Business-IT alignment as a coevolution process: An empirical study

2023 | Journal of Strategic Information Systems | Citations: 0

Authors: Amarilli, Fabrizio; Van Den Hooff, Bart; Van Vliet, Mario

Abstract: In this paper, we provide a detailed insight into the complex coevolution dynami ... Expand

Abstract: In this paper, we provide a detailed insight into the complex coevolution dynamics that shape the alignment process by analyzing how different mechanisms and factors are mutually related in complex networks of feedback loops. We combine insights from the literature on alignment as a (coevolution) process with literature on alignment as a state to identify the different components of the organization’s socio-technical system that influence alignment, the relationships between these components, and the role that different factors play. In our empirical analysis (based multiple case studies) we then focus on the actual interplay between relevant factors. Using a causal loop diagramming approach - based on system dynamics – we analyze how these factors mutually influence each other through various feedback loops and thus shape the alignment process. We extend previous literature on the alignment process by identifying the way that the complex interplay between different factors shapes this process. By identifying the feedback loops between relevant factors, we also provide more insight into the complex bottom-up and top-down dynamics that shape the process, and that provide explanations for why this process is charac­ terized by transitions between alignment and misalignment. For practice, our paper provides a deeper understanding of the alignment process, which is a precondition for improving alignment practices in organisations. Collapse

Topics: Chief Information Officer IT alignment strategic management IT project enterprise information system

Methods: qualitative interview case study multiple case study theoretical contribution system dynamics

Theories: co-evolution theory socio technical theory complex adaptive system

Strategic Investments for Platform Launch and Ecosystem Growth: A Dynamic Analysis

2023 | Journal of Management Information Systems | Citations: 0

Authors: Anderson Jr., Edward G.; Parker, Geoffrey G.; Tan, Burcu

Abstract: Multi-sided platforms must make decisions on both pricing and engineering invest ... Expand

Abstract: Multi-sided platforms must make decisions on both pricing and engineering investment and must continually adjust them as the platform scales over its lifecycle. Engineering investments can be allocated to features that improve a platform's standalone value, social features to take advantage of same-side network effects, or integration tools and boundary resources to facilitate third-party content creation. Guidance in the academic or practitioner literature is not granular. Moreover, relevant normative economic models that consider externalities are rarely dynamic. Hence, there is a gap in knowledge about how to best balance tradeoffs between different strategic decisions throughout the entire platform lifecycle. To begin to address this gap, we explore normative strategies for coordinating pricing and engineering investment decisions on a continuous basis under different ecosystem conditions. We build a simulation model informed by economics and marketing theory and perform extensive sensitivity analyses on key parameters in different ecosystem scenarios over a multi-period lifecycle. We find that pricing and investment strategies must continuously change to perform optimally. In particular, strategies that are most effective at launch often differ from those that are most effective during scaling as well as those most effective at maturity. We also find that the optimal strategy depends strongly on the monetization model and market aversion to price changes. Lastly, we specifically examine four different industry segments: mobile platforms, social media, the sharing economy, and business-to-business. The results provide evidence that the trajectory of platform pricing and investment strategies should greatly differ depending on industrial context. Collapse

Topics: price management digital platform social media decision making business-to-business

Methods: simulation sensitivity analysis system dynamics optimization model conjoint analysis

Theories: control theory marketing theory

DLT-based Regulatory Systems Dynamics

2023 | HICSS | Citations: 0

Authors: Beck, Roman; Jain, Geetika

Abstract: In this research, we examine the interplay between ‘actors’ and ‘agents’ in Dist ... Expand

Abstract: In this research, we examine the interplay between ‘actors’ and ‘agents’ in Distributed Ledger Technology (DLT) systems. We identify regulatory interactions between off-chain agents setting the rules, as well as on-chain code as actors regulating the behavior of DLT users. We theorize about the relationship between agents and actors that mutually regulate each other in certain ways through the DLT system and identify the significant dimensions related to the trifecta in which the soft system agent sphere regulation of DLT is likely to interact with the hard system actor sphere regulation by DLT. By proposing the trifecta between DLT design, DLT protocol, and DLT use, we explain the relationship between these three and the role of DLT protocol as a mediator between DLT design and DLT use. Our research sheds light on the dynamics within DLT systems and the regulating forces at play from a systems’ thinking perspective.e. Collapse

