Carol V. Brown

ERP Investments and the Market Value of Firms: Toward an Understanding of Influential ERP Project Variables

This study contributes to the growing body of literature on the value of enterprise resource planning (ERP) investments at the firm level. Using an organization integration lens that takes into account investments in complementary resources as well as an options thinking logic about the value of an ERP platform, we argue that not all ERP purchases have the same potential impact at the firm level due to ERP project decisions made at the time of purchase. Based on a sample of 116 investment announcements in United Statesbased firms between 1997 and 2001, we find support for our hypotheses that ERP projects with greater functional scope (two or more value-chain modules) or greater physical scope (multiple sites) result in positive, higher shareholder returns. Furthermore, the highest increases in returns (3.29) are found for ERP purchases with greater functional scope and greater physical scope; negative returns are found for projects with lesser functional scope and lesser physical scope. These findings provide empirical support for prior theory about the organizational integration benefits of ERP systems, the contribution of complementary resource investments to the business value of IT investments, and the growth options associated with IT platform investments. The article concludes with implications of our firm-level findings for this first wave of enterprise systems.

The management of end-user computing: status and directions

The development of computing applications by the people who have direct need for them in their work has become commonplace. During the 1980s, development of applications by “end users” accelerated and became a key management and research concern. Known as “end-user computing,” the phenomena and research associated with this trend cross a variety of disciplines. This article critically surveys the published literature on end-user computing (EUC) management according to a comprehensive research model. The article introduces the EUC management research model, identifies prior research contributions, and offers guideline for the future. The focal points of the model are two EUC management components which represent two different levels of theorizing found in the literature. The first level focuses on the organization factors of strategy, technology, and management action. The second level focuses on the individual factors of end user, task, tool, and end-user action. The remainder of the model includes factors typically investigated as the antecedents (context) and consequences (outcomes) of EUC. More than 90 English-language articles published from 1983-1990 are mapped into the model. Specific variables for each factor are identified; research streams are interpreted; findings are synthesized; and gaps in our knowledge are highlighted. We then raise a number of substantive and methodological issues that need to be addressed and suggest two themes we envision as important for EUC management research in the 1990s: EUC as an extension of organizational computing and EUC as a social learning phenomenon. Guidance is offered for using these theme to inform future research.

IT Human Resource Management Configurations and IT Turnover: Theoretical Synthesis and Empirical Analysis

Increasingly, scholars and practitioners acknowledge that information technology (IT) human capital is a strategic resource and that its effective management represents a significant organizational capability. We use configurational theory to examine organizational practices related to the management of IT human capital. In contrast to much prior work in IT human resource management (HRM) that is focused at the individual level, our inquiry is focused at the organizational level of analysis. Building on strategic human resource management (SHRM) research in general and research on the management of IT professionals in particular, we examine the broad question: Are different configurations of IT HRM practices associated with different IT staff turnover rates? A multidimensional view of IT HRM practices is presented, based on prior IT and SHRM literature. We formalize hypotheses regarding the relationship of turnover with configurations of IT HRM practices grounded in prior theory and empirical research. Based on survey responses from 106 organizations, IT HRM dimensions and configurations are derived and the hypotheses are tested. A five-configuration solution, obtained via cluster analysis, includes two contrasting configurations consistent with two archetypes found in the prior literature. Specifically, the configuration with a human capital focus has lower turnover than the task-focused configuration, providing support for our first hypothesis. Although the hypothesis on intermediate configurations and their relationship with turnover is not supported, we discover and interpret three additional configurations that embody patterns of practices with unique emphases. Theoretical and practical implications of the findings are discussed.

Re‐assessing the Enabling Role of Information Technology in KM

This paper examines the role of information technology as an enabler of Knowledge Management. It begins with the premise that Knowledge Management requires an under‐standing of knowledge creation at the individual level, and argues that IT tools are necessary, but not sufficient, for enabling sense‐making. The organizational IT role is assessed in terms of: mechanisms to facilitate knowledge creation; the information sources organizational decision‐makers use; and sense‐making activities to support innovation. Frameworks for thinking about initiatives that include IT capabilities and people capabilities are presented for each of these concepts, along with relevant examples. The paper concludes with four IT management guidelines.

