T. Ravichandran

Effect of Information Systems Resources and Capabilities on Firm Performance: A Resource-Based Perspective

We draw on the resource-based theory to examine how information systems (IS) resources and capabilities affect firm performance. A basic premise is that a firms performance can be explained by how effective the firm is in using information technology (IT) to support and enhance its core competencies. In contrast to past studies that have implicitly assumed that IS assets could have direct effects on firm performance, this study draws from the resource complementarity arguments and posits that it is the targeted use of IS assets that is likely to be rent-yielding. We develop the theoretical underpinnings of this premise and propose a model that interrelates IS resources, IS capabilities, IT support for core competencies, and firm performance. The model is empirically tested using data collected from 129 firms in the United States. The results provide strong support for the research model and suggest that variation in firm performance is explained by the extent to which IT is used to support and enhance a firms core competencies. The results also support our proposition that an organizations ability to use IT to support its core competencies is dependent on IS functional capabilities, which, in turn, are dependent on the nature of human, technology, and relationship resources of the IS department. These results are interpreted and the implications of this study for IS research and practice are discussed.

Quality management in systems development: an organizational system perspective

We identify top management leadership, a sophisticated management infrastructure, process management efficacy, and stakeholder participation as important elements of a quality-oriented organizational system for software development. A model interrelating these constructs and quality performance is proposed. Data collected through a national survey of IS executives in Fortune 1000 companies and government agencies was used to test the model using a Partial Least Squares analysis methodology. Our results suggest that software quality goals are best attained when top management creates a management infrastructure that promotes improvements in process design and encourages stakeholders to evolve the design of the development processes. Our results also suggest that all elements of the organizational system need to be developed in order to attain quality goals and that piecemeal adoption of select quality management practices are unlikely to be effective. Implications of this research for IS theory and practice are discussed.

Software reuse strategies and component markets

Black-box reuse with component markets could be the silver bullet solution that makes software reuse a reality, and advances software development to a robust industrial process---but only if market makers address the growing pains plaguing this immature industry.

Total quality management in information systems development: key constructs and relationships

The availability of high-quality software is critical for the effective use of information technology in organizations. Research in software quality has focused largely on the technical aspects of quality improvement, while limited attention has been paid to the organizational and sociobehavioral aspects of quality management. This study represents one effort at addressing this void in the information systems literature. The quality and systems development literatures are synthesized to develop eleven quality management constructs and two quality performance constructs. Scales for these constructs are empirically validated using data collected from a national survey of IS organizations. A LISREL framework is used to test the reliability and validity of the thirteen constructs. The results provide support for the reliability and validity of the constructs. A cluster analysis of the data was conducted to examine patterns of association between quality management practices and quality performance. The results suggest that higher levels of institutionalization of all quality management practices are associated with higher levels of quality performance. Our results also suggest that key factors that differentiated high- and low-quality performing IS units include senior management leadership, mechanisms to promote learning and the management infrastructure of the IS unit. Future research efforts directed at causally interrelating the quality management practices should lead to the development of a theory of quality management in systems development.

How to anticipate the Internet's global diffusion

T racking the Internet’s global diffusion is a daunting but increasingly important task, especially for network capacity planners [8]. A 1997 report found that the Internet consists of more than 16 million registered host computers. Conceived initially as a demonstration project for the U.S. government, the Internet today aggregates traffic from a vastly wider set of constituencies. And commercial use now accounts for 58% of Internet traffic, far exceeding the network’s original purposes in research and education [2]. But consumers of Internet-related services are regularly frustrated by slow response time, inaccessible online services, and breakdowns leading to services being unavailable. These problems can follow inadequate capacity planning caused by ignorance of the Internet growth process. For example, planning for the number of hosts that can be supported has to account for the network’s potential future use. Rapid growth could lead to the saturation of address spaces for new hosts much more quickly than expected. Developing models that explain the growth process is critical for policy formulation, capacity planning, and introducing new network hardware and software. Growth projections inform providers of Internet products and services of the potential consumer base. Many other businesses, including training and educational enterprises, also need to reorient their strategic plans to account for Internet diffusion. Understanding Internet growth patterns involves assessing alternative models for the Internet diffusion process. The internal influence model is one class of models used to study the diffusion phenomenon. These models are informed by the diffusion of innovation and various economic theories and assume that nonadopters of an innovation are increasingly likely to imitate adopters over time. Empirical studies have used these models to investigate the diffusion of such communication systems as residential telephones [1], telecommunication sysHow to Anticipate the Internet’s Global Diffusion

