Exploring the important role of organizational factors in IT buisness value: taking a contingency perspective on the resource-based view

Frank wiengarten, Paul Humphreys, Guangming Cao, Marie McHugh

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46 Citations (Scopus)

Abstract

Despite the importance to researchers and practitioners of how information technology (IT) contributes to organizational performance, there is an ongoing debate about the extent of IT business value (ITBV) and how to measure ITBV. Recently, a number of researchers have applied resource-based view (RBV) and contingency theory to investigating ITBV, with mixed results. Researchers have started to recognize that ITBV is closely associated with the synergies created from IT and a variety of complementary organizational factors, which might be an alternative way to explain these mixed results. Through a review of the literature, this paper assesses the current level of knowledge in ITBV research. It identifies that significant progress has been made in the research domain, but that in-depth inquiry into ITBV is still needed. Based on RBV and contingency theory, a research framework has been developed. The framework suggests that firms might be able to gain significant performance improvements if IT resources are in alignment with additional organizational factors (i.e. organizational strategy, organizational process, organizational culture, organizational structure). The authors believe that this framework will be valuable in assisting researchers and practitioners in understanding the complex ITBV process.
LanguageEnglish
Pages30-46
JournalInternational Journal of Management Reviews
Volume15
Issue number1
DOIs
Publication statusPublished - Jan 2013

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Information technology
Industry
Resource-based view
Organizational factors
Contingency perspective
IT business value
Contingency theory

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@article{b444c6361435435c8ef673690cc3b3b3,
title = "Exploring the important role of organizational factors in IT buisness value: taking a contingency perspective on the resource-based view",
abstract = "Despite the importance to researchers and practitioners of how information technology (IT) contributes to organizational performance, there is an ongoing debate about the extent of IT business value (ITBV) and how to measure ITBV. Recently, a number of researchers have applied resource-based view (RBV) and contingency theory to investigating ITBV, with mixed results. Researchers have started to recognize that ITBV is closely associated with the synergies created from IT and a variety of complementary organizational factors, which might be an alternative way to explain these mixed results. Through a review of the literature, this paper assesses the current level of knowledge in ITBV research. It identifies that significant progress has been made in the research domain, but that in-depth inquiry into ITBV is still needed. Based on RBV and contingency theory, a research framework has been developed. The framework suggests that firms might be able to gain significant performance improvements if IT resources are in alignment with additional organizational factors (i.e. organizational strategy, organizational process, organizational culture, organizational structure). The authors believe that this framework will be valuable in assisting researchers and practitioners in understanding the complex ITBV process.",
author = "Frank wiengarten and Paul Humphreys and Guangming Cao and Marie McHugh",
note = "Reference text: Agarwal, R. and Lucas, H.C. Jr (2005). The information systems identity crisis: focusing on high-visibility and high-impact research. MIS Quarterly, 20, pp. 381–398. Albadvi, A., Keramati, A. and Razmi, J. (2007). Assessing the impact of information technology on firm performance considering the role of intervening variables: organizational infrastructures and business processes reengineering. International Journal of Production Research, 45, pp. 2697–2734. CrossRef,Web of Science{\circledR} Times Cited: 10Ambrosini, V. and Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic management? International Journal of Management Reviews, 11, pp. 29–49. Direct Link:AbstractFull Article (HTML)PDF(251K)ReferencesWeb of Science{\circledR} Times Cited: 46 Andersen, T. and Segars, A. (2001). The impact of IT on decision structure and firm performance: evidence from the textile and apparel industry. 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N1 - Reference text: Agarwal, R. and Lucas, H.C. Jr (2005). The information systems identity crisis: focusing on high-visibility and high-impact research. MIS Quarterly, 20, pp. 381–398. Albadvi, A., Keramati, A. and Razmi, J. (2007). Assessing the impact of information technology on firm performance considering the role of intervening variables: organizational infrastructures and business processes reengineering. International Journal of Production Research, 45, pp. 2697–2734. CrossRef,Web of Science® Times Cited: 10Ambrosini, V. and Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic management? International Journal of Management Reviews, 11, pp. 29–49. Direct Link:AbstractFull Article (HTML)PDF(251K)ReferencesWeb of Science® Times Cited: 46 Andersen, T. and Segars, A. (2001). The impact of IT on decision structure and firm performance: evidence from the textile and apparel industry. Information & Management, 39, pp. 85–100. CrossRef,Web of Science® Times Cited: 23Aral, S. and Weill, P. (2007). IT assets, organizational capabilities, and firm performance: how resource allocations and organizational differences explain performance variation. Organization Science, 18, pp. 763–780. CrossRef,Web of Science® Times Cited: 38Armstrong, C. and Sambamurthy, V. (1999). Information technology assimilation in firms: the influence of senior leadership and IT infrastructures. Information Systems Research, 10, pp. 304–327. CrossRef,Web of Science® Times Cited: 180Bardhan, I., Whitaker, J. and Mithas, S. (2006). Information technology, production process outsourcing, and manufacturing plant performance. Journal of Management Information Systems, 23, pp. 13–40. CrossRef,Web of Science® Times Cited: 17Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, pp. 99–120. CrossRef,Web of Science® Times Cited: 6318Barua, A., Konana, P., Whinston, A. and Yin, F. (2004). An empirical investigation of net-enabled business value. MIS Quarterly, 28, pp. 585–620. Barua, A., Kriebel, C.H. and Mukhopadhyay, T. (1995). Information technologies and business value: an analytic and empirical investigation. Information Systems Research, 6, pp. 3–23. CrossRef,Web of Science® Times Cited: 268Bergeron, F., Raymond, L. and Rivard, S. (2001). Fit in strategic information technology management research: an empirical comparison of perspectives. Omega, 29, pp. 125–142. CrossRef,Web of Science® Times Cited: 46Bergeron, F., Raymond, L. and Rivard, S. (2004). Ideal patterns of strategic alignment and business performance. Information & Management, 41, pp. 1003–1020. CrossRef,Web of Science® Times Cited: 62Bharadwaj, S., Bharadwaj, A. and Bendoly, E. (2007). The performance effects of complementarities between information systems, marketing, manufacturing, and supply chain processes. Information Systems Research, 18, pp. 437–453. 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PY - 2013/1

