Daniel Q. Chen

Information systems strategy: reconceptualization, measurement, and implications

Information systems strategy is of central importance to IS practice and research. Our extensive review of the literature suggests that the concept of IS strategy is a term that is used readily; however, it is also a term that is not fully understood. In this study, we follow a perspective paradigm based on the strategic management literature to define IS strategy as an organizational perspective on the investment in, deployment, use, and management of IS. Through a systematic literature search, we identify the following three conceptions of IS strategy employed implicitly in 48 articles published in leading IS journals that focus on the construct of IS strategy: (1) IS strategy as the use of IS to support business strategy; (2) IS strategy as the master plan of the IS function; and (3) IS strategy as the shared view of the IS role within the organization. We find the third conception best fits our definition of IS strategy. As such, we consequently propose to operationalize IS strategy as the degree to which the organization has a shared perspective to seek innovation through IS. Specifically, our proposed IS strategic typology suggests an organizations IS strategy falls into one of the two defined categories (i.e., IS innovator or IS conservative) or is simply undefined. We also develop measures for this new typology. We argue that the proposed instrument, which was cross-validated across both chief information officers and senior business executives, has the potential to serve as a diagnostic tool through which the organization can directly assess its IS strategy. We contend that our reconceptualization and operationalization of IS strategy provides theoretical and practical implications that advance the current level of understanding of IS strategy from extant studies within three predominant literature streams: strategic IS planning, IS/business strategic alignment, and competitive use of IS.

Examining the Antecedents and Consequences of CIO Strategic Decision‐Making Authority: An Empirical Study

Despite the strategic importance of information technology (IT) to contemporary firms, chief information officers (CIO) often still have varying degrees of strategic decision-making authority. In this study, we apply the theory of managerial discretion to define CIO strategic decision-making authority and argue that the CIOs level of strategic decision-making authority directly influences ITs contribution to organization performance. We also draw on the power and politics perspective in the strategic decision-making literature to identify the direct antecedents to the CIOs strategic decision-making authority. A theoretical model is presented and empirically tested using survey data collected from a cross-industry sample of 174 matched pairs of CIOs and top business executives through structural equation modeling. The results suggest that organizational climate, organizational support for IT, the CIOs structural power, the CIOs level of strategic effectiveness, and a strong partnership between the CIO and top management team directly influence the CIOs level of strategic decision-making authority within the organization. The results also suggest that the CIOs strategic decision-making authority in the organization directly influences the contribution of IT to firm performance and that effective CIOs have a greater influence on ITs contribution when provided with strategic decision-making authority.

An examination of the antecedents and consequences of organizational IT innovation in hospitals

The healthcare industry is widely recognized as information-intensive and IT is considered to be an intrinsic component of the success of healthcare organizations such as hospitals. While both researchers and practitioners have argued that hospitals should aspire to be IT innovators, most tend to be IT laggards. An understanding of the factors that drive hospitals to become IT innovators remains an important phenomenon of interest. However, there is a lack of theory-driven empirical research that systematically investigates the factors that influence a hospitals strategic choice to be an IT innovator and the influence of IT innovation on hospital performance. This study bridges the extant gaps in the literature by developing and testing an integrated model that seeks to understand why certain hospitals are IT innovators. Using IT innovation theory as our theoretical foundation, we examine three antecedents, including the chief information officer (CIO) strategic leadership, the top management teams (TMT) attitude toward IT, and the hospitals climate. Further, we examine the influence of IT innovation on the impact of IT within the hospital and the influence of IT impact on the hospitals financial performance. The research model was tested using both survey and archival data from 70 matched pairs of hospital CIOs and executives. The quantitative analysis is supplemented with by interviews with 10 participating CIOs to further examine the relationship of the CIO to hospital IT innovation. The results suggest that the CIO strategic leadership and the TMTs attitude toward IT are key factors that influence IT innovation; however, the influence of a hospitals climate on organizational IT innovation is contingent upon the CIOs level of strategic leadership. The results also suggest that hospitals that are IT innovators can generate greater impact from IT, which in turn results in greater performance for the hospital. Theoretical and practical implications as well as future research directions are discussed.

