FROM IT ASSETS TO BUSINESS AND ECONOMIC VALUE

This study conceptually develops a Business Value if IT (BVIT) model, conjointly and innovatively using four theoretical frameworks, the Resource-Based View(RBV) of the firm, Knowledge-Based View (KBV), Contingency theory, and the Strategic Alignment Model. The developed model proposes that IT-enabled knowledge and communication capabilities, which actually create IT-enabled economic value (EVIT), can be driven by organizational strategy and resources via their impact on IT strategy and resources. The study contributes to the extant body of knowledge by developing three new IT-driven business value constructs: Know-Tech, Com-Tech, and EVIT along with theoretical grounding and implications about empirical measurements. It is thus suggested that IT-enabled knowledge and communication capabilities mediate the effects of organizational and IT strategies and resources on EVIT, thereby illustrating the paths that lead from IT components to IT-embedded capabilities and to EVIT. The model implies that IT matters in modern knowledge-based turbulent and dynamic competitive environments by contributing to the acquisition of organizational IT-Embedded knowledge and communication capabilities that can drive sustainable economic value. The proposed model also shows the paths by which IT contributes to eventual organizational economic gains albeit indirectly through deeply embedded, inimitable, dynamic and valuable organizational knowledge and communication capabilities. This research paves the way to an empirical investigation of \u27IT-Embeddedness\u27 as recently called for by scholars

An Empirical Study of IT-enabled Enterprise Risk Management and Organizational Resilience

Contemporary organizations are increasingly challenged by the expanding variety of risks and threats posed by turbulent and complex business environments. This paper addresses the importance of organizations having the ability to cope with risks and uncertainties by exploring IT-enabled enterprise risk management (ERM) capability as a means of achieving organizational resilience. Based on the synthesis of prior risk management theoretical frameworks, we posit that information technology is a key enabler of enterprise risk management capability that integrate risk management into enterprise-wide business processes, with organizational commitment as a complementary enabler. By examining the relationship of IT-enabled ERM capability and organizational resilience under the moderating effect of business network structure strength, this study provides insights on how to ensure continued survival of organizations in today’s volatile operating climate where risks extend beyond the organizational boundaries. Empirical findings from a survey of 185 organizations in Singapore show that IT assets and organizational commitment play significant roles in building up IT-enabled ERM capabilities. Organizational resilience is also found to be strongly impacted by the organization’s IT-enabled ERM capabilities, while the firm’s business network structure strength negatively moderates this relationship to a small extent. Managerial implications stemming from the empirical findings are discussed and directions for future research on enterprise risk management as a burgeoning research area for IS researchers are also offered

Mindfully Resisting the Bandwagon – IT Implementation and Its Consequences in the Financial Crisis

Although the ”financial meltdown” between 2007 and 2009 can be substantially attributed to herding behaviour in the subprime market for credit default swaps, a “mindless” IT implementation of participating financial services providers played a major role in the facilitation of the underlying bandwagon. The problem was a discrepancy between two core complementary capabilities: (1.) the (economic-rationalistic) ability to execute financial transactions (to comply with the herd) in milliseconds and (2.) the required contextualized mindfulness capabilities to comprehend the implications of the transactions being executed and the associated IT innovation decisions that enabled these transactions

The Organizational Fitness Navigator: Creating and Measuring Organizational Fitness for Fast-Paced Transformation

In the fast-changing environment of today dynamic capabilities to manage organizational transformation are regarded as crucial for business survival and improved performance. Although dynamic organizational capabilities have been receiving intense scrutiny by researchers and practitioners in the past few years, relatively little attention has been directed towards creating a systemic model of dynamic capabilities, and how to effectively measure what the authors call organizational fitness capabilities. This paper builds on the concepts of organizational fitness and its profiling (OFP), and proposes the organizational fitness navigator (OFN) as a systemic model of dynamic organizational capabilities. Part of the OFP model is a systemic scorecard (SCC) as a measurement tool for organizational fitness - in contrast to the well-known balanced scorecard (BSC) - for improving business survival and performance in increasingly networked environments.dynamic capabilities, organizational fitness, organizational fitness profiling, organizational fitness navigator, systemic scorecard

IT DYNAMIC CAPABILITY DEVELOPMENT IN THE CONTEXT OF DATA GENESIS CAPABILITY

Dynamic Capabilities are often considered as the factor justifying the different degrees of success of organizations in turbulent environment. However Dynamic Capability development remains a difficult issue to research, with a paucity of work directly addressing this question, despite its importance. The explanation of the development of Dynamic Capabilities would give organizations the instruments to rationally improve their chance of success and to more likely sustain their competitive advantage. We contribute to the emerging literature on Information Technology (IT) Dynamic Capability development by proposing a research framework grounded in the three sources of Dynamic Capabilities: organizational processes, firm history and firm's assets. Our model takes into consideration also the moderating role played by environmental turbulence on Dynamic Capability development and on process performance. In this contribution we lay the theoretical and methodological groundwork and we foresee the test of the model using Data Genesis (DG) capability as the context. DG is the Dynamic Capability of (1) choosing IT to generate and capture data in digital form, (2) integrating the technology in the appropriate business processes, and (3) managing the digital data so produced.IT capability; Dynamic Capability; capability development; Data Genesis

A survey of simulation techniques in commerce and defence

Despite the developments in Modelling and Simulation (M&S) tools and techniques over the past years, there has been a gap in the M&S research and practice in healthcare on developing a toolkit to assist the modellers and simulation practitioners with selecting an appropriate set of techniques. This study is a preliminary step towards this goal. This paper presents some results from a systematic literature survey on applications of M&S in the commerce and defence domains that could inspire some improvements in the healthcare. Interim results show that in the commercial sector Discrete-Event Simulation (DES) has been the most widely used technique with System Dynamics (SD) in second place. However in the defence sector, SD has gained relatively more attention. SD has been found quite useful for qualitative and soft factors analysis. From both the surveys it becomes clear that there is a growing trend towards using hybrid M&S approaches

IT Capabilities – Quo Vadis?

The successful management of IT capabilities and their complex interdependencies with other organizational capabilities constitutes an important source of competitive advantage for many organizations today. The role of IT capabilities in enabling competitive actions is well-researched. By reviewing a large number of IT capabilities-focused research articles, the authors seek to answer the questions, “What have we learned? What do we still need to learn?” This research-in-progress article presents key findings regarding IT capabilities, highlighting current research limitations, and providing propositions and recommendations regarding future research

The impact of information technology resources on SMEs' innovation performance

This work aims to develop a research framework to examine the impact of information technology resources on the innovation performance of Saudi small-and-medium enterprises (SMEs). SMEs innovation capability influences growth and technological progress (Bruque & Moyano, 2007). However, many developing countries exhibit moderate or even low innovation performance. For instance, Saudi Arabia is ranked 54th by the Global Innovation Index (GII 2011). Innovation systems studies focus on the alignment between the interactions of innovation actors with their constantly changing environment toward better innovation performance (Etzkowitz & Leydesdorff, 2000). The dynamic capabilities of organisations have been highlighted as a crucial characteristic that helps to achieve a sustainable competitive advantage (Teece et al., 1997). The indirect impact IT resources on innovation performance represents an attractive research area (Benitez-Amado et al., 2010). Therefore, we argue that a closer look at Saudi SMEs information technology resources and their impact on the firm dynamic capabilities and innovation performance would make a significant contribution to existing knowledge. Areas such as the organisation strategies of developing countries, innovation management, dynamic capabilities, open innovation and strategic information systems are few examples of areas that might benefit from this work