The resource-based view of the firm attributes superior financial performance to organizational resources and capabilities. This paper develops the concept of IT as an organizational capability and ...empirically examines the association between IT capability and firm performance. Firm specific IT resources are classified as IT infrastructure, human IT resources, and IT-enabled intangibles. A matched-sample comparison group methodology and publicly available ratings are used to assess IT capability and firm performance. Results indicate that firms with high IT capability tend to outperform a control sample of firms on a variety of profit and cost-based performance measures.
Despite increasing anecdotal evidence that information technology (IT) assets contribute to firm performance and future growth potential of firms, the empirical results relating IT investments to ...firm performance measures have been equivocal. However, the bulk of the studies have relied exclusively on accounting-based measures of firm performance, which largely tend to ignore IT's contribution to performance dimensions such as strategic flexibility and intangible value. In this paper, we use Tobin's q , a financial market-based measure of firm performance and examine the association between IT investments and firm q values, after controlling for a variety of industry factors and firm-specific variables. The results based on data from 1988–1993 indicate that, in all of the five years, the inclusion of the IT expenditure variable in the model increased the variance explained in q significantly. The results also showed that, for all five years, IT investments had a significantly positive association with Tobin's q value. Our results are consistent with the notion that IT contributes to a firm's future performance potential, which a forward-looking measure such as the q is better able to capture.
Practice transfer processes in organizations often do not proceed as planned. Prior literature has viewed unplanned deviations as undesirable, emphasizing ways to reduce or overcome them.
...Performative deviations
refer to such unplanned deviations in the actual performance of practice transfer processes from the prescribed intentions of the organization. In this research, we seek to provide a fine-grained analysis of the nature of performative deviation paths through which practice transfer processes unfold by focusing on the role of power differentials. We find that power differentials among transfer participants can cause the unfolding practice transfers to deviate from prescribed processes along one of two alternative paths—the
agency-based performative deviation path
or the
knowledge-based performative deviation path
. Although the agency-based performative deviation path hinders successful practice transfer, the knowledge-based performative deviation path can actually be helpful to organizations. We draw on the dual-nature framework of organizational routines and the pluralist lens of power as our theoretical foundation and evidence-based medicine in healthcare as our empirical context to derive a set of propositions about the different performative deviation paths through which practice transfer processes unfold, based on the nature of power differentials among work roles involved in practice transfer and the different outcomes that result. The roles of
outcome uncertainty
and
information technology
are also presented.
The United States is in the midst of a drug overdose epidemic. Although the online availability of drugs has been a growing concern with considerable speculation that digital platforms are ...contributing to this epidemic, empirical assessments have been lacking. To quantify this impact, we rely on the phased rollout of Craigslist, a major online platform, as an experimental setup. Applying a difference-in-differences approach on a national panel data set for all counties in the United States from 1997 to 2008, we find a 14.9% increase in drug abuse treatment admissions, a 5.7% increase in drug abuse violations, and a 6.0% increase in drug overdose deaths after Craigslist’s entry. The impacts of Craigslist’s entry are larger among women, whites, Asians, and the more educated. Further, the unintended consequences of Craigslist are more likely to accrue in larger, wealthier areas with initially low levels of drug abuse. These findings raise the possibility that the marked growth in U.S. drug abuse may have partially stemmed from the wider availability of illicit drugs online at the very beginning of its evolution.
This paper was accepted by David Simchi-Levi, information systems.
Outsourcing of information technology (IT) services has received much attention in the information systems (IS) literature. However, considerably less attention has been paid to actual contract ...structures used in IT outsourcing (ITO). Examining contract structures yields important insights into how the contracting parties structure the governance provisions and the factors or transaction risks that influence them. Based on insights from prior literature, from practicing legal experts, and through in-depth content analysis of actual contracts, we develop a comprehensive coding scheme to capture contract provisions across four major dimensions: monitoring, dispute resolution, property rights protection , and contingency provisions . We then develop an empirical data set describing the contract structures across these distinct dimensions, using a sample of 112 ITO contracts from the Securities and Exchange Commission (SEC) database from 1993 to 2003.
Drawing on transaction cost, agency, and relational exchange theories, we hypothesize the effects of transaction and relational characteristics on the specific contractual provisions, as well as on overall contract extensiveness. Furthermore, we examine how these associations vary under conditions of fixed price and time and materials pricing structures. The results provide good support for the main hypotheses of the study and yield interesting insights about contractual governance of ITO arrangements.