Topics: blockchain IT governance distributed ledger technology peer-to-peer model information technology infrastructure

Methods: theory development design artifact structured literature research literature sample system dynamics

Theories: structuration theory

Reject and Resubmit: A Formal Analysis of Gender Differences in Reapplication and Their Contribution to Women’s Presence in Talent Pipelines

2023 | Organization Science | Citations: 0

Authors: Fernandez-Mateo, Isabel; Rubineau, Brian; Kuppuswamy, Venkat

Abstract: A common explanation for women’s underrepresentation in many economic contexts i ... Expand

Abstract: A common explanation for women’s underrepresentation in many economic contexts is that women exit talent pipelines at higher rates than men. Recent empirical findings reveal that, in male-dominated selection contexts, women are less likely than men to reapply after being rejected for an opportunity. We examine the conditions under which this gender difference contributes to women’s underrepresentation in talent pipelines over time. We formally model and analyze the population dynamics of a generic selection context, which we then ground using three distinct empirical settings. We show that gender differences in reapplication are an important mechanism of gender segregation in some selection contexts but negligible in others. The extent to which gender differences in reapplication contribute to women’s underrepresentation is driven in part by the rejection rate. Higher rejection rates increase the stock of rejected applicants, which in turn enables gender differences in reapplication to disproportionally reduce women’s representation. The results demonstrate that interactions between individuals’ choices on the supply side and screeners’ behavior on the demand side may have consequences for gender inequality, even if we were able to fully eliminate demand-side biases. We discuss the theoretical and policy implications of our research for understanding women’s underrepresentation in talent pipelines. We also interrogate the effectiveness of common interventions focused on encouraging women to apply for opportunities in male-dominated domains. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1635. Collapse

Topics: crowdfunding crowdsourcing anonymity

Methods: theory development simulation descriptive statistic robustness check system dynamics

Effective Information Infrastructures for Collaborative Organizing: The Case of Maasai Mara

2023 | Organization Science | Citations: 0

Authors: Håkonsson, Dorthe Døjbak; Larsen, Erik Reimer; Eskildsen, Jacob Kjær

Abstract: This study focuses on how collaborative organizing is achieved in a natural-reso ... Expand

Abstract: This study focuses on how collaborative organizing is achieved in a natural-resource commons, organized as an actor-oriented structure. In a framed field experiment, teams of Maasai livestock owners played a board game related to sustainable usage and preservation of a commons (in this case, grazing areas). We examine team decisions over time and draw inferences about the difference between two information infrastructures: one that enables learning about the ecosystem and one that enables shared situational awareness. We also examine the effectiveness of these information infrastructures in obtaining sustainable usage and preservation of a commons, finding that participants who are subjected to an information infrastructure that enables shared situational awareness are more effective than those subjected to an information infrastructure that only enables learning about the ecosystem. This, we argue, is because shared situational awareness enables members to address their interdependencies related to both task and knowledge interdependence. In other words, without shared situational awareness, they are less efficient at coordinating their actions, despite sharing collaborative values. Based on our findings, we argue that actor-oriented structures should be designed to include information infrastructures that specifically address members’ interdependencies. Funding: This work was financially supported by the Interacting Minds Centre (IMC). Supplemental Material: The e-companion is available at https://doi.org/10.1287/orsc.2022.1642. Collapse

Topics: information technology infrastructure situational awareness collaborative consumption open source online community

Methods: experiment chi squared test field experiment simulation qualitative interview

Theories: loss aversion

Supporting Business Model Decision-making in B2B Ecosystems: A Framework for Using System Dynamics

2023 | HICSS | Citations: 0

Authors: Ksouri-Gerwien, Christoph; Vorbohle, Christian

Abstract: Digital technologies have led to new ways of creating value across organizationa ... Expand

