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.     

When users are IT experts too: the effects of joint IT competence and partnership on satisfaction with enterprise-level systems implementation

Enterprise-level information systems (IS) are fundamental to businesses. Unfortunately, implementing these large-scale systems is a complex and risky endeavor. As a result, these initiatives must tap the expertise and active involvement of both the IS department and the enterprise's functional areas. Past studies focusing on IS implementation teams consistently identify the IS department as the source of technical expertise and leadership, while functional department team members are typically relegated to the role of business experts. However, unlike the past, many business professionals are knowledgeable about information technology (IT) and are increasingly capable of contributing to IS implementations from a technical perspective as well as a business perspective. This study examines how IT competence held by both the IS department and the user department stakeholders contributes to user satisfaction with the enterprise-level system implementation. Specifically, this research introduces a theoretically grounded construct, joint IT competence, which emerges when the IS department and user department stakeholders integrate their individually held IT competences. The study's results empirically demonstrate that joint IT competence is a key driver of user satisfaction in enterprise-level IS implementations. Although not as significant as joint IT competence, results show that partner-based leadership between the IS department and user stakeholders also influences user satisfaction with IS implementations.     

A new framework for managing IT-enabled business change

Abstract. Although information systems and technology (IS/IT) investments have always caused varying degrees of business change, the main purpose of many of today's IS/IT implementations is to change the business and/or organization in some significant way. However, most organizations' approaches to managing IS/IT developments have changed little in the last 15–20 years and are heavily dependent on methodologies of IS/IT development and associated project management principles. The philosophy being adopted by many organizations today is that there are few IS/IT projects (some infrastructure investments only) that do not cause business changes and therefore they are really 'business projects involving IS/IT'. This exploratory research set out to devise a new framework for 'IT and change' management, which is more appropriate to today's realities than traditional approaches. The initial framework was derived from 'first principles', then adapted and further developed by applying and testing it in a range of real projects in organizations. This paper summarizes the results of that work.     

A study of subsidiaries’ views of information systems strategic planning in multinational organisations

This research examines information systems strategic planning (ISSP) in multinationals from the perspective of the subsidiaries. The research was carried out through interviews with the IT and business managers in subsidiaries of nine large American, European, and Japanese multinationals. The evidence from this study reveals that, in the majority of these organisations, IS planning is either centralised or moving towards centralisation. The main focus of IS planning, in many of these organisations, is to control cost and achieve scale economies. As centralisation increases IT tends to control the planning process and, as a result, IS planning becomes more tactical than strategic and is dominated by IT infrastructure planning. Project implementation was the main criterion used to measure IS planning success. However, due to the dominant role of IT, the subsidiary business managers are often less satisfied with the IS planning approach compared with the subsidiary IT managers. The level of involvement of business managers and their satisfaction with ISSP was related to the degree of decentralisation of responsibility for IS planning.     

Opportunistic strategy formulation for IS/IT planning

Existing models and frameworks for information systems and information technology (IS/IT) planning are not robust enough to explain or predict strategic gains and many organizations are wary of investing further in their information infrastructure. Because technology is not the only ingredient of success, a complete and rigorous reconsideration of the techniques, options and approaches to IS/IT planning linked to business strategy is needed. It is argued that this can only be achieved through consideration of the recent organizational processes involved for creating a successful IS/IT strategy. This paper reviews aspects of both the literature on business strategy and IS/IT planning and considers case examples from two organizations in which the contrasting outcomes from the same technical innovation illustrate the dynamics of opportunistic strategy formulation.     

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.     

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.     

IT means business

Recognition is growing rapidly in industry that IT is a strategicresource that can be levied to improve business performanceacross all areas. Consequently demand for formal qualificationsin IT and IS management is increasingly important for any dynamicUK business.     

The impact of information technology on the financial performance of diversified firms

Diversification may increase economic benefits through more efficient utilization of business resources across multiple markets. However, the benefits of these scope economies are often not realized due to costs of coordinating resources in multiple markets. Information technology (IT) is widely used to achieve more efficient coordination by reducing the costs of coordinating business resources across multiple markets. Because of the need for coordination of business resources across multiple markets, diversification can increase the demand for IT. But does increased use of IT improve the performance of diversified firms? This research tackles this question by undertaking an empirical study of the impact of IT on the financial performance resulting from diversification by focusing on the strategic direction chosen by different firms. The empirical aspects of this subject have received little attention from previous information systems (IS) and economics research. This research also sheds light on the business value of IT by showing the importance of complementarity between IT and strategy in firm performance, a subject which has also received limited attention in prior IS research.     

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.     

Information management in the global enterprise: an organising framework

Much has been written over the last decade on managing global enterprises. While the predominant concern of this literature has been strategic in orientation, the management of information is a neglected area. By drawing on a diverse range of literature in the international business, strategic management, organization design, and information system (IS) disciplines this paper develops a conceptual framework for analysing information management in the global enterprise, providing a basis for organising existing literature on the topic and for creating a map of the field. This framework is structured around four domains: global business drivers, global business strategy, global business model and global information strategy. It highlights the role of information technology (IT) as supporting global business strategies while at the same time IT can also be a major catalyst in the globalisation process itself. In the context of the global information strategy, the paper develops a distinction between business infostructure, IT infrastructure and the IS/IT suprastructure. Significant relationships between the four domains of the framework are surfaced and an agenda for action developed.     

