Evaluating cross-organizational impacts of information technology – an empirical analysis

This paper documents information technology (IT) impacts that extend across organizational boundaries based on the economic theory. It evaluates how a firm's production cost is affected by the IT decisions of its business partners, over which it has no direct control. Using cross-sectional data on 100 audit engagements for the 100 largest continuing clients of a leading international public accounting firm's main office, it empirically evaluates the impact of the clients’ IT choices on their supplier's (the public accounting firm's) production costs, professional allocations and product prices. The results indicate, other things being equal, that the higher intensity or complexity a client's IT exhibits, the more effort public accounting professionals need to exert, thus, the higher the production cost incurred by the public accounting firm. In contrast, the better documentation or security a client's IT furnishes, the lower the cost the public accounting firm sustains. Furthermore, such differences in production cost are eventually passed on to the client via differences in product price.     

The synergistic effects of IT-enabled resources on organizational capabilities and firm performance

Computing the value of IT investments and clarifying how the portfolio of IT/IS resources affect a firm's performance and sustainable competitive advantage are critical issues today. We attempted to develop an effective measurement technique and use organizational theory to discover the strategic role of IT-enabled resources in the firm's competitive agenda. Based on a resource-based view of the firm, we proposed a way to evaluate the synergistic effect of such resources on the firm's capabilities, as they, influence the firms’ strategic objectives and improve its financial performance. The technological, human, and organizational resources work together to generate sub-additive cost and super-additive value synergies. Operations, R&D, and marketing capabilities allow firms to implement a business strategy that reflects its customer needs. A survey was conducted to check our framework. Our findings should provide valuable decision guides for practitioners when choosing a portfolio of IT/IS resources for implementing business strategies.     

The impact of the frequency of usage of IT artifacts on predevelopment performance in the NPD process

Responses from 152 managers from a wide range of industries were used to test a conceptual model examining the influence of information technology (IT) and non-IT resources on IT capabilities and their subsequent effects on predevelopment stage outcomes. It was found that the resources of IT infrastructure, IT embeddedness, firm's outward focus, and competitive intensity have varied effects on the frequency of usage of general-purpose and collaborative IT artifacts. Firms with higher levels of usage of collaborative artifacts in their NPD process have improved predevelopment stage performance, including the number of generated concepts and prototypes, and more efficient new product development (NPD) team collaboration.     

Innovation Culture,Collaboration with External Partners and NPD Performance

Researchers and managers have found that the use of external knowledge in the process of new product development (NPD) helps to sustain a firm's competitiveness by strengthening its innovative performance. However, little is known about why some firms use external knowledge sources for NPD in an extensive manner while others hardly ever use them. In addition, there is disagreement about which external partners significantly contribute to the innovative performance of a firm as valuable knowledge sources. Based on the resource‐based view (RBV) of the firm and Kitchell's innovation adoption model, this paper expects a firm's innovation culture to have a significant impact on its openness to external knowledge – measured in terms of its collaborative behaviour with five different external partners – and for that behaviour to influence the firm's NPD performance. A sample of 254 technology‐based firms across several industries is used to empirically test the research model with covariance‐based structural equation modeling (SEM). The findings deepen our understanding of the discrepancies between successful pioneering firms active in technology and knowledge sourcing and others being less successful.     

Complementary IT resources for enabling technological opportunism

This study examines the use of information technologies (ITs), IT human capital, the level of IT vendor support, and their joint effects on firm's sensing and responding to IT changes (technological opportunism). Using data from the U.S. and Spain, the results suggest that IT use and the firm's IT human capital are the main drivers of technological opportunism (TO). The effect of IT vendor support on TO is country dependent, with a U-shaped effect in the U.S. and no effect in Spain. IT vendor support can have positive effects on TO if the firm invests in IT human capital.     

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.     

Global–local negotiations for implementing configurable packages: The power of initial organizational decisions

The purpose of this paper is to draw attention to the critical influence that initial organizational decisions regarding power and knowledge balance between internal members and external consultants have on the global–local negotiation that characterizes configurable packages implementation. To do this, we conducted an intensive research study of a configurable information technology (IT) implementation project in a Canadian firm.     

The presence and development of competency in IT programs

Information technology (IT) programs are coordinated IT projects with a common business objective or underlying similar theme. Driving success in an IT program requires that the projects all work to achieve more global organizational goals than those of each individual project. These goals are better achieved in the presence of critical program team competences that include personnel development, dissemination of methodologies, and a key customer focus. These competences need to be developed to promote higher program performance where programs are dedicated to achieving business objectives of an organization. We propose a model based on the human resource model that considers the development of the critical competences when essential self and social competences are present in team members. Participation mechanisms of interpersonal cooperation and mutual support assist in the development of the critical competences. The model is supported by data collected from both quantitative survey and qualitative interviews with matched pairs of IT program managers and IT project managers. The results confirm the need to insure the presence of certain competences in team members and the construction of an environment that builds mutual support and cooperation. The human resource model is thus extended to include the inter-team environment of IT programs and further variables important to vendor competence.     

