Innovation, Information Systems Strategic Alignment and Business Value

2010 ◽  
Vol 1 (2) ◽  
pp. 38-54
Author(s):  
Euripidis Loukis ◽  
Ioakim Sapounas
Keyword(s):  
Information Systems ◽  
Strategic Alignment ◽  
Business Value ◽  
Innovation Strategy ◽  
Business Managers ◽  
Strategy Formulation ◽  
Firm Level ◽  
Level Data ◽  
Innovative Products ◽  
Implementation Level

For more than two decades the strategic alignment of information systems (IS) is one of the most important issues that IS and business managers face and at the same time a major research topic in the IS domain. In this paper the authors present an empirical study of the business value of IS strategic alignment, which examines IS strategic alignment both at the strategy formulation and implementation level. Also, investigated in this paper are the effects of adopting an innovation strategy on IS strategic alignment. The study is based on firm-level data from Greek companies, which are used for estimating econometric models of firm output based on the Cobb-Douglas production function. It is concluded that IS strategic alignment, both at the strategy formulation and implementation level, generates significant business value, increasing considerably the contribution of ICT investment to firm output. Finally, the adoption of innovation strategy has a positive effect on the strategic alignment of IS both at the strategy formulation and implementation level, as it puts pressure on firms to direct their IS investment towards the support of their new innovative products/services, and increases the involvement of organizational units.

Information Systems for Organizational Effectiveness Model

2012 ◽  
pp. 39-61
Author(s):  
Govindan Marthandan ◽  
Chun Meng Tang
Keyword(s):  
Information Systems ◽  
Organizational Effectiveness ◽  
Evaluation Model ◽  
Business Value ◽  
Business Managers ◽  
Vast Number ◽  
Organisational Effectiveness ◽  
Effectiveness Model ◽  
Evaluation Models ◽  
Is Evaluation

Despite the proposal of various Information Systems (IS) evaluation models and approaches, IS evaluation has never been straightforward. There are issues and challenges in proving the business value of IS. Adding to the difficulty, a vast number of measures have been employed conveniently for evaluation purposes without going through a rigorous validation process. Recognising the complexity for IS researchers, IS specialists, and business managers to agree on a common model for the evaluation of IS business value, this chapter presents an empirically validated IS evaluation model, the IS for organisational effectiveness (ISOE) model, for planning, designing, implementing, and appraising IS. There also emerges a new theory, the Information System business value (ISBV) theory, from the ISOE model to establish that IS business value is multifaceted and are observable in the form of improvements in organisational effectiveness.

scholarly journals The formation of Coasean institutions to provide university knowledge for innovation: a case study and econometric evidence for Switzerland

2020 ◽  
Author(s):  
Dominique Foray ◽  
Martin Woerter
Keyword(s):  
Innovation Performance ◽  
Institutional Setting ◽  
Firm Level ◽  
General Validity ◽  
Level Data ◽  
Econometric Evidence ◽  
Innovative Products ◽  
Type Of Institution ◽  
The Relationship

Abstract “Coasean” institutions are an alternative institutional form that provides a solution to some market and coordination failures. As such they can weaken considerably the case for public subsidies in a vast range of context. They are “market-based” and an inexpensive way to address the public good issues of R&D. They are, however, a largely overlooked institutional option. Early theoretical notions emphasize the advantages of such an institutional setting, however, broader empirical evidence about their effectiveness is lacking. We apply two different empirical approaches to assess the relationship between “Coasean” institutions and the innovation performance of SMEs. In a case study, we investigate Inspire AG, a successful bottom-up, institutional invention in the spirit of a “Coasean” institution. To assess the general validity of this model, we use representative firm-level data to econometrically investigate the relationship between “Coasean” institutions and the sales share of innovative products. “Coasean” institutions are positively related with innovative sales only if the company has a sufficiently large absorptive capacity for external knowledge. This positive moderating effect of “Coasean” institutions for the innovation performance is larger for SMEs. Our empirical findings provide a strong case for policies aimed at encouraging the operation of this type of institution.

Managing Innovation

2020 ◽  
pp. 205-216
Author(s):  
Siao Fong Tan
Keyword(s):  
Strategic Management ◽  
Technological Innovation ◽  
Product Innovation ◽  
Innovation Management ◽  
Innovation Strategy ◽  
Consumer Attitude ◽  
Technological Advancement ◽  
Strategy Formulation ◽  
Innovative Strategy ◽  
Innovative Products

This study emphasizes the overview of technology innovation that comprises the definition and the technological innovation categories distinction; the overview of consumer attitude towards product innovation focused on the consumer demand on innovative products, the stimulus purchasing factor, and the consumer satisfactory factors over product innovation; overview of sustainability innovation; innovation management as part of the strategic management; and challenges on innovative strategy formulation and implementation. Innovation strategy formulation requires detailed assessments on potential technological advancement, consumers' attitudes on innovative products, and sustainability impact on innovative initiatives. Innovation strategy is perceived as part of the strategic management, and the implementation depends on intra-organizational factors. The employee innovation adoptions as the connection between technological innovation, consumer behavior towards product innovation, and innovative sustainability for innovation strategy formulation can be further studied.