We examine the role of sentry and guard activities in outsourced software development. Sentry activities are designed to regulate the inflow of external information to the project teams and guard ...activities are designed to manage the outflow of teams' information and resources to external sources. The use of sentry and guard activities has been examined in teams in other contexts such as new product development, but their role and relationship to performance in software development teams is not well understood. We hypothesize and test curvilinear relationships between these activities and knowledge integration in vendor development teams. We also examine how these effects vary under conditions of greater project uncertainty. We tested the hypotheses using data from 139 vendor development teams drawn from sixteen Indian software companies. Results highlight complex curvilinear associations among sentry and guard activities, and knowledge integration, which are further impacted by the level of uncertainty that the project team faces. We recommend that carefully calibrating sentry and guard processes will help vendor development teams enhance project outcomes.
Manufacturing firms are increasingly using advanced enterprise-level information systems to coordinate and synchronize externally oriented functions such as marketing and supply chain and internally ...oriented activities such as manufacturing. In this paper, we present a model of manufacturing performance that simultaneously considers the effects of a firm's integrated IS capability in conjunction with interfunctional and interorganizational coordination mechanisms. Consistent with the complementarity perspective, we view this specific form of IS capability as enhancing manufacturing's coordination with marketing and supply chain functions to drive manufacturing performance. Additionally, the theoretical model presented here introduces manufacturing-IS coordination, a form of coordination not considered in past research, as a key antecedent to integrated IS capability. The research thus provides a comprehensive framework for examining manufacturing performance in contexts that have been transformed by the use of advanced information systems. The theoretical model is tested using primary data collected from manufacturing firms and matched with objective manufacturing performance data from secondary sources. Results show that a firm's integrated IS capability, as well as the complementary effects of IS capability with manufacturing, marketing, and supply chain processes, are significant predictors of manufacturing performance. These findings are robust to concerns of endogeneity, unobserved heterogeneity, and alternative model specification.
Over the last three decades, the prevailing view of information technology strategy has been that it is a functional-level strategy that must be aligned with the firm's chosen business strategy. Even ...within this socalled alignment view, business strategy directed IT strategy. During the last decade, the business infrastructure has become digital with increased interconnections among products, processes, and services. Across many firms spanning different industries and sectors, digital technologies (viewed as combinations of information, computing, communication, and connectivity technologies) are fundamentally transforming business strategies, business processes, firm capabilities, products and services, and key interfirm relationships in extended business networks. Accordingly, we argue that the time is right to rethink the role of IT strategy, from that of a functional-level strategy—aligned but essentially always subordinate to business strategy—to one that reflects a fusion between IT strategy and business strategy. This fusion is herein termed digital business strategy. We identify four key themes to guide our thinking on digital business strategy and help provide a framework to define the next generation of insights. The four themes are (1) the scope of digital business strategy, (2) the scale of digital business strategy, (3) the speed of digital business strategy, and (4) the sources of business value creation and capture in digital business strategy. After elaborating on each of these four themes, we discuss the success metrics and potential performance implications from pursuing a digital business strategy. We also show how the papers in the special issue shed light on digital strategies and offer directions to advance insights and shape future research.
Software Process Diversity Ramasubbu, Narayan; Bharadwaj, Anandhi; Tayi, Giri Kumar
MIS quarterly,
12/2015, Letnik:
39, Številka:
4
Journal Article
Recenzirano
This article investigates software process diversity, defined as the project condition arising out of the simultaneous use of multiple software development process frameworks within a single project. ...Software process diversity is conceptualized as the response of a project team to such contingencies as requirements volatility, design and technological novelty, customer involvement, and the level of organizational process compliance enforced on the project. Moreover, we conceptualize that the degree of fit (or match) between a project’s software process diversity and the level of process compliance enforced on the project impacts overall project performance. This conceptualization was empirically tested by utilizing data collected from 410 large commercial software projects of a multinational firm. The results show that higher levels of requirements volatility, design and technological novelty, and customer involvement increased software process diversity within a project. However, software process diversity decreased relative to increases in the level of process compliance enforced on the project. A higher degree of fit between the process diversity and process compliance of a project, rather than the effects of those variables independently, was found to be significantly associated with a higher level of project performance, as measured in terms of project productivity and software quality. These results indicate that increasing software process diversity in response to project-level contingencies improves project performance only when there is a concomitant increase in organizational process compliance efforts. The implications of these results for research are discussed and prescriptive guidelines derived to manage the fit between process diversity and process compliance for improving software project performance.
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