capability. We hypothesize that IT ambidexterity capability enhances IT success, and that uncertain environments strengthen this relationship. Our hypotheses find support in a sample of 292 British high-tech firms. This research contributes to conceptualize paradoxes in IT success and advances the theory for a more comprehensive understanding of the impacts of IT ambidexterity capability.     

A Model to Create Organizational Value with Big Data Analytics

Value creation is a major factor not only in the sustainability of organizations but also in the maximization of profit, customer retention, business goals fulfillment, and revenue. When the value is intended to be created from Big Data scenarios, value creation entails being understood over a broader range of complexity. A question that arises here is how organizations can use this massive quantity of data and create business value? The present study seeks to provide a model for creating organizational value using Big Data Analytics (BDA). To this end, after reviewing the related literature and interviewing experts, the BDA-based organizational value creation model is developed. Accordingly, five hypotheses are formulated, and a questionnaire is prepared. Then, the respective questionnaire is given to the research statistical population (i.e., IT managers and experts, particularly those specializing in data analysis) to test the research hypotheses. In next phase, connections between model variables are scrutinized using the structural equation modeling (measurement and structural models). The results of the study indicate that investigating the infrastructures of the Big Data Analytics, as well as the capabilities of the organization and those of Big Data Analytics is the initial requirement to create organizational value using BDA. Thereby, the Big Data Analytics strategy is formulated, and ultimately, the organizational value is created as well.     

IT governance for enterprise resource planning supported by the DeLone–McLean model of information systems success

I investigated the role of IT governance in driving the success of ERP projects. The tool for assessing ERP value was a comprehensive, multivariate and validated model adapted from the widely used Delone and McLean model of IS success. This showed that ERP investments were more effective in organizations having an IT governance domain consisting of proactive strategic guidance and participatory team building. Large enterprises, however, under-performed compared to SMEs and needed specific performance drivers, such as top management commitment to become effective.     

An Empirical Analysis of the Relationship Between IT Training Sources and IT Value

Information technology (IT) training has been identified as a key factor for the success of IT applications and the most frequently applied coping mechanism to handle changing IT. However, there is a question as to how IT training has to be conducted to obtain desired outcomes (higher levels of IT value). This paper analyses the presence of IT training sources used by firms and examines the influence on IT business value. Here, IT training is studied according to three IT training sources: in-house IT training, outside IT training, and self IT training by employees. In addition, differences in IT training sources are analysed according to two contingency factors: business size and business industry. Results show a positive relationship between IT training sources (outside and self IT training) and IT business value and confirm that IT training sources are positively related to business size and differ moderately by business industry.     

Can intrafirm IT skills benefit interfirm integration and performance?

This study develops a model to examine whether intrafirm, hard and soft IT skills have cross-boundary effects on interfirm collaboration and integration, thus leading to better supply-chain performance. A model with eight hypotheses was developed and tested using data collected from 250 Taiwanese manufacturing firms. Seven hypotheses find empirical support. The results show that intrafirm IT skills indeed can benefit interfirm collaboration and integration and thus, supply-chain performance. Our findings suggest that the value of skilled IT professionals for interfirm integration, supply-chain performance and collaborative relationships between firms is critical for realizing that value.     

IT outsourcing success: A dynamic capability-based model

This study proposes and tests a model of information technology outsourcing (ITO) capabilities as antecedents of ITO success. Building on the dynamic capabilities perspective (DCP), the model posits that ITO sensing, ITO seizing, and ITO orchestrating capabilities will influence ITO success by way of both successful reconfiguration of IT solutions and successful delivery of IT services. Building on extant ITO research, the model also hypothesizes that contract management capabilities and relationship management capabilities will influence ITO success via the successful delivery of IT services. Data from a cross-sectional survey of 152 large U.S.-based organizations in various industries were analyzed with PLS. The results support the hypothesis that successful reconfiguration mediates the effect of dynamic capabilities on ITO success. They partially support the hypothesis of successful delivery as mediator of the effect of dynamic capabilities on ITO success. The hypothesis of successful delivery as a mediator of the effect of relationship management capabilities and contract management capabilities on ITO success is supported only for relationship management capabilities. The study offers a theoretical anchoring for the conceptualization of ITO capabilities, which complements the rich and context-specific case-based literature of ITO capabilities and extends current research by adding to existing explanations of how ITO success is achieved.     

