IT Business Value | ScienceGate

Purpose Considering performance measurement and management systems (PMMS) to be “mission-critical” information systems for many business organisations, calls have been made for researchers to shift from studying the use of such systems to studying their “effective” use, and in so doing to focus on their characterisation as information technology (IT) artefacts. The paper aims to discuss this issue. Design/methodology/approach In seeking to answer these calls, the authors apply Burton-Jones and Grange’s theoretical framework to study the dimensions, contextual drivers and benefits of the effective use of PMMS. This is done through a field study of 16 PMMS artefacts as used in small- and medium-sized enterprises (SMEs). Findings In characterising, contextualising and valuing the effective use of PMMS, this study provides answers to the following questions: What constitutes the effective use of PMMS? What are the user, artefactual and task-related drivers of such use? And what are the benefits for SMEs of using performance measurement and management (PMM) systems effectively? Practical implications With regard to the design of a PMMS artefact, the findings imply that one should concentrate on those artefactual attributes that most enable informed action on the part of owner-managers, as it is these actions have the greater consequences for the realisation of IT business value in SMEs. Moreover, the nomological network resulting from this research provides the theoretical and methodological underpinnings of a diagnostic tool meant to develop the PMM function in SMEs. Originality/value This study provides further empirical grounding and understanding. This study provides further empirical grounding and understanding of the concept of effective use, as well as further applicability and actionability to this concept and to the nomological network of its dimensions, contextual drivers and benefits in the case of PMMS and in the context of SMEs.

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Organizational Assimilation Capacity and IT Business Value

Encyclopedia of Information Science and Technology, Second Edition ◽

10.4018/978-1-60566-026-4.ch468 ◽

2011 ◽

pp. 2929-2933

Author(s):

Vincenzo Morabito ◽

Gianluigi Viscusi

Keyword(s):

Information Systems ◽

Competitive Advantage ◽

Large Scale ◽

Top Management Teams ◽

Business Value ◽

Organizational Assimilation ◽

It Business Value ◽

Business Executives ◽

Is Integration ◽

Assimilation Capacity

IT business value represents important outcomes in firms (Banker & Kauffman, 2004; Gable, Darshana, & Chan, 2003; Ravichandran & Chalermsak Lertwongsatien, 2005) whereas information systems (IS) integration represents a relevant amount of the IT spending. Notwithstanding, while most firms are making major investments in information technology, particularly in information systems integration (e.g., ERP and data warehouse solutions), not all of them apply IT effectively in their business activities (Brynjolfsson, McAfee, Zhu, & Sorell, 2006; Dehning & Stratopoulos, 2003; Jason, Vijay, & Kenneth, 2003) obtaining IT business value and organizational competitive advantage. This research is based on an integrative model of IT business value, aiming to evaluate the mediating effect of an “IT organizational assimilation capacity” between IS integration and organization competitive advantage. Taking into account the theoretical premises that IT business value is generated by the exploitation of both IT and organizational resources, we develop a research model and propose two research hypotheses. The model and the related hypotheses are based on a large-scale sample survey (Francalanci & Morabito, 2006). The responses were obtained from 466 CIOs and senior business executives, who were members of the firms’ top management teams in Italian companies.

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Thirst for Business Value of Information Technology

International Journal of Technology Diffusion ◽

10.4018/jtd.2010010103 ◽

2010 ◽

Vol 1 (1) ◽

pp. 28-40 ◽

Cited By ~ 3

Author(s):

Govindan Marthandan ◽

Tang Chun Meng

Keyword(s):

Information Technology ◽

Business Value ◽

Competitive Advantages ◽

Business Managers ◽

Business Value Of It ◽

It Business Value ◽

Efficiency And Effectiveness ◽

Strategic Role ◽

Value Of It ◽

Insight Into

For years information technology (IT) has helped companies improve organizational efficiency and effectiveness. Today’s IT plays a more strategic role in building capabilities for sustaining and creating competitive advantages. The increasing importance of IT has led many organizations to integrate it into their daily operations. To justify the ever-increasing spending on IT, organizations have been searching for evaluation methods to prove the business value of IT. However, this is a challenging undertaking, as there are contradictory answers to questions on whether it is worthwhile to pay substantial sums for IT. To gain insight into the reasons behind the contradictory answers, this paper first reviews conflicting research results of past studies on IT business value. It then explains the term IT productivity paradox. Last, it provides five reasons why IT business value is not fully reflected in the way business managers expect it to be.

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IT and Fast Growth Small-to-Medium Enterprise Performance: An Empirical Study in Australia

Australasian Journal of Information Systems ◽

10.3127/ajis.v19i0.1012 ◽

2015 ◽

Vol 19 ◽

Cited By ~ 3

Author(s):

Rui Bi ◽

Robert M Davison ◽

Kosmas X Smyrnios

Keyword(s):

Organizational Performance ◽

Structural Equation ◽

Business Value ◽

Fast Growth ◽

Equation Modeling ◽

It Business Value ◽

It Capability ◽

Industrial Sectors ◽

It Resources ◽

Medium Enterprises

Information technology (IT) is regarded as a facilitator for both small and large firms to speed up transactions between firms and their suppliers and customers, achieve real-time communication, lower transaction costs, and enhance speed and flexibility. However, understanding whether and how IT helps small-to-medium enterprises (SMEs) to create business value still remains unclear. Drawing upon resource-based view theory, source-positional advantage-performance framework, we develop and test a theoretical model to explore the interrelationships between IT resources (IT expertise, IT infrastructure), IT capability (IT integration), IT-enabled inter-firm partnership processes (activity integration, coordination, partnership enhancement), and organizational performance in the fast growth SME context. We propose that IT business value depends on how firms employ IT resources to develop IT capability which facilitates inter-firm partnership processes along value chains. Structural equation modeling is employed to test our theoretical conceptualization of 310 Australian fast-growth SMEs across different industrial sectors. Results show that IT contributes to fast growth SME performance through the development of IT capability and enhancement of inter-firm partnership activities. This research highlights the role of IT in business value creation and the ways in which IT is used by fast growth SMEs to foster core business competencies.

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