How the Use of Big Data Analytics Affects Value Creation in Supply Chain Management

Abstract Despite numerous testimonials of first movers, the underlying mechanisms of organizations’ big data analytics (BDA) usage deserves close investigation. Our study addresses two essential research questions: (1) How does organizational BDA usage affect value creation? and (2) What are key antecedents of organizational-level BDA usage? We draw on dynamic capabilities theory to conceptualize BDA use as a unique information processing capability that brings competitive advantage to organizations. Furthermore, we employ the technology–organization–environment (TOE) framework to identify and theorize paths via which factors influence the actual usage of BDA. Survey data collected from 161 U.S.-based companies show that: organizational-level BDA usage affects organizational value creation; the degree to which BDA usage influences such creation is moderated by environmental dynamism; technological factors directly influence organizational BDA usage; and organizational and environmental factors indirectly influence organizational BDA usage through top management support. Collectively, these findings provide a theory-based understanding of the impacts and antecedents of organizational BDA usage, while also providing guidance regarding what managers should expect from usage of this rapidly emerging technology.

Understanding CIO Role Effectiveness: The Antecedents and Consequents

This research-in-progress paper describes the development of a research model exploring the antecedents and consequents of CIO role effectiveness. Specifically, we argue that CIO managerial discretion (the latitude of actions available to CIOs), CIO capability (business knowledge, IT knowledge, political savvy, and communication skill), and CIO/CEO shared understanding of IT role in the organization are important antecedents of CIO role effectiveness. In addition, we posit that an effective CIO will increase the contribution of IS function to the firm in terms of strategic, operational and financial impacts. The paper also outlines a proposed CIO/CEO matched-pair field survey method to test the research model

Generating Supplier Benefits through Buyer-Enabled Knowledge Enrichment: A Social Capital Perspective

In accordance with the tenets of social capital theory, the knowledge-based view of the firm, and absorptive capacity theory we provide an integrative research model that sheds light on how suppliers can derive benefits from a strong relationship with key buyers. In particular, we examine three research questions that address: (i) the interrelationships among the three dimensions of buyer–supplier social capital (structural, cognitive, relational); (ii) the mechanism through which buyer–supplier social capital can influence supplier performance; and (iii) the contingency factors that influence the key relationships in the main model. We empirically validate the research model using data collected from a North America-based major electronic components distributor (i.e., the buyer) and 166 of its suppliers. The findings of our data analysis indicate that structural and cognitive social capital influence relational social capital. The findings also support that relational social capital allows for the transfer of knowledge from the buyer to the supplier, which in turn leads to greater supplier cost efficiency and innovation. However, the influence of buyer–supplier relational social capital appears to be less important in lengthier buyer–supplier relationships. The analysis also indicates that the benefits derived from a suppliers knowledge enrichment are significantly greater when the supplier possesses greater exploitative capacity. These findings provide important extensions to theory describing buyer–supplier relationships, as well as providing clear prescriptions for suppliers and relationship managers.

From Innovative I.S. Strategy to Customer Value: The Roles of Innovative Business Orientation, CIO Leadership and Organizational Climate

While information systems (IS) have traditionally been used primarily for firm-wide operational efficiency, emerging theoretical perspectives have shifted scholarly focus to IS as a force that can drive value through business innovation. This study examines how IS strategy creates customer value through an innovative business orientation and how IS leadership and the organizational context can influence the relationship between innovative IS and business strategies. Integrating several research streams under the umbrella of the IS strategic management literature, we develop and empirically validate a research model based on confirmatory analysis and structural equation modeling applied to survey data collected from senior IS executives in 165 organizations based in the United States and India. Our results suggest that organizations that have an innovative IS strategy are well positioned to engage in business innovation, which in turn yields greater customer value. Furthermore, we find that strong IS leadership and a creative organizational climate enhance the relationship between an innovative IS strategy and innovative business orientation.

Core versus peripheral information technology employees and their impact on firm performance

Scholars have widely argued, but not previously examined, that core employees with firm specific skills are critical to the firms strategic success. This argument has led to the belief that employees whose skills are not firm specific can be readily replaced in the external market and are peripheral to the firms strategic goals. Employing a resource based view of the firm, we find that the core information technology (IT) employees with firm specific skills are value-adding resources that aid the firms performance whereas peripheral employees with less firm specific skills provide no value to the firms performance. Examining the issue deeper, we find that the economic impact of the presence of core IT employees is moderated by the organizations non-IT investment intensity. The findings of the research provide insights that help to expand the understanding of resource complements and the role of strategic human resources in a firm.