Information Technology, Production Process Outsourcing, and Manufacturing Plant Performance

What is the role of information technology (IT) in enabling the outsourcing of manufacturing plant production processes? Do plant strategies influence production outsourcing? Does production process outsourcing influence plant performance? This research addresses these questions by investigating the role of IT and plant strategies as antecedents of production outsourcing, and evaluating the impact of production outsourcing and IT investments on plant cost and quality. We develop a theoretical framework for the antecedents and performance outcomes of production outsourcing at the plant level. We validate this theoretical framework using cross-sectional survey data from U.S. manufacturing plants. Our analysis suggests that plants with greater IT investments are more likely to outsource their production processes, and that IT investments and production outsourcing are associated with lower plant cost of goods sold and higher product quality improvement. Our research provides an integrated model for studying the effects of IT and production outsourcing on plant performance

Using Accounting Metrics As Performance Measures To Assess The Impact Of Information Technology Outsourcing On Manufacturing And Service Firms

This study focuses on the information technology (IT) outsourcing decision and asks whether reported financial statement data can measure short-term financial effects of the IT outsourcing decision and thus add to the literature on the benefits of outsourcing. In this study we used accounting metrics derived from archival financial data to assess the impact of IT outsourcing on firms’ performance measures. In the sample of 79 firms from 1986 to 2009, there were 45 firms in the manufacturing sector and 34 firms in the service sector. The comparative study between manufacturing and service sectors will help identify where the higher potential of outsourcing impact lies. Firms’ performance is measured over a two-year period, one year before and one year after outsourcing decisions were made. For performance measures, we used cost efficiency, productivity, profitability, growth, cash management, and market ratio metrics. Using accounting metrics we show that IT outsourcing has a favorable short-term impact on manufacturing firms’ cost efficiency, productivity, and cash management. At the same time outsourcing the IT function has little favorable impact on service firms’ short-term performance measures

Modeling IT Value based on Meta-Analysis

Over the last two decades, research about IT value has been done. The main purpose of IT values research is to determine how IT investment gives impact and value to organization performance. Because of vital role and function of IT, the organization required to understand how IT could create business value. Therefore, an understanding of IT value is needed. Systematic literature review in meta-analysis is required to determine the relationship between IT resources, organization capabilities, organization core competencies, and organization performances. The research was conducted on 53 publications which generate the classification matrix components that have an impact on organization performance. Hypothesis testing results that organization has the best performance on financial, efficiency, and other performance through external capability and core competence. So, indirect effect model is better than direct effect model in explaining IT value

Resource-based View in Information Systems Research: A Meta-Analysis

Resource-based view is the theory that has been applied to analyze the impact of informa-tion technology on business performance. Its main argument is that competitive advan-tages are determined by the unique valuable resources controlled by an organization. IT as a valuable asset will have positive effect on firm performance. However, previous re-search on the issue is inconsistent. This paper reports a meta analysis of 42 papers pub-lished in major journals in information systems. Our findings indicate that the capability mediated model is better than the direct effect model and the major impact of IT is on ef-ficiency indicators

The Business Value of Social Network Technologies: A Framework for Identifying Opportunities for Business Value and an Emerging Research Program

Although social network technologies have been the focus of many articles in the popular and business press, businesses remain unclear about their value. We use theory and data gathered from IT leaders to develop an initial model assessing the value of social network technologies in the business environment. Insights are given into when different features should be used to enhance existing business processes and to provide business value

A Framework for the Impact of IT on Organizational Performance

Purpose – Despite the constant stream of research investigating information technology (IT) business value, IT capabilities, and competitive advantage, researchers are calling for a more coherent understanding of the firm-level impacts of IT, and how those firm-level impacts can be measured. The purpose of this study is to investigate the multitude of organization-level studies of the impact of IT. Design/methodology/approach – Meta-analysis of IS literature from 2001-2009. Findings – The findings are synthesized into an overarching framework of the impact of IT at the organization level. The framework categorizes measures of the impact of IT into productivity, profitability, and intangible benefits, while the antecedents of IT impact are categorized into IT resources, IT capabilities, IT/business alignment and external factors. Originality/value – The research framework proposed provides a comprehensive snapshot of IS studies on organizational performance

Leveraging IT for Business Innovation: Does the Role of the CIO Matter?

The evolving role of Information Technology (IT) in business innovation places increasing emphasis on the role of the Chief Information Officer (CIO). Yet, the role of the CIO in business innovation is understudied in the extant literature. Drawing on organizational theory of boundary spanning leadership, we posit that the CIO’s cross-functional role pertaining to entities and functions outside the IT organization help explain the firm’s propensity for IT-enabled business innovation. Our large-sample empirical analysis of U.S. firms largely supports our theoretical propositions. We empirically find that IT-enabled business innovation is more likely when the CIO reports to the Chief Executive Officer, has more interactions with the firm’s customers and is more involved in new product development. This study contributes to our understanding of the role of the CIO in IT-enabled business innovation and provides implications for practice

ANALISIS BIAYA-MANFAAT DAN APLIKASI MODEL PENERIMAAN TEKNOLOGI PADA KEPUTUSAN OUTSOURCING TI

Information technology outsourcing continues to advance. Outsourcing can be success if it’s done for the right reason, follow due process, and it pursued with realistic expectation and a clear understanding of where the benefits are likely to emerge. Although interest to outsourcing arise, but many companies have no a clear understanding about the consequency. This article try to give an overview about cost, risk and benefit of Information Technology outsourcin

Cost reduction and business strategy matters to human resource outsourcing? a validation by HR experts from Government Link Companies (GLC’s).

The phenomenon of outsourcing has spawned a rich body scholarly reseach in sveral decades. However, the answer to one of the pertinent question has remained elusive: Does cost reduction and business strategy really matters to the human resource outsourcing impacts. Looking at this question it is important for the organization to embark on the practice of human resource outsourcing to save operating cost and remain competitive. Therefore, the objective of this study is to investigate the effects of cost reduction and business starategy towards human resource outsourcing impacts. Both quantitative and qualitative methods were employed and the top management in Malaysian Government Link Companies (GLC’) is the unit of analysis. The findings revelaved that, both variables are significant statistically and non statically i.e from the experts opinion. Finally, the study also provides useful directions for future research, HR Practitioners and policy maker particularly in managing and organizing human reseouce matters