The IT Value Hierarchy: Using Maslow's Hierarchy of Needs as a Metaphor for Gauging the Maturity Level of Information Technology Use within Competitive Organizations

The purpose of this paper is to present a hierarchy of progressive IT maturity using Maslow's Hierarchy of Needs as a metaphor for articulating the increasing value that can be derived by the application of Information Technology within competitive organizations. The authors refer to this maturity model as the IT Value Hierarchy. Each level of the IT Value Hierarchy is described using examples and comparisons to Maslow's Hierarchy. The model can be used by IT executives as a framework for better explaining and discussing the value of increasingly sophisticated Information Technology use within the enterprise.     

企业并购后信息整合策略之个案研究

企业并购是企业强化竞争优势的工具，信息整合则是并购后整合成功的关键因素。诸多学者认为并购后的信息整合策略应校准于并购策略，本研究则认为信息整合策略应考虑：（1）信息部门的协同合作；（2）各部门在整合策略上的相互配合，将以实务观点探讨企业并购后的信息整合策略。 本研究基于企业工程（Enterprise Engineering）以及校准观点发展一信息整合策略分析架构，藉由个案研究探讨并购后：（1）并购双方规划信息整合策略时的关键因素；（2）信息整合策略规划与执行的成功因素；（3）信息系统与营运流程整合的标准化。研究结果显示，信息整合策略的规划应参考其它部门的整合策略，而各部门关键人员参与，以及信息流程与商业流程标准化皆有助信息整合策略的执行。     

Ensuring business continuity

Last year's terrorist attacks in the US have forced many organizations to critically reevaluate the adequacy of their existing business continuity plans and disaster recovery arrangements. The tragedy highlighted how important it is for organizations to remain commercially operational under even the most exceptional circumstances. E-business, which relies heavily on IT, is particularly vulnerable, because IT failures directly limit the capability to generate revenue. The thoroughgoing approach to business continuity planning (BCP) that I present-called the BCP cycle-can help you avoid those pitfalls. The BCP cycle is generic enough to have practical value in a wide range of IT-related organizations, and it is process-oriented, ensuring well-guided BCP efforts and tangible results     

How Can Organization Retain IT Personnel? Impact of IT Manager’s Leadership on IT Personnel’s Intention to Stay

Today’s IT personnel must possess business and technology competencies to be effective. As such competent IT personnel are in great demand, it becomes a concern for organizations to develop, manage, and retain them in the long run. This study provides a model of IT managers’ leadership as a critical factor in such dynamics. Empirical analysis with a survey of 217 IT professionals showed that an IT manager’s transformational leadership is positively associated with IT personnel’s intention to stay.     

The IT Value Hierarchy: Using Maslow's Hierarchy of Needs as a Metaphor for Gauging the Maturity Level of Information Technology Use within Competitive Organizations

Abstract

The purpose of this paper is to present a hierarchy of progressive IT maturity using Maslow's Hierarchy of Needs as a metaphor for articulating the increasing value that can be derived by the application of Information Technology within competitive organizations. The authors refer to this maturity model as the IT Value Hierarchy. Each level of the IT Value Hierarchy is described using examples and comparisons to Maslow's Hierarchy. The model can be used by IT executives as a framework for better explaining and discussing the value of increasingly sophisticated Information Technology use within the enterprise.     

