An empirically derived model of the role of IS networks in business process improvement initiatives

During the past two decades both business managers and academic researchers have shown considerable interest in information system (IS) networks and their effect on business processes and performance. The present study builds on this interest to examine the nature of IS networks and business process improvement initiatives (BPII) and delineate the process by which IS networks influence BPII. Conceptually, both of these variables are considered multidimensional constructs, with IS networks comprising connectivity and flexibility dimensions and BPII involving process improvement initiatives and customer focus dimensions. We develop a model that elaborates on the interrelationships among these variables along with two key contextual antecedents (management support and information intensity) and pose a series of hypotheses. We then present the results of an empirical test of the model that involved structural equation modeling using data collected via a national mail survey from executives from ‘Fortune 500’ divisions. Overall, the results of the study found mixed support for our hypotheses. While network connectivity and network flexibility were found to be significantly related to process improvement initiatives, network flexibility did not have any significant effect on customer focus. The results of the study also indicate that top management support is significantly related to both IS network dimensions, which fully mediate top management support’s influence on both BPII dimensions. Information intensity was also found to be significantly related to BPII and partially mediated by network flexibility with regard to process improvement initiatives. Implications of this study and directions for future research are also discussed.     

Information systems and occupational stress: a theoretical framework

The information systems (IS) profession is a stressful profession. However, there is little theoretical or empirical research on the effects of occupational stress on IS professionals. A major reason is because IS professionals and researchers are unaware of the consequences of occupational stress and unfamiliar with the occupational stress literature. The purpose of this paper is to propose a theoretical framework of occupational stress for IS professionals. Based on a review of the IS, psychology, and general management literature, 12 occupational stress models are identified. These stress models are analyzed along the two dimensions of focus and theoretical foundation. The analysis shows that most of the occupational stress models consider stress to be the consequence of the interaction between an environmental stimulus and the idiosyncratic response of the individual. Further analysis of these models suggests that nine key points are critical in developing a theoretical framework of occupational stress for IS professionals. A mapping of how the existing stress models incorporate the nine key points is also presented. The findings of this paper can provide a theoretical basis for further research on the occupational stress of IS professionals. Finally, an agenda for further research into this issue is presented.     

The Relationship Between Information System Planning Sophistication and Information System Success: An Empirical Assessment*

Literature on information systems (IS) planning implicitly assumes that a sophisticated IS planning process leads to greater IS success. This paper questions the exclusive reliance on this traditional belief. Instead, because IS planning requires significant organizational resources, prior IS success is essential to convince top management of the importance of IS planning sophistication. Therefore, IS success may influence IS planning sophistication. Several theoretical arguments are advanced in support of this explanation. Data from a survey of 236 academic institutions are used to empirically assess the two alternative directions of the relationship between IS planning sophistication and IS success. Four structural models including the alternative causal directions are evaluated. Two of these models are supported. Together, they imply that for a high level of IS planning sophistication, either the previous ISs should have been successful or the organization should possess advanced information technology capabilities. Thus, empirical results suggest that the explanation presented here (i.e., IS success facilitates IS planning sophistication) provides an equally good alternative to the more traditional explanation (i.e., IS planning sophistication facilitates IS success).     

A process-oriented perspective of IS success: Examining the impact of IS on operational cost

Effective measurement of information system (IS) success continues to be a top concern for both practitioners and researchers. Labeled the “productivity paradox”, previous attempts to quantify the benefits of IS have often resulted in inconclusive or inconsistent results. The present study contributes to IS success research through the development and empirical testing of a process-oriented model of IS success. Using an operational perspective and combining primary and secondary measures, this study examines the influence of lower-level intangible IS and information technology (IT) benefits on higher-level financial measures. Additionally, we introduce IS plan quality as an antecedent to the model's input variables. Primary survey data from CIOs of primarily Fortune 2000 size firms are combined with secondary data, total operational cost, from Compustat to facilitate the examination of the IS benefits. This study also addresses shortcomings cited in other studies that might have contributed to the productivity paradox by including control variables in the model, defining a research perspective—the operational success perspective—and clearly articulating the level of analysis as the organizational level. The results supported a process-oriented view of the benefits from IS and showed how the effects of IS along a path can lead to better organizational performance, in this case, lower overall costs. These results are discussed and future research implications are presented.     

The impact of related party transactions on earnings management: some insights from the Italian context

Related party transactions have become a key issue as a result of recent financial scandals. This study examines whether firms use related party transactions for earnings management, and then, whether they try to minimize detection through the format of related party transactions disclosure. Firstly, we analyze the association between related party transactions structure (types and parties involved) and the probability of reporting small earnings increase. Related party transactions may have significant impact on, and implications for, earnings management. According to the agency theory, related party transactions are used opportunistically, while the efficient transaction hypothesis argues that related party transactions meet the economic needs of the business. We next investigate the association between the probability of reporting small earnings increases through related party transactions and disclosure quality. Disclosure quality should be studied in relation to impression management and investor attention; this approach takes account of the idea that earnings management behavior may influence the quality of disclosure as a possible way of lowering conflict of interest. In line with the agency theory, our findings show that revenue related party transactions are more likely to be used to manage earnings than other types of transaction; related party transactions with ultimate parents are associated with lower probability of reporting small earnings increases compared to operations with other related parties. Lastly, our results confirm that the decision to engage in earnings management is related to lower disclosure quality.     