Diversification and Firm Performance: Exploring the Moderating Effects of Information Technology Spending

A large body of research has examined the performance effects of diversification. However, these results have been mixed, and scholars have called for examining contingencies under which the effects of different types (related, unrelated, geographic) and levels of diversification on performance vary. This study attempts to fill this gap in the literature by arguing that examining the performance effects of diversification is incomplete without taking into consideration the firms information technology (IT) spending. We posit that IT, by enabling coordination and control in firms, is likely to moderate the relationship between diversification and performance. Combining arguments from both resource-based view and the organizational controls literature, we theorize about the moderating effects of IT spending under different types and levels of diversification. Using data from large U.S. manufacturing firms, we test our research hypotheses. Our results indicate that while IT spending interacts with related diversification to have a positive effect on firm performance, similar interactions with unrelated diversification do not have any effects on firm performance. Furthermore, the interaction between IT spending and geographic diversification is positively associated with performance only when the level of geographic diversification is low. We interpret and discuss these results and highlight the theoretical and practical implications of our findings.

Organizational assimilation of complex technologies: an empirical study of component-based software development

The rapid rate at which new information technologies are emerging and their increasing complexity pose significant challenges for information systems departments in understanding and assimilating them. This has lead to a need for studies focused on the barriers to the adoption and assimilation of complex technologies. This research synthesizes the economic and organizational learning perspectives of technology adoption and identifies key adoption barriers, mechanism to reduce these barriers, and proposes a research model that interrelate these factors to the assimilation of complex technologies. The research context for this paper is the assimilation of one complex technology, namely, component-based software development (CBD) by information systems (IS) departments. Data collected from IS units in the United States is used to test the model using partial least square analysis. The results provide evidence that organizations better positioned to overcome knowledge barriers because of their knowledge stocks are likely to be further along in the assimilation process than others and that knowledge sharing by technology vendors positively influences technology assimilation by reducing the learning burden of the adopters. It was also found that exposure to signals from technology vendors reduced the technology uncertainty perceived by the adopters.

A framework for information systems planning for e‐business

E‐business information systems are computer applications that leverage intra‐ and inter‐firm process and systems integration. Considering the growth and strategic importance of e‐business, while it is important for organizations to carefully plan for and architect e‐business systems, none of the existing information systems planning models is adequate for the task. An e‐business architecture planning model is developed by identifying 12 generic e‐business models and three axes on which drivers of the information architecture needs of e‐business firms fall. Sowa and Zachman’s information architecture is augmented to further facilitate e‐business information systems architecture planning.

Inter-organizational information systems research: a critical review and an integrative framework

This paper reviews the literature on inter-organizational information systems. It has long been argued that information technology can have profound effects on the structure and process of interfirm relationships. This proposition has gained additional importance with the advent of Internet, and resultant forms of business to business transactions over the Web. Despite the interest and volume of research on this topic few theoretical generalizations have emerged. The lack of theorization has been compounded by the fact that the literature has grown in many directions to address various technological and practitioner concerns. To date, there have not been many reviews that put this body of work in perspective. To address this gap we propose a framework to review this field of research, and provide a means to reconcile the differences and appreciate the complementarities that run through this research stream. Our framework is based on two important themes, inter-organizational information systems, and inter-organizational relationships. We argue that the research in this area can be effectively analyzed by understanding the persuasion of the researchers regarding these two central themes. The review is followed by a discussion of future research directions in this area.

Effects of Institutional Pressures on Information Technology Investments: An Empirical Investigation

Information technology (IT) investments account for a significant proportion of capital budgets of most firms today. While research attention so far has been focused on if and how firms benefit from these investments, limited attention has been paid to understand what determines the IT investment levels of firms. In this study, we examine the effects of institutional pressures and firm characteristics on the IT investment levels of a firm after controlling the financial conditions of the firm. Using available data from secondary sources, we find that the IT investment intensity of a firm is positively associated with that of its competitors, suppliers, and customers. We also find that the degree of institutional shareholding is positively associated with its IT investment intensity. Our results shed light on the motives and drivers of IT investment decisions by highlighting that these decisions are influenced by both economic considerations and legitimacy considerations such as conforming to institutional norms.