Immanuel Pahlke

Mindfully resisting the bandwagon: reconceptualising IT innovation assimilation in highly turbulent environments

Environmental turbulence (ET), as exemplified by the recent financial crisis between 2007 and 2009, leads to a high degree of uncertainty, and fosters mimicry and resulting bandwagon phenomena in information technology (IT) innovation assimilation processes. In these highly turbulent environments, ‘mindless’ IT innovation assimilation by participating organizations plays a major role in the manifestation and facilitation of mimetic influences. Even in less turbulent economic cycles, highly turbulent industries such as the financial services industry have to deal with demanding IT innovation assimilation processes, and are exposed to varying levels of ET and mimicry. Drawing upon the theory of dynamic capabilities, organizational mindfulness (OM) is one viable means to mitigate the potentially negative consequences of mimetic behaviour. Here, mindful organizations are more successful in overcoming situations of high dynamism, and sometimes are even able to exploit them. So far, little empirical research has been conducted to quantify the influence of OM in scenarios of high dynamism and mimicry. On the basis of 302 complete responses from senior IT managers in the financial services industry from the Anglo-Saxon countries (the United States, Canada and the United Kingdom), this research contributes to a deeper understanding of the interaction of OM with institutional pressures against the background of ET.

Colocation as a Hybrid ICT Sourcing Strategy to Improve Operational Agility

Fast access to communication networks and the availability of high-performance information and com-munication technology (ICT) infrastructures is indis-pensable for accelerating business transactions. Yet with increased environmental volatility, companies need to become more agile in identifying and responding to market- and technology-based challenges. Accordingly, a responsive and high-performance ICT infrastructure remains a top priority for firms. Thus, new ICT sourcing strategies may lead to significant competitive advantages, especially in dynamic business environments. This article analyzes a hybrid ICT sourcing strategy called colocation that allows firms to operate their own ICT resources in facilities of special-ized data center providers. Grounded in the theory of dynamic capabilities, we theorize and empirically ex-amine how colocation and top management support enable firms to improve their operational agility in the presence of environmental turbulence.

IMPACT OF GRID ASSIMILATION ON OPERATIONAL AGILITY IN TURBULENT ENVIRONMENTS: AN EMPIRICAL INVESTIGATION IN THE FINANCIAL SERVICES INDUSTRY

Enterprises increasingly adopt value chain improving technologies to retain a competitive position in a rapidly changing, uncertain, and demanding environment. Due to its hyper-competitive market, especially the financial services industry is exposed to a high level of environmental turbulence and resulting uncertainty (Ang and Cummings 1997). The ongoing need to realize and adapt to these environmental changes is reflected by the concept of agility which describes one of the key success factors for organizations striving to stay competitive, even in uncertain and turbulent markets (Dove 2001).