Technical Debt and Firm Performance

2020 ◽  
Author(s):  
Rajiv Banker ◽  
Yi Liang ◽  
Narayan Ramasubbu
Keyword(s):  
Information Systems ◽  
Negative Impact ◽  
Accounting Information ◽  
Business Value ◽  
System Level ◽  
Technical Debt ◽  
Firm Level ◽  
Economic Implications ◽  
Accounting Information Systems

Technical debt refers to the design, development, and implementation shortcuts taken by firms when deploying accounting information systems. Prior system-level studies have shown that such shortcuts decrease the reliability of systems and increase the long-term system maintenance obligations. On the one hand, technical debt may cause system disruptions that impair firm-level performance. On the other hand, incurring technical debt may aid firms to expedite their systems deployment and to implement idiosyncratic functionalities that may enhance performance. In this firm-level study, we examine the economic implications of technical debt accumulated by 26 firms in their customer relationship management (CRM) systems over an 11-year period. We find that firms operating in industries with higher “clockspeed” and higher competitive threats tend to accumulate more technical debt. After controlling for industry- and firm-level factors, our analysis reveals that technical debt embedded in the CRM systems negatively impacts firms’ performances, measured as gross profit scaled by beginning-of-year total assets (GROA). We estimate that a 10% increase in technical debt reduces GROA by 16% on average. The negative impact of technical debt on GROA increases over the lifecycle of the systems, which significantly reduces the long-term business value of those systems. Highly experienced information technology teams and the presence of a chief information officer in a firm’s top management team, however, serve to mitigate, at least partially, the negative impact of technical debt. We discuss the implications of these findings for research on the business value and governance of accounting information systems and performance evaluation. This paper was accepted by Shiva Rajgopal, accounting.

scholarly journals The effects of internal and external innovation strategies on process innovation in Vietnamese firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thuy Minh Thu Phung ◽  
Dat Tho Tran ◽  
Patrick Alexander Maria Vermeulen ◽  
Joris Knoben
Keyword(s):  
Process Innovation ◽  
Innovation Strategy ◽  
Firm Level ◽  
Content Type ◽  
Logistic Regression Models ◽  
Institutional Settings ◽  
Level Data ◽  
Institutional Contexts ◽  
Innovation Strategies ◽  
The Impact

Purpose This paper aims to investigate the antecedents of process innovation to provide more alternates for Vietnamese firms as they are still struggling to find an appropriate innovation strategy. Design/methodology/approach The research analyzes the separate impacts of each innovation strategy on process innovation using logistic regression models. Data were collected using a stratified random sampling method. Findings The results show that having an innovation strategy is good for innovation, regardless of whether the strategy is internal or external. Internal and external strategies are proved not complements but substitutes. However, the internal strategy seems to be most beneficial. Weak institutional settings further strengthen the importance of internal strategies, whereas strong institutional settings favor external strategies. Originality/value This paper analyzes the impact of different innovation strategies on process innovation in Vietnamese firms using firm-level data. The findings strongly recommend that in weak institutional settings such as Vietnam, firms should focus on an internal strategy because the emphasis on external innovation strategies might be a western bias stemming from research in mostly strong institutional contexts.

Information Systems Strategies and the Management of Organizational Change – a Strategic Alignment Model

1993 ◽  
Vol 8 (4) ◽  
pp. 205-216 ◽  
Author(s):  
Janice M. Burn
Keyword(s):  
Organizational Change ◽  
Information Systems ◽  
Dynamic Change ◽  
Strategic Alignment ◽  
Strategy Formulation ◽  
Stages Of Growth ◽  
Organizational Configurations ◽  
Is Strategy ◽  
Alignment Model ◽  
The Relationship

This article presents findings of an investigation into the relationship between organizational configurations and alternative patterns of information systems (IS) development. The study focuses on the IS strategic process. A theoretical framework is developed to examine the relationships between organizational and IS strategy formulation processes. The framework was evaluated in 56 organizations. Results of the analysis support the theory that different stages of growth in the use and development of IS require different approaches to strategy, and that different approaches to strategy are favoured by different organizational configurations. Evaluation of the relationship between organizational change and IS developments reveals a pattern of strategic alignment reflecting the interdependencies between the organizational configuration and the stage of IS growth. It would appear that transitions through this alignment model are characterized by periods of dynamic change which can be predicted at certain stages of growth. The model may prove useful both to assist in the management of organizational change and to identify appropriate IS strategy formulation approaches.

Implicit Taxes Amid Race to the Bottom in a Global Tax Game

2020 ◽  
Vol 27 (2) ◽  
pp. 42
Author(s):  
Igor Semenenko ◽  
Junwook Yoo ◽  
Parporn Akathaporn
Keyword(s):  
Capital Mobility ◽  
Tax Rates ◽  
Corporate Tax ◽  
Firm Level ◽  
Race To The Bottom ◽  
Tax Subsidy ◽  
Tax Subsidies ◽  
Level Data ◽  
Tax Returns ◽  
Tax Hypothesis

Growing tax competition among national governments in the presence of capital mobility distorts equilibrium in the international corporate tax market. This paper is related to the literature that examines impact of international tax policies on corporate accounting statements. Employing international firm-level data, this study revisits the race-to-the-bottom hypothesis and documents that tax exemptions lowering effective tax rates relative to statutory rates increase pre-tax returns. This finding directly contradicts the implicit tax hypothesis documented by Wilkie (1992), who provided empirical evidence on inverse relationship between pre-tax return and tax subsidy. We also find evidences that relative importance of permanent versus timing component depends on the geography and that decline in corporate tax rates reduces impact of tax subsidies on profitability. Our findings suggest that tax subsidies play a different role than in 1968-1985, which was examined by Wilkie (1992). These results are consistent with the race-to-the-bottom hypothesis and income shifting explanation

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