ON THE EMERGENCE OF SHADOW IT - A TRANSACTION COST-BASED APPROACH

Information Technology (IT) used for business processes is not only provided by the organization´s IT department. Business departments and users autonomously implement IT solutions, which are not embedded in the organizational IT service management. This increasingly occurring phenomenon is called Shadow IT. The various opportunities and risks of Shadow IT challenge organizations and call for approaches to manage the phenomenon. An initial point to achieve measurable indications for the management is to explain why Shadow IT emerges. Therefore, this paper explores the business decision to implement Shadow IT. Based on existing research we derive that Shadow IT is created after a make-or-buy decision, which is substantiated in the Transaction Cost Theory. We deploy a triangulation approach using the methods expert interviews and multiple-case study to investigate Shadow IT emergence. Our findings identify prohibitive transaction costs in the exchange relation between business and IT departments, influnced by misalignment, as the main explanation. We conclude that the principles of Transaction Cost Theory may be applied to develop governance structures for managing Shadow IT. This strengthens the link between IT Governance and Business IT Alignment and expands the understanding of business integration within the IT domains of an organization

Toward an Ontology of Workarounds: A Literature Review on Existing Concepts

While workarounds are studied frequently in information systems research, a coherent and interrelated structure to organize the knowledge of the field is still missing. In this study, we provide a first step towards an ontology of workarounds in order to enable researchers to study the relationships among the core concepts. By identifying existing literature, we discover three gaps in workaround research: (1) lack of conceptual consensus, (2) fragmentation and (3) static perspective. To advance theory, we provide an overview of different types of workarounds that are frequently used in literature. Based on these findings we derive core concepts of workarounds that are used in literature and provide an ontology of workarounds

Theory of Workarounds

Although mentioned frequently in the organization, management, public administration, and technology literatures, workarounds are understudied and undertheorized. This article provides an integrated theory of workarounds that describes how and why workarounds are created. The theory covers most types of workarounds and most situations in which workarounds occur in operational systems. This theory is based on a broad but useful definition of workaround that clarifies the preconditions for the occurrence of a workaround. The literature review is organized around a diagram that combines the five “voices” in the literature of workarounds. That diagram is modeled after the diagram summarizing Orton and Weick’s [1990] loose coupling theory, which identified and combined five similar voices in the literature about loose coupling. Building on that basis, the theory of workarounds is a process theory driven by the interaction of key factors that determine whether possible workarounds are considered and how they are executed. This theory is useful for classifying workarounds and analyzing how they occur, for understanding compliance and noncompliance to methods and management mandates, for incorporating consideration of possible workarounds into systems analysis and design, and for studying how workarounds and other adaptations sometimes lead to larger planned changes in systems

Accounting decoupled : A case study of accounting regime change in a Malaysian company

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Digital Options Theory for IT Capability Investment

While research has shown that investments in IT capability may translate into improved firm performance, how and why they do is still a source of debate. Drawing on financial options thinking, recent research suggests that managers can support appropriate investment decisions by examining digital options. However, current research has not effectively translated the financial options construct into the IT domain, which makes it difficult to rigorously examine digital options. To address this void, we revisit general options theory and review current notions of digital options. To support understanding, we extend current theorizing by offering a rigorous conceptual foundation that defines the digital option lifecycle and relationships to neighboring constructs. To support practice, we present principles for examining digital options for a specific business process. To illustrate the detailed workings of the theory, we examine a production planning process in the dairy industry to arrive at a set of desirable and feasible IT capability investments. Our proposed theory supports managerial practice by offering a rigorous and actionable foundation for digital options thinking. It also sets an agenda for academic research by articulating theory-based constructs and principles that are subject to further empirical and theoretical investigation

Shadow IT and computer-mediated collaboration : developing a framework based on social presence theory