Abstract: Digital technologies have led to new ways of creating value across organizational boundaries within business ecosystems and now increasingly transform existing business models. However, organizations searching for a successful business model in an ecosystem environment are faced with uncertainty. Previous studies have shown that decision-making can be improved systematically with modeling and simulation. We conducted a two-year action design research study with a B2B start-up and developed a framework with a business ecosystem perspective that supports the use of System Dynamics. This research investigates how an organization in a B2B ecosystem can use simulation to decide on a business model while considering the perspective of other ecosystem actors. We contribute to research on business ecosystems and provide a foundation for further improvements of quantitative business model development tools. Collapse

Topics: business model digital ecosystem value creation decision making business-to-business

Methods: simulation action design research design artifact system dynamics design science

Delays Impair Learning and Can Drive Convergence to Inefficient Strategies

2023 | Organization Science | Citations: 0

Authors: Rahmandad, Hazhir; Gary, Michael Shayne

Abstract: With so many possible choices, why do managers adopt the strategies they do? We ... Expand

Abstract: With so many possible choices, why do managers adopt the strategies they do? We identify delays between adopting a strategy and observing the full implications of that choice as a critical factor influencing strategic choices. Using a simulation of a service firm, we conduct two behavioral experiments to investigate how delays interact with outcome uncertainty to shape learning, strategy adaptation, and performance outcomes. Two mechanisms emerge from how different subject groups perceive, react to, and learn in the presence of delayed feedback and uncertainty. First, when multiple viable strategies exist, longer delays lead both general participants and experienced managers toward alternatives that have rapid returns. When those alternatives are suboptimal, delays may strengthen convergence to inefficient strategies. Second, delays and uncertainty may also induce learners to persist with their a priori strategies. Managers show larger confidence in their priors and thus underperform general participants when the underlying task structure diverges from those priors. Both mechanisms can undermine performance. Moreover, delays and uncertainty may reduce heterogeneity in strategies and performance in more dynamic, uncertain environments, leading to convergence as tasks grow more complex and where decision makers possess similar priors.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: Funding from the Massachusetts Institute of Technology and UNSW Business School supported this research.Supplemental Material: The online appendices are available at https://doi.org/10.1287/orsc.2020.1405. Collapse

Topics: human resource management decision making social influence advertising management

Methods: experiment simulation statistical power analysis statistical hypothesis test experimental task

Theories: behavioral theory

Getting Trapped in Technical Debt: Sociotechnical Analysis of a Legacy System’s Replacement

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Rinta-Kahila, Tapani; Penttinen, Esko; Lyytinen, Kalle

Abstract: Organizations replace their legacy systems for technical, economic, and operatio ... Expand

Abstract: Organizations replace their legacy systems for technical, economic, and operational reasons. Replacement is a risky proposition, as high levels of technical and social inertia make these systems hard to withdraw. Failure to fully replace systems results in complex system architectures involving manifold hidden dependencies that carry technical debt. To understand how a process for replacing a complex legacy system unfolds and accumulates technical debt, we conducted an explanatory case study at a local manufacturing site that had struggled to replace its mission-critical legacy systems as part of the larger global company’s commercial-off-the-shelf (COTS) system implementation. We approach the replacement as a sociotechnical change and leverage the punctuated sociotechnical information system change model in combination with the design-moves framework to analyze how the site balanced creating digital options, countering social inertia, and managing (architectural) technical debt. The findings generalize to a two-level (local/global) system-dynamics model delineating how replacing a deeply entrenched mission-critical system generates positive and negative feedback loops within and between social and technical changes at local and global levels. The loops, unless addressed, accrue technical debt that hinders legacy system discontinuance and gradually locks the organization into a debt-constrained state. The model helps managers anticipate challenges that accompany replacing highly entrenched systems and formulate effective strategies to address them. Collapse

Topics: systems implementation enterprise resource planning IT governance enterprise architecture information system use

Methods: qualitative interview case study system dynamics triangulation archival research

Theories: socio technical theory theory of bounded rationality

The Vicious Circles of Skill Erosion: A Case Study of Cognitive Automation

2023 | Journal of the Association for Information Systems | Citations: 0

Authors: Rinta-Kahila, Tapani; Penttinen, Esko; Salovaara, Antti; Soliman, Wael; Ruissalo, Joona

Abstract: Cognitive automation powered by advanced intelligent technologies is increasing ... Expand