The relationship between information technology acceptance and organizational agility in Malaysia

We examined the influence of information technology (IT) acceptance on organizational agility. The study was based on a well-established theoretical model, the Technology Acceptance Model (TAM). We attempted to identify the relationships between IT acceptance and organizational agility in order to see how the acceptance of technology contributes to a firm's ability to be an agile competitor. Structural equation modeling techniques were used to analyze the data. Results from a survey involving 329 managers and executives in manufacturing firms in Malaysia showed that actual system or technology usage had the strongest direct effect on organizational agility. Meanwhile, perceived usefulness and perceived ease of use of IT influenced organizational agility indirectly through actual systems or technology use and attitudes towards using the technology. The results have several implications for IS management.     

Assessing the impact of knowledge management strategies announcements on the market value of firms

Although there is much literature on the relationship between KM strategies and organizational performance, the benefit of KM strategies is not well understood. We addressed this issue by exploring how KM strategies influence a firm's market value using event study methodology. We evaluated the cumulative abnormal returns for KM strategies announced by U. S. firms from 1998 to 2003. Our findings supported the hypothesis that firms’ announcements about their KM strategies provoked positive reactions in the market. More specifically, strategies that focus on either (i) knowledge reusability through IT or (ii) knowledge sharing through informal discussions among employees contributed to higher performance than strategies that emphasized both. This outcome empirically supported our argument that the emphasis on either tacit or explicit knowledge results in a better market value of the firm. Furthermore, the market's reaction to the announcement is dependent on the firm's industry classification. The findings of this study offer insights that may help managers maximize the market impact of their KM strategies.     

Leveraging the IT competence of non-IS workers: social exchange and the good corporate citizen

Organizational IT competence is fundamental to achieving strategic value through technology investments. Importantly, as business users continually gain experience with enterprise systems and a new generation of tech-savvy workers enters the labour force, IT competence is increasingly distributed beyond the IS department. Despite its strategic potential however, IT competence residing within the functional areas of the firm is essentially untapped until it is volunteered by functional area knowledge workers. Addressing the changing landscape of IT competence across the enterprise, the current study examines factors that drive business professionals to volunteer their IT competences to the firm. This research introduces the concept of IT competence volunteering, which is conceptualized as a form of organizational citizenship behaviour that is not explicitly contracted by the firm and may not be directly rewarded. Guided by social exchange theory, a multi-foci model is introduced that positions IT competence as well as workplace exchange relationships as antecedents of IT competence volunteering intention. Overall, the study's results empirically demonstrate the important impacts that user-IS department exchange and perceived organizational support have on the business professional's intention to volunteer his/her IT competence to the firm.     

Proactive or reactive IT leaders? A test of two competing hypotheses of IT innovation and environment alignment

When does it benefit a firm to take a lead in innovation with information technology (IT)? How should a firm align its IT innovation with a dynamic industry? In addressing these questions we present a typology of IT Innovation and Environment Alignment (ITIEA) based on a firm's IT innovation strategic orientation and the industry environment. The traditional ‘fit’ perspective predicts that a firm that matches its IT innovation with a dynamic environment would obtain performance benefits. In contrast, the ‘options’ perspective suggests that a firm that takes advantage of a stable environment to proactively pursue IT innovation and develop IT capability as real options would obtain performance advantage. We employ a quasi-experiment design to test these two competing hypotheses using archival data of IT leaders over a time frame of 6 years. We perform a longitudinal analysis of the performance change trajectories of proactive and reactive IT leaders over time. The results indicate a general support for the ‘options’ perspective that proactive IT leaders that lead in innovation with IT in relatively stable environments are found to consistently outperform reactive IT leaders in overall performance, allocative efficiency, and cost efficiency in management process. However, interestingly, the results also show a partial support for the ‘fit’ perspective that reactive IT leaders that emphasize intensive deployment of IT innovation in dynamic environments are found to obtain a cost advantage in production and operation process over time. The findings offer practical implications for managers to better engage in IT innovations to create and sustain competitive advantage. Synthesizing options thinking and dynamic capability perspective, we provide a framework to better understand IT innovation, dynamic environment, and performance outcomes. The findings also shed useful light on whether, when, and how to innovate with IT for sustained competitive advantage.     

Relation of CIO background,IT infrastructure,and economic performance

The literature of the past three decades has not provided a consistent picture of payback for IT investment. Firm strategies and infrastructure play a part in determining return on investment and, in recent years, chief information officer (CIO) characteristics have been cited as essential factors in ensuring economic returns for IT investment. In our study we related CIO background and attitude toward IT investment to the objective measures of a firm's performance. The financial measures tended to be higher when the CIO was from IT rather than general management, however, an IT manager in a firm that had a strategic orientation to IT rather than a utilitarian one was more likely to have higher financial performance. Thus, although a CIO should have a technological background, the CIO who has a strategic rather than utilitarian orientation is more likely to help in forming a highly profitable company.     