The use of unauthorized technologies in the workplace, called shadow IT (SIT), is increasing within organizations. Previous research identified that Shadow technologies are often collaborative systems used by employees to communicate and share content with colleagues, clients, or external partners. Therefore, we aim to develop a framework for the influence of shadow IT usage on computer-mediated collaboration based on Social Presence Theory. We conducted a literature review that resulted in a framework and the development of research propositions. The literature suggests that there is a positive influence of shadow IT usage on employee collaboration and communications. This paper presents theoretical and practical contributions. Analyzing shadow IT and collaboration through a theoretical lens makes progress on the discussion about the consequences of these unauthorized technologies for individuals and organizations. It is important for organizations to comprehend these impacts, such as on collaboration, which, in turn, can facilitate improvements in employee productivity.A utilização de tecnologias não autorizadas no local de trabalho, chamadas de Shadow IT (SIT), está aumentando nas organizações. Pesquisas anteriores identificam que tecnologias Shadow são frequentemente sistemas colaborativos utilizados pelos funcionários para se comunicar e compartilhar conteúdo com colegas de trabalho, clientes ou parceiros externos. O objetivo deste trabalho é desenvolver um framework, à luz da Teoria da Presença Social, de como o uso de shadow IT pode influenciar a colaboração mediada pela tecnologia. Para tanto, foi realizada uma revisão de literatura, culminando no desenvolvimento de um framework e em proposições de pesquisa. A literatura sugere que há uma influência positiva do uso de shadow IT na colaboração dos funcionários. Este trabalho traz contribuições teóricas e práticas. A análise da relação Shadow IT e colaboração a partir de uma lente teórica corrobora para a discussão dos impactos destas tecnologias não autorizadas. Para as organizações, é importante conhecer estes impactos, como por exemplo na colaboração, o que, por sua vez, pode viabilizar melhorias na produtividade dos funcionários

Knowledge-Supported Design Thinking about Systems in Organizations: An Application of Work System Theory

This paper explains a type of knowledge-supported design thinking related to systems in organizations. It shows how work system theory (WST) provides the basis for the work system method (WSM), various versions of which have been used by many hundreds of MBA and Executive MBA students. Design thinking occurs throughout WSM and is especially prominent at the point where WST/WSM users apply their analysis and develop recommendations for improving an existing work system or creating a new work system. Knowledge support for that design thinking has been provided through the knowledge built into WSM, and can be provided in a more complete form through extensions of WST/WSM that include a series of design spaces based on knowledge about work systems and also a work system metamodel that expands on ideas in the core of WST. In contrast to systems analysis and design methods for IT professionals, this approach to design thinking for systems in organizations is equally applicable regardless of whether IT plays an important role

What drives the end user to build a feral information system?

A Feral Information Systems (FIS) is any technological artefact (e.g. spreadsheets) that end users employ instead of the mandated Enterprise System (ES). ES proponents suggest that the installation of an ES will boost productivity. However, Production Possibility Frontier theory provides insights as to why the introduction of an ES may instead suppress an end user\u27s productivity. Structuration Theory offers insights that explain how certain end users may have access to powerful resources. Rather than submitting to the ES, the end user can employ FIS to block or circumvent aspects of the ES. Further, the concept of life chances helps explain why individuals may or may not develop the core skills required to construct an alternate to the ES, the FIS. In relation to the ES usage, an end user may adopt one of four Modes of Operation, namely: Submit, Dismiss, Hidden, or Defiant.<br /

Cultural change through the implementation of an enterprise system: a UK university case study

Purpose: Organisations spend a lot of money, time and resources on Enterprise System (ES) implementation and often they do not realise the expected benefits from these complex systems. There is a gap in the literature in providing sufficient insight into the implementation process or how an ES might influence or contribute to a culture change. The aim of this article is to address the gap in the ES literature around culture by exploring the implementation that was undertaken within a large UK university. Design/methodology/approach: This paper contributes to the Higher Education (HE) and enterprise systems literature through an in-depth study of an enterprise system, SITS, implementation within a university in the UK. The study was undertaken over a three year period where one of the authors was embedded within the organisation. Findings: Using a cultural analysis framework the extensive rich data was analysed and the outcomes indicate that SITS has had a huge influence on the culture of the university; the technology’s rigid structure has imposed many changes that had not been anticipated. Originality/value: ES have recently emerged in the higher education sector where they are intended to support the management of student data and provide strategic management information. Although there are many studies which have explored important aspects of the implementation of enterprise systems, one area that appears to have been under-researched is how these systems are implicated in culture change within organisations. The results of this study will enable managers as well as IT specialists to gain rich insights into an ES implementation in the HE sector and to use this knowledge for future implementations

Meta-Potentiation: Neuro-Astroglial Interactions Supporting Perceptual Consciousness

Conscious perceptual processing involves the sequential activation of cortical networks at several brain locations, and the onset of oscillatory synchrony affecting the same neuronal population. How do the earlier activated circuits sustain their excitation to synchronize with the later ones? We call such a sustaining process &#x22;meta-potentiation&#x22;, and propose that it depends on neuro-astroglial interactions. In our proposed model, attentional cholinergic and stimulus-related glutamatergic inputs to astroglia elicit the release of astroglial glutamate to bind with neuronal NMDA receptors containing the NR2B subunit. Once calcium channels are open, slow inward currents activate the CaM/CaMKII complex to phosphorylate AMPA receptors in a population of neurons connected with the astrocyte, thus amplifying the local excitatory pattern to participate in a larger synchronized assembly that supports consciousness