The nature of the task to be performed by the information systems (IS) unit as a contextual factor has received little attention in the IS research literature. In addition, prior empirical work examining IS structure lacks theoretical foundation. In this paper we first clarify the multidimensional nature of an organization's subunit structure. Then, we examine the impact of the structure variables on the perceived effectiveness of a subunit of lS--software development--using "task" as the contextual contingency influencing this relationship. Organizational information processing theory provides the theoretical foundation for this study. Analysis of data from thirty hospital reveals that a contingency relationship exists between task context and structural dimensions of software development subunits in determining their effectiveness. Task complexity and decision-making structure in interaction exhibit a nonmonotonic effect on the software development subunit's effectiveness. While the interaction of subunit work flow interdependence with both decision-making structure and control structure was significant, the direction of effect was unexpected. Implications of these findings for practicing managers, and IS planners and researchers are discussed.
The article attempts to identify the important factors for the strategic use of information systems technology (IST) by examining the multifaceted role of IST in the healthcare context. Three propositions are developed from re-examining a variety of IST applications both within and outside healthcare organizations, re-applying the integration concept from the literature, and examining field experiences in the healthcare industry. The author states that the popularity of IST can be attributed to several factors such as the changing economic conditions, which include long-term high inflation, high interest rates, and low real growth. The article also discusses hospital information systems (HIS) as a competitive weapon.