In this paper we examine why firms seek to control and own interorganizational information systems, or IOS. Practitioners have largely cited the issues related to control and ownership of IOS, referred to as IOS governance in this paper, as the key reason behind the failure of many IOS initiatives. We distinguish between two IOS governance modes, transactional and financial, and develop a mediated-moderation model to explain the factors influencing the governance choices. In our model, the key motivators of IOS governance are the criticality and the replaceability of the resources that firms procure, which affect IOS governance through their influence on the degree of operational integration existing between partners. We hypothesize that while resource criticality will increase the needs for financial and transactional governance because of its positive impact on operational integration, resource replaceability will negatively influence governance needs because of its negative impact on operational integration. Furthermore, technological uncertainty associated with the resources is argued to negatively impact the extent of IOS governance exercised by firms by weakening the positive impact of resource criticality and strengthening the negative impact of resource replaceability on operational integration respectively. We empirically test our model using data gathered from a survey of 159 United States manufacturing firms. Results show that resource criticality positively affects the extent of financial and transactional IOS governance by increasing the need for operational integration, whereas resource replaceability negatively affects them by reducing the need for operational integration. Furthermore, technological uncertainty creates disincentives for IOS governance primarily by weakening the positive influence of resource criticality on operational integration, while no statistically significant effect of technological uncertainty on the relationship between resource replaceability and operational integration was discerned.
The provision of services has become an increasingly important component of the economy of industrialized countries and the revenue stream for many traditional product companies. This is especially true for companies that offer information technology (IT) products. This paper examines factors that are associated with the extent to which IT product companies are able to develop service revenue, which we refer to as service expansion of IT product companies. We identify the characteristics of the product portfolio-specifically, the composition and scope of firm offerings among hardware, application software, and infrastructure software-as key to successful service expansion. We also propose that this relationship is moderated by prior performance of the product business and industry characteristics such as concentration and maturity. Data from IT product vendors spanning five years are used to test the proposed relationships. Overall, this research provides a theoretical foundation for understanding service expansion and diversification in the IT industry as well as practical guidance for IT product companies considering expansion to services.
Researchers in competitive dynamics have demonstrated that firms that carry out intense, complex, and heterogeneous competitive actions exhibit better performance. However, there is a need to understand factors that enable firms to undertake competitive actions. In this study, we focus on two antecedents of competitive behavior of firms: (1) access to network resources and (2) use of information technology (IT). We argue that while network structure provides firms with the opportunity to tap into external resources, the extent to which they are actually exploited depends on firms' IT-enabled capability. We develop a theoretical model that examines the relationships between IT-enabled capability, network structure, and competitive action. We test the model using secondary data, about 12 major automakers over 16 years from 1988 to 2003. We find that network structure rich in structural holes has a positive direct effect on firms' ability to introduce a greater number and a wider range of competitive actions. However, the effect of dense network structure is contingent on firms' IT-enabled capability. Firms benefit from dense network structure only when they develop a strong IT-enabled capability. Our results suggest that IT-enabled capability plays both a substitutive role, when firms do not have advantageous access to brokerage opportunities, and a complementary role, when firms are embedded in dense network structure, in the relationship between network structure and competitive actions.
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.
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. The 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.