The Effects of Information Technology and Service-Oriented Architectures on Joint Venture Value

Alliances represent a variety of governance contexts, and hence provide a rich empirical setting for studying the value-creation mechanisms of Information Technology (IT). We examine the influence of IT investment and flexible IT infrastructure, through Service Oriented Architecture (SOA), in the effect of alliance activity on firm performance. We find that the marginal contribution of each joint venture to intangible firm value increases with investment in IT and in SOA. We also find that the impacts of IT and SOA are greater in the case of joint ventures than in non-equity alliances. Given that the hierarchical controls built into joint ventures may be offsetting many of the transaction and coordination costs inherent in joint venture activities, our results suggest that IT and SOA, through enhancement of flexibility, are likely to be reducing the costs of reconfiguration of firm resources. We test our hypotheses using data from 375 firms that are publicly listed in the United States and that span multiple industries; these firms have collectively engaged in more than 8,000 alliances over a period of 10 years

Organizational Learning and Capabilities for Onshore and Offshore Business Process Outsourcing

This paper identifies and analyzes firm-level characteristics that facilitate onshore and offshore business process outsourcing (BPO). We use organizational learning and capabilities to develop a conceptual model. We test the conceptual model with archival data on a broad cross section of U. S. firms. Our empirical findings indicate that firms with experience in onshore information technology (IT) outsourcing and capabilities related to IT coordination applications and process codification are more likely to engage in BPO, and firms with experience in internationalization are more likely to engage in offshore BPO. We also find that IT coordination applications have a greater impact on onshore BPO than on offshore BPO, and the effect of process codification is partly mediated through IT outsourcing

A Field Study of RFID Deployment and Return Expectations

Radio Frequency Identification (RFID) technology promises to transform supply chain management. Building on previous research in information systems and supply chain management, this paper proposes a theoretical framework for RFID adoption and benefits, and tests the framework using data on U.S. firms. Our analysis suggests that there is a positive association between information technology (IT) application deployment and RFID adoption. We find that RFID implementation spending and partner mandate are associated with an expectation of early return on RFID investment, and a perceived lack of industry-wide standards is associated with an expectation of delayed return on RFID investment. These results suggest that firms with broad IT application deployment and a critical mass of RFID implementation spending are more likely to report early returns from RFID deployments. This paper extends previous research to understand the relationship between organization characteristics and adoption and expected benefits of the emerging RFID technology

How Human Resource and Information Systems Practices Amplify the Returns on Information Technology Investments

This study examines the important roles that human resources (HR) for information technology (IT) professionals and information systems (IS) practices for all workers in an organization play in shaping returns on firms’ IT investments. In particular, we consider how incentives, autonomy, and training for IT professionals can enable a firm to better leverage the value of its IT investments. We argue that well-trained, motivated, and empowered IT professionals can help firms make better strategic choices in allocating IT investments and implementing IT projects. We also demonstrate how this moderating relationship depends upon collaborative IS and autonomy-enhancing IS practices that affect other knowledge workers in the firm. We leverage archival data for 228 firms with 736 firm-year observations and document two key findings. We find (1) that empowering HR practices for IT professionals positively moderate the effect of IT investments on firm performance, and (2) that the alignment between empowering HR practices for IT professionals and firm-wide collaborative IS practices enhances the value that firms derive from IT investments. Our results suggest that the business value of IT investments is linked to the rewards and opportunities offered to IT professionals, who have a pivotal role in the effective deployment of IT in organizations

The role of GPS-enabled information in transforming operational decision making: an exploratory study

Although the impact of ICT-enabled information on firm performance has been well documented in the business value of IT literature, our understanding of how Global Positioning System (GPS) adoption can transform operational decision making and foster differential firm performance is limited. In response, we conduct an exploratory comparative case study of three transport firms that have implemented the same GPS during the same year in their operations. Our results highlight that increased use of GPS-enabled information can enhance information quality and make operational decision making more fact-based and collaborative. We also find that such transformations in operational decision making, driven by increased use of GPS-enabled information, can foster differential performance impacts. However, we warn scholars and practitioners that a firm’s information management capability (in terms of availability of quality information in decision making, software tools for connectivity and access to information, IT systems integration post-GPS adoption and adaptability of the infrastructure to emerging business needs) and organizational factors (such as top management support, project management of GPS implementation, financial support, end-user involvement, rewarding, training and employee resistance) can facilitate (or inhibit) effective use of GPS-enabled information in operational decision making, and thus moderate differential performance benefits of GPS adoption

Global delivery models: the role of talent, speed and time zones in the global outsourcing industry

Global delivery models (GDMs) are transforming the global IT and business process outsourcing industry. GDMs are a new form of client-specific investment promoting service integration with clients by combining client proximity with time-zone spread for 24/7 service operations. We investigate antecedents and contingencies of setting up GDM structures. Based on comprehensive data we show that providers are likely to establish GDM location configurations when clients value access to globally distributed talent and speed of service delivery, in particular when services are highly commoditized. Findings imply that coordination across time zones increasingly affects international operations in business-to-business and born-global industries