Ginzberg, Michael

Nemeslaki, Andras

Yang, Hee-Dong

English

AIS Electronic Library (AISeL)

Association for Information SystemsAIS Electronic Library (AISeL)ICIS 1997 Proceedings International Conference on Information Systems(ICIS)December 1997Information Systems Implementation in Hungary:Four Boundaries to IS AdoptionAndras NemeslakiInternational Management CenterHee-Dong YangCase Western Reserve UniversityMichael GinzbergCase Western Reserve UniversityFollow this and additional works at: http://aisel.aisnet.org/icis1997This material is brought to you by the International Conference on Information Systems (ICIS) at AIS Electronic Library (AISeL). It has been acceptedfor inclusion in ICIS 1997 Proceedings by an authorized administrator of AIS Electronic Library (AISeL). For more information, please contactelibrary@aisnet.org.Recommended CitationNemeslaki, Andras; Yang, Hee-Dong; and Ginzberg, Michael, "Information Systems Implementation in Hungary: Four Boundaries toIS Adoption" (1997). ICIS 1997 Proceedings. 55.http://aisel.aisnet.org/icis1997/55494INFORMATION SYSTEMS IMPLEMENTATION IN HUNGARY:FOUR BOUNDARIES TO IS ADOPTIONAndras NemeslakiInternational Management CenterBudapest, HungaryHee-Dong YangMichael J. GinzbergWeatherhead School of ManagementCase Western Reserve UniversityInformation systems activity by organizations in the emerging market economies of Central and Eastern Europe(CEE) appears to be experiencing limited success.  Companies ranging from the residual state-owned enterprises tonewly established divisions of Western multinational companies are finding it difficult to put new informationsystems into effective use.Most often, the reason suggested for the lack of IS implementation success in CEE organizations is the lack of basicinfrastructure.  Observations of a number of companies, however, suggest that other more fundamental problemsoften prevail.  These organizations lack the capacity to absorb and effectively integrate new information systems andtechnologies.  The lack of infrastructure represents the most visible, but likely not the most significant, challengefacing IS adoption in CEE.This paper reports the results of initial case studies of IS implementation efforts in 13 Hungarian organizations afterthe collapse of the centrally planned economy in 1989.  The cases focus on two extreme types of organizations:indigenous Hungarian state-owned companies (SOC) and divisions of Western-owned multinationals (MNC)operating in Hungary.Figure 1 illustrates four boundaries to IS adoption emerging from these case studies.  Recent literature exploring ISadoption in Western (primarily US) organizations has focused on boundary 1, the alignment between IT and linemanagement (e.g., Henderson and Venkatraman 1993).  One way to conceptualize the fit at that boundary has beenin terms of absorptive capacity (Boynton et al. 1994).  Boundary 4, the alignment between headquarters anddivisional management has also been recognized as important in the context of multinational corporations (e.g., Ivesand Jarvenpaa 1991; Jarvenpaa and Ives 1993).The case studies suggest that for organizations operating in transitional economies, two other boundaries may beequally important.  Boundary 2 focuses on the fit between the organization and the other institutions in the localmarket environment.  Is there a common understanding of the economic and operational ground rules between theorganization and its suppliers, competitors, customers, regulators, etc.?  Finally, boundary 3 lies within the firmbetween management and employees.  As organizations complete the transition to a market orientation, participantsneed to develop a new mind set.  Often, management makes this transition before lower level employees, creatingthe potential for a communication gap.A gap at any one of these four boundaries can result in pathological patterns of information usage which threaten thesuccessful implementation of IS.  Each of these boundaries, however, poses a different nature of threat.  These initialcases suggest that state-owned companies and multinational companies are likely to experience trouble at differentResearch in Progress495HeadquartersManagementEmployeesISInfrastructureMarket, competitor, counterpart, suppliers,etc.Boundary 4  The issueis the alignment ofglobal & local strategy Boundary 3  The issue is the alignmentof IS and organizational communica-tion genresBoundary 2  The issue is the fitof business strategy & processesto the local environmentBoundary 1  The issue is thealignment of IT & managementFigure 1.  Four Boundaries for IS Adoptionboundaries.  For SOCs, the problems are most likely at boundaries 1 and 2, while for MNCs, boundaries 3 and 4 posethe greatest threats.  Future work in this research project will test hypotheses developed from these case studies inadditional Hungarian organizations as well as organizations in other CEE countries.REFERENCESBoynton, A. C.; Zmud, R. W.; and Jacobs, G. C.  “The Influence of IT Management Practice on IT Use in LargeOrganizations,” MIS Quarterly (18:3), September 1994, pp. 299-318.Henderson, J. C., and Venkatraman, N.  “Strategic Alignment:  Leveraging Information Technology for TransformingOrganizations,” IBM Systems Journal  (32:1), 1993, pp. 4-16.Ives, B., and Jarvenpaa, S. L.  “Applications of Global Information Technology:  Key Issues for Management,” MISQuarterly (15:1), January 1991, pp. 33-49.Jarvenpaa, S. L., and Ives, B.  “Organizing for Global Competition:  The Fit of Information Technology,” DecisionSciences (24:3), May-June 1993, pp. 547-580.

Information Systems Implementation in Hungary: Four Boundaries to IS Adoption

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Information Systems Implementation in Hungary: Four Boundaries to IS Adoption

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