Information Leverage Theory: A Process Level Approach to Understanding the IT-Performance Linkage

This paper proposes a theory of information leverage to explain the enabling role of IT in enhancing processperformancewithintheinformationprocessingparadigm. Thebasiccontentionisthatameasure of IT value can best be ascertained at the site of its application - the organizational process. A set of eight propositions provides the theoretical framework within which the design and use of IT and its impact on perfonnance may be studied. The central construct of the theory is information use rather than technology use. Information may be leveraged in feedback and feedforward modes and the specific information leverage pattern in the process is contingent on the level of state and motivational uncertainties faced by the process. The paper views IT as a lever of infonnation and the extent of its impact on performance is the extent of the fit between the designhse of IT and the information leverage needs. The bottom line is that the appropriateness of the design and use of IT determines process perfonna~icewhich in turn may affect organizational perfor- mance

Content Analyzing Annual Reports for Variation in Strategicness of IT Across Industries and Over Time

Although a number frameworks of strategic roles of IT have been proposed, empirical validation of these frameworks is negligible (Earl, 1987). Furthermore, many authors have argued for variation in strategic roles of IT across industries based on \u27information intensity\u27 (Porter and Millar, 1985) and \u27utility of IT\u27 (Johnston and Carrico, 1988). Similarly, others have argued for the evolution of strategic role of IT over time (Gibson and Nolan, 1974). However, except for a few exceptions (Jarvenpaa and Ives, 1990, Drury, 1983) empirical validations of these claims are sparse. The objective of this study is to provide some much needed empirical research to study the IS-Strategy interface by validating the above claims. We shall do this by developing a framework for the strategic role of IT and use it as the basis for content analyzing CEO\u27s statements in annual reports