Social Comparison,Goal Contagion,and Adoption of Innovative Information Technology

When adopting a new, innovative information technology (IT), most institutions tend to lack knowledge about it initially. However, they often adopt new ITs despite their illiteracy. This behavior is difficult to explain using rational IT adoption theories. Focusing on the organizational decision-making process behind adoption of innovative IT, we examine the strategy by which some companies compensate for their lack of knowledge: collection of information from other companies that have successfully adopted IT previously. We develop a new IT adoption model for which goal contagion theory and social comparison theory are combined to interpret the circumstances under which organizations tend to adopt new, innovative IT despite limited knowledge about it. Big data, cloud services, and smart mobile systems are considered as examples of innovative IT in the empirical study.     

Business analytics maturity of firms: an examination of the relationships between managerial perception of IT,business analytics maturity and success

This study develops a measure for business analytics (BA) maturity and empirically examines the relationships between managerial perception of IT, BA maturity and BA success. The findings suggest that (1) BA maturity can be measured via BA integration & management support, process-level benefits of BA and technology & data analytics capabilities, (2) BA maturity positively affects organizations’ overall BA success, and (3) managerial perception of IT positively influence organizations’ achievement of BA maturity.     

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。     

Imaginal and emotional experiences in pleasure-oriented IT usage: A hedonic consumption perspective

Based on the marketing theory of hedonic consumption, this study examines the effects of six types of imaginal and emotional experiences on using pleasure-oriented IT. Associated hypotheses are tested using questionnaire responses from 443 online game players. The results provide strong support for the major hypotheses and indicate that the determinants of behavior may differ in using pleasure-oriented versus productivity-oriented IT. This paper contributes not only to the application of a marketing theory to IS research, but also to improved understanding of using pleasure-oriented IT and of why people use technologies that are not particularly useful from a productivity standpoint.     

Quantifying forecast quality of IT business value

This article discusses how to quantify the forecasting quality of IT business value. We address a common economic indicator often used to determine the business value of project proposals, the Net Present Value (NPV). To quantify the forecasting quality of IT business value, we develop a generalized method that is able to account for asymptotic cases and negative valued entities. We assess the generalization with real-world data of four organizations together consisting of 1435 IT assets with a total investment cost of 1232+ million Euro for which 6328 forecasts were made. Using the generalized method, we determine the forecasting quality of the NPV, along with the benefits and cost using real-world data of another 102 IT assets with a total business value of 1812 million Euro. For the real-world case study, we will find that the quality of the forecasted NPVs is lower than the forecasted benefits, which is again lower than the forecasting quality of the cost. Also, we perform a sensitivity analysis to investigate the impact on the quality of an asset’s forecasted NPV when the forecasting quality of benefits or cost improves. Counterintuitively, it turned out in this case study that if the quality of cost forecasts would improve, the overall quality of its NPV predictions would degrade. This underlines the importance of both accurate cost and benefit predictions. Finally, we show how to use the quantified forecast information to enhance decision information using two simulation examples.     

Relationship-specific investment,value creation,and value appropriation in cooperative innovation

The rapid development of information technology (IT) makes it possible for different organizations to ally with each other for cooperative innovation. In this paper, two critical issues involved in enterprise cooperation are addressed: (1) how organization value is added via cooperative business and how the profit from the cooperation is appropriated among the cooperators; and (2) how the cooperative innovation can be implemented effectively. The resource-based view is combined with the transaction cost theory, the equity theory, and the risk-return theory to analyze the influence of the relationship-specific investment (RSI) on the value creation and appropriation in cooperation. Based on our theoretical analysis, a number of hypotheses are made to measure the influence and these hypotheses are tested using empirical data collected from 187 high-tech enterprises in the Northeast region of China. The verification has shown that RSI allows information sharing among collaborators for effective coordination and thus improves the performance of cooperative innovation. RSI positively affects the value appropriation based on investors’ contributions and the risk level involved in the cooperation. RSI increases the value appropriation through the performance promotion effect in cooperation. Minor adverse impact is identified on investor’s dependence. In addition, value creation positively affects value appropriation. The drawn conclusion is significant for developing cooperative innovations under the circumstance in which IT is widely applied to enterprises’ business environment.