Heinz-Theo Wagner

Knowledge transfer processes in IT outsourcing relationships and their impact on shared knowledge and outsourcing performance

What is the impact of specific knowledge-transfer processes on the level of shared knowledge and, in turn, on outsourcing performance in outsourcing relationships? Drawing on a series of case studies covering IT providers and banks, we investigate several applied knowledge-transfer processes dedicated to the transfer of explicit or tacit knowledge between outsourcing banks and their providers. We examine the differential influence of various types of knowledge transfer on shared knowledge between the parties and on the resulting outsourcing performance. Results depict the differential impact of various knowledge-transfer processes dedicated to the transfer of explicit, or tacit knowledge, respectively, on the development of shared knowledge. Interestingly, the combination of both knowledge-transfer processes dedicated to the transfer of explicit knowledge and those dedicated to the transfer of tacit knowledge proves to be most effective. Furthermore the results indicate that high levels of shared knowledge positively influence outsourcing performance. In addition to previous literature, we found transfer processes for explicit knowledge in an outsourcing context to consist of two dimensions: The content dimension, primarily focused on in literature, and the sender-receiver dimension of transfer processes which are rarely addressed in outsourcing literature. The content dimension embraces mechanisms such as trainings, SLAs and standards that define how content has to be interpreted, whereas the sender-receiver dimension of transfer processes of explicit knowledge defines explicit, documented interaction structures between parties.

The impact of information technology on knowledge creation: An affordance approach to social media

Purpose – The purpose of this paper is to outline the potential of information technology, particularly social media and their affordances, in supporting knowledge creation within organizations. Design/methodology/approach – This is a conceptual paper which integrates the literature on both knowledge creation and social media. Findings – Social media may support knowledge creation by affording new types behaviors that were not possible with previous forms of computer-mediated communication. Research limitations/implications – The paper contributes to theory development by integrating knowledge creation theory and addressing the role of technology, more specifically social media and their affordances, in the knowledge creation process. Practical implications – The results of the paper will help managers to understand which social media affordances support the distinct knowledge creation processes and target their use of technologies within the organization accordingly. Originality/value – The paper is of h...

Reconsidering the Dimensions of Business-IT Alignment

While the literature on business-IT alignment has become increasingly mature in the past 20 years, different definitions and conceptualizations have emerged. Several dimensions like strategic, intellectual, structural, social, and cultural alignment have been developed. However, no integrated and broadly accepted categorization exists and these dimensions are non-selective and do overlap. In this paper, we critically compare and reflect the existing dimensions of alignment and synthesize what has been researched about alignment and guide future research by revealing gaps in alignment research suggesting an agenda for future research. In regard to analyzing alignment, we propose to clearly separate between the organizational level and the content of alignment, for which we suggest three distinct dimensions: (1) human dimension, (2) social dimension, (3) intellectual dimension. The result is a consolidated grid of alignment studies allowing to identify both areas with a mature and rich strand of literature and those lacking research.

IT Business Alignment and IT Usage in Operational Processes: A Retail Banking Case

What is the impact of operational (i.e. non-strategic) IT business alignment on IT usage? Using case studies in three branches of a retail bank employing identical information systems, many findings of the alignment literature can be supported. The cases also add new insights by showing that alignment is important in operations as well, and that alignment positively impacts IT usage. Especially mutual understanding between the business units and the IT unit turned out to be the single most important factor of IT usage that resulted from frequent interaction and, as far as the IT unit is concerned, from the business orientation of the IT personnel.