Host Country Resource Availability and Information System Control Mechanisms in Multinational Corporations: An Empirical Test of Resource Dependence Theory

The management of the information systems (IS) function is a complex task, particularly in the case of multinational corporations (MNCs), where installations dispersed across distance, time, and cultures can lead to diverse and incompatible systems spreading among foreign subsidiaries. The need to globally control and coordinate the IS management function is often met with resistance from local IS managers, who may perceive corporate standards as intrusive. Resource dependence theory (RDT) argues that control is made easier when a subsidiary unit is dependent on corporate headquarters for critical resources. This study examined the IS management relationship and the use of various mechanisms of control (formal and informal) between 54 headquarters-subsidiary pairs spread across 19 countries of varying resource-richness. While RDT appears to be valid when subsidiaries are dependent on MNC headquarters for resources, the expected relationship between the mechanisms and host country IS resource availability was not observed. Although there was a significant relationship with the use of informal mechanisms and IS resources, it was in the opposite direction to what would be expected by RDT.

Observations from “the front”: IT executives on practices to recruit and retain information technology professionals

1. ABSTRACT Human resource practices used to recruit and retain people in information technology (IT) have received considerable attention recently. IT Managers exhausted with hiring and keeping IT workers are as likely to find exasperation as find inspiration when they pore over the myriad practices described in hard-copy or electronic publications that cross their desks (e.g., Frankel, 1997; ColeGomolski, 1998). Recent research has provided a useful taxonomy that can help make sense of the bewildering array of recruitment and retention practices that managers could consider (Agarwal and Ferratt, 1998). Through use of this taxonomy, the objective of the research reported here is to describe the set of recruitment and retention practices IT managers are employing and view as most effective. An examination of these practices will provide valuable guidance to both researchers and practitioners.

The information systems balancing act: building partnerships and infrastructure

Describes how IS (information systems) units are currently applying balancing mechanisms to help them address the limitations of organizational structure. IS units require organizational structures that both facilitate partnerships with business unit clients and enable tight co‐ordination of computing platforms to strengthen the technology infrastructure. For years, IS executives have recognized that the structure that best supports each objective is counterproductive for the other objective. Thus, they have periodically undertaken major restructuring, which has the effect of alternating between the objectives rather than addressing them simultaneously. Today’s IS executives, however, are increasingly attempting to achieve partnership and infrastructure development simultaneously by implementing balancing mechanisms: structural overlays and process enhancements that leverage the strengths of an existing organizational structure while compensating for its limitations. Balancing mechanisms enable the IS function to work towards those dual IS management goals simultaneously, as well as to respond more quickly to today’s competitive environment. Also describes individual balancing mechanisms used in Fortune 500 firms and a strategy for implementing suites of mechanisms to achieve IS management goals.

Partnering Roles of the IS Executive

IS partnering-the formation of linkages with managers both internal and external to the IS department-is critical to effective leadership in todays strategically focused organizations. This article discusses the leadership and partnering roles essential to IS managers as well as to an ideal IS management team.

Performance Metrics for it Human Resource Alignment

Abstract The objective of this article is to present some of the issues involved in designing performance metrics to better align the IT organization with the business. It begins with a high-level goal alignment framework. Then some guidelines for selecting what to measure, and how to measure, are presented. A case example is then used to demonstrate some practices in detail. the article concludes with a short discussion of best practices and ongoing challenges.

Perceived risks and management actions: differences in end-user application development across functional groups

Essentially unaddressed in prior end-user computing (EUC) research is an important context factor: the functional department of the end-user. Just as individual employees vary in their EUC tool and management support needs, we propose that not all functional departments in the same firm will use EUC tools for the same tasks, perceive the same EUC risks, and have the same management control needs. This article reports on an exploratory study designed to investigate potential differences across functional groups in the same organization for three factors: application tasks, policies to minimize risk and perceived EUC benefits. Based on the data collected from semi-structured interviews and questionnaires from IS and IC management, functional managers, and end-users, significant differences across functional groups can exist. This suggests that the workgroup is an important contextual factor. That should be taken into account in future EUC research. A research model is provided based on the results of this exploratory study.