Literature review: Understanding information systems strategy in the digital age

IT/IS strategy is of central importance to practice and many well-developed lines of research have contributed to our understanding of IT/IS strategy. However, throughout the last decade, digitalization has fundamentally transformed the business world and put into question traditional strategy wisdom. As information technologies are the driver of this digital transformation, we can expect an even more fundamental change in IT/IS strategy thinking. To verify this expectation, we undertook an in-depth, extensive review of the academic literature on this topic. Our review, which is time-framed to the years 2008–2018, distils five different directions in the development of IT/IS strategy research. It also identifies a shift in how IT/IS strategy is defined and investigated over this period. Moreover, we present an emerging debate on how digitalization challenges traditional IT/IS strategy wisdom. As this debate is still in its infancy, we take it further by entering into the larger discussion on digitalization, including digital innovation, digital ecosystems, and digital transformation. Building on this, we derive at deeper insights on how IT/IS strategy could, should, or should better not be understood in the digital age.     

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.     

Developing a Theory to Explain the Insights Gained Concerning Information Systems and Business Process Behaviour: The ASSESS-IT Project

Business Process (BP) literature promotes the value of business processes as essential gearwheels that help organisations to reach their goals. Similarly, many process design approaches claim that information technology is a major enabler of business process, a view also shared by the Information Systems (IS) community. Despite this, BP and IS approaches do not provide clear guidance on how to coordinate the design of BP and IS. Nor is any indication of which modelling techniques could be used to detect and design IT opportunities within a business process context given.The ASSESS-IT project examined this domain and proposed the use of simulation techniques to achieve BP and IT integration. The outcome of this project gave indication that depicting the dynamic behaviour of IS could be very helpful for BP modellers to predict the impact that the insertion of IS may have on organisational processes. This paper proposes a simulation framework to depict IS behaviour within a BP simulation model, namely BPS/ISS, and tests it using the case study that was part of the ASSESS-IT project.     

Proactive management of distributed organisational computing: Prevention always pays, doesn't it?

Organisations have eagerly adopted the new opportunities provided by distributed computing technology. These opportunities have also created new dependency on the technology and threats of technical problems. Information technology (IT) management has to choose its position towards these new technical risks. Should the problems be prevented proactively in advance or settled reactively afterwards? This paper draws conclusions from an action research case study aimed at proactive versus reactive end-user support. Between 1994 and 1997 one of the business units in Nokia Telecommunications required a new approach for its distributed information systems (IS) to facilitate rapid organisational growth. The distributed IS and its end-user support were established and organised during a 30-month re-engineering process. These results provide a new view to the dependencies between business processes and IT. The new distributed IT has become, often insidiously, a necessity for vital business processes. Therefore, risk management should be adopted as a standard tool for IS management to identify such dependencies. Proactive actions should be aimed at those areas where IT-related business risks are identified. Proactivity should be supplemented by reactive support to provide daily assistance for the end-users.     

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 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.     

How information-sharing values influence the use of information systems: An investigation in the business intelligence systems context

Although the constituents of information systems (IS) success and their relationships have been well documented in the business value of information technology (IT) and strategic IS literature, our understanding of how information-sharing values affect the relationships among IS success dimensions is limited. In response, we conduct a quantitative study of 146 medium and large firms that have implemented a business intelligence system in their operations. Our results highlight that in the business intelligence systems context information-sharing values are not directly linked to IT-enabled information use, yet they act as significant moderators of information systems success dimensions relationships.     

An analysis of IT/IS outsourcing provider selection for small- and medium-sized enterprises in Taiwan

Outsourcing is important in highly diversified business environments, but while there have been many studies on outsourcing, none have explicitly tackled the problem of how SMEs should assess and select their outsourcer. Numerous benefits might be gained if SMEs could utilize evaluation models to help select their IT/IS outsourcer effectively. Prejudices arising from selection through impartial analysis could be avoided and a more accurate and an objective decision could be made. We investigated the selection process of an enterprise needing an IT/IS outsourcing provider in Taiwan. Our recommended process quantitatively sorts the criteria using the AHP. An evaluation model was developed based on the needs of the SME who should use it to obtain a better outsourcing provider resulting from improved information vital to maintain outsourcing efficiency. Use of our model should reduce costs and potential risks in adopting new IT/IS applications and promote an objective standard with which to evaluate IT/IS outsourcing providers.     

Information technology capability and firm performance: Role of industry

Despite several calls for considering industry in the IS value research, few studies investigated the relationship between benefits of IT and industries. This study extends Chae et al. (2014) by investigating how industry influences the relationship between IT capability and business performance. Unexpectedly, it finds that the control group in the industries in which the "transform" IT strategic role dominates showed superior performance than the IT leader. Also, the IT leaders in the "automate" IT strategic industry did not exhibit better business performance than the control firms. We discuss the implications of these findings.