The Influence of Alignment on the Post-Implementation Success of a Core Banking Information System: An Embedded Case Study

The literature suggests that the success of an information system among others depends on its utilization. In this paper, we argue that operational IT business alignment is an important driver of system usage and thereby of the market success of the supported business process. Using an embedded case study in four branches, the back office, and the IT department of a retail bank, many findings of the recent alignment literature can be supported. Using a strict business process perspective, we also offer new insights by showing that alignment is important for IS success in operations as well and positively influences post-implementation IS usage. In particular, mutual understanding between the units and shared domain knowledge not only between IT and business but also between different business units supported by the same core IS turned out to be very important factors of IS usage that have so far been neglected

Achieving social alignment between business and IT – an empirical evaluation of the efficacy of IT governance mechanisms

How can firms improve the degree of social alignment between their business and IT units? Many years of research have shown the importance of business-IT alignment and its various facets, yet research on the efficacy of IT governance mechanisms to improve business-IT alignment is scarce. In this paper, we develop a model of social alignment at the operational level that considers the degree of social capital between an organization’s business and IT units, IT personnel’s business understanding, and a set of formal and informal IT governance mechanisms that drive the creation of social alignment and business value. Using survey data from 132 US banks, we show that social alignment is driven to varying degrees by a broad variety of IT governance mechanisms ranging from top management support and IT representation on the executive board to joint IT planning and IS training, regular meeting cycles, and liaison units. Our research contributes substantially to the practical demand on business-IT alignment research for an effective toolkit of IT governance mechanisms.

Towards an IT production function: Understanding routines as fundamental for IT value creation

Purpose – The goal of this paper is to identify core IT value drivers in firms and to model them as an IT production function to help disclose and measure the IT value creation process and to guide managers in seeking adequate ways of employing the IT resource.Design/methodology/approach – Based on a critical review of the literature on the resource‐based view, an IT value framework based on the constructs IT capability, resource, and routine is developed and then formalized as an IT production function.Findings – Organizational routines are decisive for turning firm resources into an IT capability and in turn into better business process performance. Shows how the IT value creation process in general and routines in particular can be measured and formalized.Practical implications – As the interaction between IT and business units is crucial for IT value generation, organizational routines provide for important knowledge flows that turn firm resources into value generating capabilities. Proposes a concret...

The Role of Internal Business/IT Alignment and IT Governance for Service Quality in IT Outsourcing Arrangements

This paper theoretically argues and empirically evaluates how a firms internal alignment and governance processes impact the service quality received from an external IT outsourcing provider. Using data from 154 firms, it is shown that good internal business/IT alignment leads to better and more accurate provider control processes which in turn improve service level agreements. The paper contributes to the literature in linking internal governance with external IT service quality, and by disclosing a largely neglected influence of alignment on governance and control processes.

Managing the Impact of IT on Firm Success: The Link between the Resource-Based View and the IT Infrastructure Library

In this paper, two distinct approaches to addressing the question what is the impact of IT on firm success, the resource based view (RBV) and information management, are incorporated. Both approaches provide valuable insights into how to use IT but have so far been rather independent of each other. While the RBV has provided valuable findings regarding the deployment of IT, at the same time lacking concrete practical applicability, the information management literature has suggested broadly accepted best practice frameworks like the IT Infrastructure Library (ITIL) evolved that lack theoretical grounding. This paper aims to link both approaches to make the RBV more applicable to practical problems and to inject theoretical grounding into ITIL thereby enhancing its value for managers. Employing a single case study approach, it is shown that ITIL can be theoretically based on the notion of resource-based learning loops and routines. Furthermore, it is indicated how parts of RBV insights can be applied to a practical problem.

THE ROLE OF KNOWLEDGE MANAGEMENT SYSTEMS FOR INNOVATION: AN ABSORPTIVE CAPACITY PERSPECTIVE

What is the role of Knowledge Management Systems (KMS) for a firms innovativeness and absorptive capacity (ACAP)? Research shows that a firms capacity to acquire and utilise relevant knowledge, i.e., its absorptive capacity, is decisive for innovation success. We develop a theoretical model that links the availability and usage of KMS with a firms ACAP and its organisational knowledge to explain its contribution for a firms innovation success. Using data from 222 manufacturing firms, we can show that the availability of a KMS in a firm affects its innovation success by contributing to its ACAP. Looking at the impact of different knowledge types on innovativeness, the results show that only technological knowledge is a substantial determinant of innovation success but not market knowledge.