Abstract: Cognitive automation powered by advanced intelligent technologies is increasingly enabling organizations to automate more of their knowledge work tasks. Although this often offers higher efficiency and lower costs, cognitive automation exacerbates the erosion of human skill and expertise in automated tasks. Accepting the erosion of obsolete skills is necessary to reap the benefits of technology-however, the erosion of essential human expertise is problematic if workers remain accountable for tasks for which they lack sufficient understanding, rendering them incapable of responding if the automation fails. Though the phenomenon is widely acknowledged, the dynamics behind such undesired skill erosion are poorly understood. Thus, taking the perspective of sociotechnical systems, we conducted a case study of an accounting firm that had experienced skill erosion over a number of years due to reliance on their software's automated functions. We synthesized our findings using causal loop modeling based on system dynamics. The resulting dynamic model explains skill erosion via an interplay between humans' automation reliance, complacency, and mindful conduction. It shows how increasing reliance on automation fosters complacency at both individual and organizational levels, weakening workers' mindfulness across three work task facets (activity awareness, competence maintenance, and output assessment), resulting in skill erosion. Such skill erosion may remain obscure, acknowledged by neither workers nor managers. We conclude by discussing the implications for theory and practice and identifying directions for future research.Walter Fernandez was the accepting senior editor. This research article was submitted on August 17, 2021 and underwent three revisions.Tapani Rinta-Kahila is a lecturer of business information systems at The University of Queensland Business School. His research focuses on issues around the implementation and management of artificial intelligence systems in organizations, unintended consequences of IT use, and decommissioning of organizational IT systems. Tapani obtained his doctoral degree from Aalto University School of Business in 2018 with an award-winning dissertation. Rinta-Kahila's research has appeared in top IS journals, including MIS Quarterly, Journal of the Association for Information Systems, European Journal of Information Systems, Information & Management, and MIS Quarterly Executive. His work has also informed practice through industry reports co-authored with The SAP Institute for Digital Government.Esko Penttinen is an associate professor (tenured) of information systems at the Aalto University School of Business. Penttinen holds a DSc in information systems science and an MSc in economics from the Helsinki School of Economics. Penttinen's research helps organizations understand the intricacies related to the design and implementation of various forms of artificial intelligence, harnessing its benefits and avoiding the pitfalls. Penttinen is an avid student of the interplay between humans and machines, curious to generate insights on how to coordinate work tasks efficiently between the two. Penttinen's research has also addressed the more traditional information systems topics such as organizational governance issues related to outsourcing and virtual work. Penttinen's main practical expertise lies in the assimilation and economic implications of interorganizational information systems, focusing on application areas such as electronic financial systems, government reporting, and electronic invoicing. Penttinen's research has appeared in leading IS outlets such as MIS Quarterly, Joona Ruissalo is a doctoral researcher in information systems science at the Aalto University School of Business. His research explores how the design, development, and use of cognitive technologies such as robotic process automation and artificial intelligence transform professional knowledge-intensive work. He currently studies these sociotechnical issues in the domain of financial accounting. Collapse

Topics: accounting mindfulness artificial intelligence knowledge work process automation system

Methods: qualitative interview case study applicability check personal interview triangulation

Theories: sociotechnical systems theory socio technical theory

Capturing the Dynamic Nature of Cyber Risk: Evidence from an Explorative Case Study

2023 | HICSS | Citations: 0

Authors: Zeijlemaker, Sander; Siegel, Michael

Abstract: In this research, we developed a novel approach to enable a dynamic cyber risk m ... Expand

Abstract: In this research, we developed a novel approach to enable a dynamic cyber risk management strategy as the dynamic nature of cyber risk is rarely considered in current decision support tools. Our explorative case study shows that many management challenges such as investment decisions, priority setting, and “shelf time” analyses can be continuously analyzed. Our research using system thinking and modelling provides valuable insights about these challenges to support current strategic decision-making practices and improve managerial learning. These insights enable management to identify and analyze the effectiveness of future cyber risk management strategies before implementing them. Collapse

Topics: risk management strategic management decision support system decision making systems development

Methods: case study simulation system dynamics experiment reference modelling