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.     

A contingency model for creating value from RFID supply chain network projects in logistics and manufacturing environments

In the growing literature on RFID and other network technologies, the importance of organizational transformation at the supply chain level has been recognized. However, the literature lacks conceptual model development and salient mechanisms for achieving the level of organizational transformation required for stakeholders to realize the full business benefits from RFID projects. Furthermore, the RFID adoption, use, and impact studies to date largely focus on a single firm setting and on the retail sector. Therefore, this study intends to fill this knowledge gap in the literature, and develops a contingency model for creating value from RFID supply chain projects in logistics and manufacturing environments. For our model development, we draw upon extant diverse literatures, particularly the framework for IT-enabled business transformation, and leadership and organizational learning. The framework postulates a positive relationship between the level of organizational transformation effected by the use of information technology (IT) and the level of business benefits realized from IT. The contingency model draws on the framework, and explicates five contingency factors influencing value creation from RFID supply chain projects: environmental upheaval; leadership; second-order organizational learning; resources commitment; and organizational transformation. Using the contingency model as a conceptual guide, we also perform an analysis of longitudinal real-world case data from a Canadian third-party logistics service firm's seven-layer supply chain RFID projects. The case study analysis provides evidence for the imperative of the contingency factors identified in the model for creating value from the RFID projects. Furthermore, it also reveals the differential costs for the focal firm and the up-stream manufacturing as a key barrier to realizing the full RFID benefits at the supply chain level.     

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.     

Perceived information security of internal users in Indian IT services industry

Information security governance dominates the senior management’s agenda in overall organizational informance technology (IT) governance. The globalization trends encompassing all businesses, and risks of information leakage forces organizations to institute mechanisms to protect it. In order to achieve adequate level of protection, organizations implement information security management systems (ISMS). The effectiveness of ISMS depends on the implementation strength of security controls. Several studies have detailed out the qualitative nature of information security measurements and quantitative studies have always remained a challenge. This empirical study focuses on the information security perceptions of internal users of the organization on the security controls, customer influence and the support provided by the top management. The perception of internal users referred as perceived information security is measured based on the degree of confidence expressed by the internal users towards the security objectives namely, confidentiality, integrity, availability, accountability and reliability. In an attempt to align the interest of researchers and practitioners, the study surveys major developments in the field of ISMS and proposes a construct for a holistic comprehension of ‘Perceived Information Security’. The survey based research methodology focuses on the perceptions of the internal users such as Security program Implementers, Business Users and Senior Management. The findings of the study in the context of Indian IT services industry have been presented. The contributions of the research paper include providing insights into perceived information security of internal users of the organization, an empirical approach for studying perceived information security and a holistic framework for information security in Indian IT organizations.     

IT alignment in small firms

This study focused on the alignment of business strategy and IT strategy among 256 small UK manufacturing firms. An instrument was developed and used to measure IT alignment in small firms. Evidence was gained of high IT alignment in some firms. The study also indicated that IT alignment was related to the firm's level of IT maturity and the level of the CEO's software knowledge, but did not seem to be linked to the CEO's involvement or the firm's sources of external IT expertise.     

SMEs' Preference for Innovation Networks: A Choice Experimental Approach

The objective of this paper is to evaluate the importance of selected characteristics of innovation networks in affecting the decision of food SMEs when joining such networks. The paper develops and tests a series of hypotheses through a choice experiment exercise ran on a sample of 231 firms in six EU countries. The results showed that SMEs prefer networks that are composed of manufacturers and supply chain members, where information is shared confidentially among network partners, and when the network provides support to help the firm build its own networks of partners for innovation. In addition, SMEs' choice of the network is also affected by the interaction between specific network attributes and two firm characteristics, i.e. the firm's collaborative experience and innovation objectives. Based on the results, we conclude that the success of inter‐organizational networks depends on the fit between the network's design and the innovation and networking behaviour of the firms.     

The firm's continuance intentions to use inter-organizational ICTs: The influence of contingency factors and perceptions

We study the influence of contingency factors on the firm's intentions to continue using an inter-organizational ICT. This influence is mediated by perceptions and satisfaction with the ICT. The contingency factors analyzed are the firm's environment and ICT compatibility with the organizational culture. Perceptions are the usefulness, ease of use and security of the ICT. Findings demonstrate that contingency factors directly explain the firm's perceptions and, indirectly, satisfaction and continuance intentions. This study contributes by adapting the predominant behavioral models in the technology arena to the analysis of continuance and explaining why firms perceive inter-organizational ICTs as useful and secure.