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.     

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.     

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.     

Aligning the IT portfolio with business strategy: Evidence for complementarity of corporate and business unit alignment

Research on alignment between business strategy and information technology (IT) strategy has generated extensive insights over the last three decades. That research has focused primarily on the fit between business and IT strategies, while cross-domain alignment, i.e., alignment between business strategy and IT infrastructure components, has received far less attention. Further, previous studies have focused on the implications of alignment for firm performance while the effects of cross-domain alignment on business unit performance in multi-business organizations (MBOs) are yet to be examined. This issue is important as IT infrastructures are evolving rapidly. Specifically, MBOs are increasingly turning to corporate IT platforms to support a common set of shared IT needs, while still allowing individual business units to manage unique aspects of their own IT needs through local IT applications. Extending prior research, this study proposes that performance of business units in MBOs is influenced by two complementary forms of cross-domain alignment, viz., alignment between the corporate IT platform and the corporate business strategy, and alignment between the business unit’s portfolio of IT applications and its business strategy. Using data from a global survey of 120 organizations, we find evidence that complementarity between these two forms of cross-domain alignment creates a joint positive effect on business unit performance. We also find that this effect varies with the extent of process digitization within business units. Implications for theory and practice 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.     

Exploring IT Dependence and IT Governance

The purpose of this study is to identify the IT governance mechanisms that are used at different levels of IT dependence (defensive or offensive IT modes) and to compare the degree of their use between these IT modes. The results of a survey suggest that the degree of use of IT governance mechanisms varies by IT mode, and it is greater when a firm is in offensive versus defensive IT mode.     

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.     

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.     

The contingent effect of personal IT innovativeness and IT self-efficacy on innovative use of complex IT

While organisational investment in complex information technologies (IT) keeps growing, these technologies are often applied at a superficial level and fail to attain the promised benefits. To further extract the value potential of complex IT, this study investigates employee users' innovate with IT (IwIT), which is a post-acceptance behaviour that refers to individual users applying IT in novel ways to support their task performance. Drawing on the information system continuance (ISC) model, we propose a research framework with perceived usefulness (PU) and satisfaction (SAT) as the antecedents of IwIT. We further emphasise the contingent role of personal characteristics and include personal innovativeness with IT (PIIT) and IT self-efficacy (ITSE) as the moderators of the framework. We validate the model with data from users of two complex ITs: enterprise resource planning and business intelligence technologies. The results suggest that positioning personal factors as moderators significantly increases the explanatory power of the ISC model and offers a more comprehensive understanding about IwIT. Specifically, ITSE positively moderates the effect of PU and negatively moderates the effect of SAT on IwIT. The moderating role of PIIT, however, is subject to the specific type of IT of investigation.     

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.     

关于中小机场信息化建设的思考

在信息化建设和应用过程中,缺乏信息化发展战略,从而产生了一些问题:成本增加、重复建设、信息孤岛、信息化建设与经营发展战略脱节,信息资源利用效率低。因此,中小机场信息化建设必须由战术行为提升为战略行为,由局部推进转变为整体推进,由技术驱动改变为业务驱动。要搞好战略规划并重视对数据的建设与开发。主要实施步骤是:完善信息基础设施建设、推广应用办公系统、实施业务信息化、推进管理和业务的综合集成。     

The impact of IT on decision structure and firm performance: evidence from the textile and apparel industry

Clarifying the relationships between information technology (IT), organizational performance, and decision structure remains an important area of inquiry in IS research. Through an empirical analysis and complementary case examples, our study examines these associations among firms operating in the US-based apparel and textile industry from 1992 to 1997. Based on data gathered from 50 public firms located across the USA, the study finds that IT used to enhance internal communication supports a decentralized decision structure, which in turn is associated with higher financial performance. Hence, IT exhibits an indirect performance effect. However, use of IT to enhance communication is also found to have a direct performance effect in large organizations. This paper proposes that use of communication enhancing IT can support organizational learning processes by facilitating flexible exchange of skills and knowledge across functional areas. Case examples are used to illustrate how these learning effects can materialize.     