Y1 - 2013/1

N2 - Despite the importance to researchers and practitioners of how information technology (IT) contributes to organizational performance, there is an ongoing debate about the extent of IT business value (ITBV) and how to measure ITBV. Recently, a number of researchers have applied resource-based view (RBV) and contingency theory to investigating ITBV, with mixed results. Researchers have started to recognize that ITBV is closely associated with the synergies created from IT and a variety of complementary organizational factors, which might be an alternative way to explain these mixed results. Through a review of the literature, this paper assesses the current level of knowledge in ITBV research. It identifies that significant progress has been made in the research domain, but that in-depth inquiry into ITBV is still needed. Based on RBV and contingency theory, a research framework has been developed. The framework suggests that firms might be able to gain significant performance improvements if IT resources are in alignment with additional organizational factors (i.e. organizational strategy, organizational process, organizational culture, organizational structure). The authors believe that this framework will be valuable in assisting researchers and practitioners in understanding the complex ITBV process.

AB - Despite the importance to researchers and practitioners of how information technology (IT) contributes to organizational performance, there is an ongoing debate about the extent of IT business value (ITBV) and how to measure ITBV. Recently, a number of researchers have applied resource-based view (RBV) and contingency theory to investigating ITBV, with mixed results. Researchers have started to recognize that ITBV is closely associated with the synergies created from IT and a variety of complementary organizational factors, which might be an alternative way to explain these mixed results. Through a review of the literature, this paper assesses the current level of knowledge in ITBV research. It identifies that significant progress has been made in the research domain, but that in-depth inquiry into ITBV is still needed. Based on RBV and contingency theory, a research framework has been developed. The framework suggests that firms might be able to gain significant performance improvements if IT resources are in alignment with additional organizational factors (i.e. organizational strategy, organizational process, organizational culture, organizational structure). The authors believe that this framework will be valuable in assisting researchers and practitioners in understanding the complex ITBV process.

U2 - 10.1111/j.1468-2370.2012.00332.x

DO - 10.1111/j.1468-2370.2012.00332.x

M3 - Article

VL - 15

SP - 30

EP - 46

JO - International Journal of Management Reviews

T2 - International Journal of Management Reviews

JF - International Journal of Management Reviews

SN - 1460-8545

IS - 1

ER -