Navigating the Paradox of IT Novelty and Strategic Conformity: The Moderating Role of Industry Dynamism

2023 | International Conference on Information Systems | Citations: 0

Authors: Chaturvedi, Devina; Kathuria, Abhishek; Andrade, Mariana; Saldanha, Terence

Abstract: Although achieving strategic distinctiveness is critical for firms in dynamic i ... Expand

Abstract: Although achieving strategic distinctiveness is critical for firms in dynamic industries, where the competitive landscape and market conditions frequently change, there is a paucity of research on the impact of information technology (IT) on a firm's strategic conformity (or distinctiveness). Motivated by the importance of strategic conformity and emergence of novel technologies, we draw on institutional theory and hypothesize that IT Novelty positively impacts strategic conformity. Second, drawing on resource-based view, we hypothesize that market dynamism and competitive dynamism negatively moderate the effect of IT Novelty on strategic conformity. Third, we hypothesize that the moderating impact is stronger for market dynamism than competitive dynamism. We find support for our hypotheses using a fifteen-year dataset from over 300 U.S. manufacturing firms. Our study contributes to theory and managerial practice by combining institutional and resource-based view perspectives to examine how IT Novelty shapes a firm's strategic conformity, particularly in dynamic industry conditions. Collapse

Topics: database system decision making artificial intelligence internet of things mobile system

Methods: longitudinal research autocorrelation analysis hierarchical linear modeling robustness check regression analysis method

Theories: resource based view of the firm institutional theory

Blood and Water: Information Technology Investment and Control in Family-owned Businesses

2023 | Journal of Management Information Systems | Citations: 0

Authors: Kathuria, Abhishek; Karhade, Prasanna P.; Ning, Xue; Konsynski, Benn R.

Abstract: Family-owned businesses differ in their strategic intent and behavior as they se ... Expand

Abstract: Family-owned businesses differ in their strategic intent and behavior as they serve as a reservoir of wealth and social status for their family owners. Family-owned businesses demonstrate relatively conservative strategic decision making that aspires long-term wealth preservation and enhancement. For family owners, investments in information technology (IT) raise a predicament as they are risky, yet a long-term imperative. We propose three hypotheses that build upon the thesis that family owners combine a deep understanding of the business with a strong influence on stakeholders within and beyond the firm's boundaries to exert strategic control in the extended enterprise. First, family ownership negatively influences IT investment, because family owners are likely to avoid investments in IT that are frivolous, reduce information asymmetry, or leave auditable digital trails. Second, the negative influence of family ownership on IT investment is weakened when a career professional is appointed in the senior-most executive position of a family-owned business. This is because professional executives strive to utilize IT for control and performance benefits, and family owners desire to use IT to monitor and control the non-family professional executive. Third, family ownership weakens the negative influence of environmental hostility on the relationship between IT investment and firm performance, as family-owned businesses incur less dynamic adjustment costs and maintain better alignment between IT and business strategy. Empirical analysis, consisting of panel regression estimations, on archival data of publicly listed Indian firms in the years 2006 to 2018 provides support for our theory that highlights how IT for control acts as a noneconomic motivation for the strategic IT behavior of firms. In doing so, we bring family ownership into the theoretical foreground for future IS scholarship. We contribute to theory and practice by advancing the nature of ownership and executive management as sources of heterogeneity in IT investment and its business value. Collapse

Topics: IT investment organizational productivity information system use strategic management research and development

Methods: longitudinal research autocorrelation analysis cross sectional research statistical hypothesis test time series analysis

Theories: lemon market theory

Enterprise System Implementations: Role of Information Risk, Internal Controls and Environmental Uncertainty

2016 | International Conference on Information Systems | Citations: 0

Authors: Sambhara, Chaitanya; Rai, Arun; Xu, Sean Xin

Abstract: We examine how information risk affects firms’ implementation of enterprise syst ... Expand

Abstract: We examine how information risk affects firms’ implementation of enterprise systems (ES). We differentiate between firms’ implementation of accounting enterprise systems (AES) that are directly associated with the integration and processing of financial information and their implementation of complementary enterprise systems (CES) that provide operational activity information to AES. We investigate the relationship between information risk and the prioritization of AES and CES and consider two important contextual characteristics: firm’s internal controls, and environmental uncertainty. We test our hypothesis using a five-year panel data of 883 firms. We find that with an increase in information risk, firms prioritize implementation of AES when faced with weak internal controls, and prioritize implementation of CES in complex and dynamic environments. The results expand our understanding of how firms’ IS resource allocation is influenced by information risk and how internal controls and external environments affect resource allocation to ES under different conditions. Collapse

Topics: accounting enterprise information system environmental uncertainty supply chain management resource allocation

Methods: descriptive statistic theory development robustness check generalized least square Lagrange multiplier test

Theories: resource based view of the firm economic theory of complementarity

Investments in Information Technology: Indirect Effects and Information Technology Intensity

2009 | Information Systems Research | Citations: 42

Authors: Mittal, Neeraj; Nault, Barrie R.

Abstract: Many studies measure the value of information technology (IT) by focusing on how ... Expand

Abstract: Many studies measure the value of information technology (IT) by focusing on how much value is added rather than on the mechanisms that drive value addition. We argue that value from IT arises not only directly through changes in the factor input mix but also indirectly through IT-enabled augmentation of non-IT inputs and changes in the underlying production technology. We develop an augmented form of the Cobb-Douglas production function to separate and measure different productivity-enhancing effects of IT. Using industry-level data from the manufacturing sector, we find evidence that both direct and indirect effects of IT are significant. Partitioning industries into IT-intensive and non-IT-intensive, we find that the indirect effects of IT predominate in the IT-intensive sector. In contrast, the direct effects of IT predominate in the non-IT intensive sector. These results indicate structural differences in the role of IT in production between industries that are IT-intensive and those that are not. The implication for decision-makers is that for IT-intensive industries the gains from IT come primarily through indirect effects such as the augmentation of non-IT capital and labor. Collapse

Topics: information system use IS effectiveness manufacturing information system productivity system deployment

Methods: longitudinal research autocorrelation analysis time series analysis econometric modeling Lagrange multiplier test

Order Lead-Time Improvement Following Enterprise Information Technology Implementation: An Empirical Study

2006 | Management Information Systems Quarterly | Citations: 4

Authors: Cotteleer, Mark J.; Bendoly, Elliot

Abstract: This paper investigates the influence of enterprise systems implementation on op ... Expand

Abstract: This paper investigates the influence of enterprise systems implementation on operational performance. The work extends the literature on enterprise systems by focusing on changes in process dynamics as a source for ongoing firm-level performance improvement. A case discussion of Tristen Corporation, a firm that implemented ERP and subsequently experienced benefits through gains to its continuous improvement efforts, is examined in light of theorized impacts of such implementations on process dynamics. Analyses of longitudinal data suggest that performance along a key metric motivating the ERP initiative (i.e., order fulfillment lead-time) showed a significant improvement immediately after system deployment. The data further suggest that the system implementation gave rise to an ongoing trend of performance improvement, in contrast to a stable performance trend prior to go-live. Collapse

Topics: enterprise resource planning organization learning enterprise information system accounting systems implementation

Methods: longitudinal research autocorrelation analysis analysis of covariance qualitative interview generalized least square