IT系统管理中多应用综合性能优化的建模研究

概要分析了影响应用程序服务水平的两个方面因素;重点综述了基于非线性目标规划算法的,通过调整系统服务资源分配来进行性能优化建模方法,并给出算例验证其算法可行性;最后讨论了该模型目前仍存在的问题、改进的思路和将来的发展趋势。     

IT outsourcing and firm-level performance: A transaction cost perspective

We analyzed the effect of the level of low asset specificity IT outsourcing on firm-level financial performance. We used transaction cost economics (TCE) as the theoretical basis to explain the effect of the level of network and telecommunication services outsourced on financial performance. An analysis of 1444 Integrated Healthcare Delivery Systems revealed that higher levels of network and telecommunication services outsourced were associated with superior financial performance. Specifically, each additional network and telecommunication service outsourced resulted in an average $3,120,000 in savings, a 25% increase in profit. In addition, increases in IT budgetary expenditures were found to be associated with increased financial performance. Our study provided preliminary support for the use of asset specificity to guide outsourcing decisions. In particular, IT activities that have become commodities (having ‘low specificity’) should be outsourced to improve the firm's financial performance.     

Strategic context and patterns of IT infrastructure capability

The importance of a firm's information technology (IT) infrastructure capability is increasingly recognised as critical to firm competitiveness. Infrastructure is particularly important for firms in industries going through dynamic change, for firms reengineering their business processes and for those with multiple business units or extensive international or geographically dispersed operations. However, the notion of IT infrastructure is still evolving and there has been little empirically based research on the patterns of IT infrastructure capability across firms.We develop the concept of IT infrastructure capability through identification of IT infrastructure services and measurement of reach and range in large, multi-business unit firms. Using empirical case research, we examine the patterns of IT infrastructure capability in 26 firms with diverse strategic contexts, including different industry bases, level of marketplace volatility, extent of business unit synergies and the nature of firm strategy formation processes. Data collection was based on a combination of quantitative and qualitative methods with multiple participants.More extensive IT infrastructure capability is defined as a combination of more IT infrastructure services and more reach and range. More extensive IT infrastructure capability was found in firms where: (i) products changed quickly; (ii) attempts were made to identify and capture synergies across business units; (iii) there was greater integration of information and IT needs as part of planning processes; and (iv) there was greater emphasis on tracking the implementation of long term strategy. These findings have implications for both business and technology managers particularly in regard to how firms link strategy and IT infrastructure formation processes.     

基于平衡计分卡的IT治理模型研究

企业在实施IT治理过程中,对于项目的评价、开发、实施以及维护,需要一种多指标的方法来进行目标分解。平衡记分卡可以帮助企业来分解目标,同时根据对于目标的绩效考察来驱动战略。首先介绍IT治理的概念、模型以及IT平衡记分卡的四个维度,接着提出了一个Cobit与IT平衡计分卡相结合的瀑布模型,解决了IT治理中的绩效评价问题,使得IT治理过程更加完善和成熟。     

IT基础设施与信息系统战略对应模型

IT基础设施是IT组合的基础,其在组织范围内为IT应用和核心业务提供可靠的共享服务。IT基础设施能力关系到企业战略及BPR的成功与否。IT基础设施与信息系统战略之间的对应是战略对应的一项基本问题。该文建立了基础设施与信息系统战略之间的对应模型,并根据该模型采用多目标规划方法和AHP方法解决信息系统规划中的基础设施规划问题,建立了IT基础设施的多目标决策模型。     

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 importance of the CobiT framework IT processes for effective internal control over financial reporting in organizations: An international survey

This paper presents the results of an international survey of IT professionals exploring the relationships between CobiT's IT processes and financial reporting. Our respondents rated the importance of each of CobiT's 34 processes from the viewpoint of effective internal control over financial reporting. Results revealed five processes that were deemed specially critical. We also find interesting patterns of results as a function of respondents’ employment type and geographic location. This survey of IT professionals shed light on the relevance of a widely used IT governance framework—CobiT—from the perspective of organizations’ internal controls.     

Exploring the effects of direct experience on IT use: An organizational field study

Empirical studies have investigated the effect of attitude and behavior on IT acceptance in organizations but yielded ambiguous results. Possibly they have not effectively accounted for the moderating effects of experience gained through direct interaction with the target technology. We examined the moderating effect of the length of direct experience on IT acceptance relationships and constructs. Using multi-group invariance analysis, we demonstrated that relationships between key IT acceptance constructs differed, depending on the user's experience. The incorporation of direct experience can lead to convergent results and contribute to further understanding of the process. We discuss some implications from the knowledge that IT use is a dynamic process and suggest that IT management must account for direct experience in their decision making.