How Software Project Risk Affects Project Performance: An Investigation of the Dimensions of Risk and an Exploratory Model*

To reduce the high failure rate of software projects, managers need better tools to assess and manage software project risk. In order to create such tools, however, information systems researchers must first develop a better understanding of the dimensions of software project risk and how they can affect project performance. Progress in this area has been hindered by: (1) a lack of validated instruments for measuring software project risk that tap into the dimensions of risk that are seen as important by software project managers, and (2) a lack of theory to explain the linkages between various dimensions of software project risk and project performance. In this study, six dimensions of software project risk were identified and reliable and valid measures were developed for each. Guided by sociotechnical systems theory, an exploratory model was developed and tested. The results show that social subsystem risk influences technical subsystem risk, which, in turn, influences the level of project management risk, and ultimately, project performance. The implications of these findings for research and practice are discussed.     

An Exploratory Analysis of the Value of the Skills of IT Personnel: Their Relationship to IS Infrastructure and Competitive Advantage

Determining and assessing the requisite skills of information technology (IT) personnel have become critical as the value of IT has risen in modern organizations. In addition to technical skills traditionally expected of IT personnel, softer skills like managerial, business, and interpersonal skills have been increasingly cited in previous studies as mandatory for these employees. This paper uses a typology of IT personnel skills—technology management skills, business functional skills, interpersonal skills, and technical skills—and investigates their relationships to two information systems (IS) success variables, IS infrastructure flexibility and the competitive advantage provided by IS. The study investigates these relationships using the perceptions of chief information officers (CIOs) from mostly Fortune 2000 companies. The contributions of this study are: IT personnel skills do affect IS success, technical skills are viewed as the most important skill set in affecting IS infrastructure flexibility and competitive advantage, and modularity is viewed as more valuable to competitive advantage than integration. Several explanations are offered for the lack of positive relationships between the softer IT personnel skills and the dimensions of IS success used in this study.     

The Value to the Customer of RFID in Service Applications*

This article examines how customer value may be affected by deploying radio frequency identification (RFID) technologies within service environments. Business articles promote operational cost savings and improved inventory management as key benefits of deploying RFID. In response, service firms are using RFID to reengineer service transactions and customer touchpoints. Customers may view these RFID applications to offer both benefits and drawbacks. This article demonstrates that individuals will recognize far more value from RFID service applications than just cost savings and inventory availability. The article analyzes qualitative survey responses on the value gained from RFID to identify a broad list of value objectives—benefits and drawbacks—associated with RFID service applications. The article contributes to academic literature by providing salient value dimensions for return on investment models of service RFID applications and for future empirical analyses of means‐ends and value‐profit chain models. Managers can use the list of dimensions to develop rich business cases for evaluating the benefits and costs from enhancing service operations with RFID. The identified drawbacks also provide managers with a resource for understanding potential risks of RFID applications.     

Modeling IS Planning Benefits Using ACE

This paper addresses the dearth of research on the determinants of IS planning benefits. Data were collected using a questionnaire survey of top IS executives from 450 companies in Singapore. Of the 103 responses (representing a response rate of 23%), 65 companies undertook IS planning. To test the hypothesis that the determinant-benefit relationships are likely to be nonlinear, the Alternating Conditional Expectations (ACE) algorithm was used. This appears to be the first use of ACE in IS planning research. IS sophistication, communications culture, technology forecasting, top management support, and firm size were found to be nonlinearly related to IS planning benefits (e.g., improved competitiveness, operations, and resource management). For example, IS sophistication affects improved competitiveness positively, and improved resource management negatively. It seems that IS sophistication is directed more at improving competitiveness, even though this may result in less efficient resource management due to bureaucratic procedures. However, at higher levels of IS sophistication, competitiveness stagnates and may even decrease, possibly due to bureaucratic bottlenecks. Implications of our results are discussed.     

The Econometrics of Ultra‐high‐frequency Data

Ultra‐high‐frequency data is defined to be a full record of transactions and their associated characteristics. The transaction arrival times and accompanying measures can be analyzed as marked point processes. The ACD point process developed by Engle and Russell (1998) is applied to IBM transactions arrival times to develop semiparametric hazard estimates and conditional intensities. Combining these intensities with a GARCH model of prices produces ultra‐high‐frequency measures of volatility. Both returns and variances are found to be negatively influenced by long durations as suggested by asymmetric information models of market micro‐structure.     

Quality management, environmental management and firm performance: A review of empirical studies and issues of integration

Quality management (QM) and environmental management (EM) are two business practices that may affect firm performance. These practices are being increasingly introduced into firms, which often use them jointly owing to their similarities. As a result of these similarities, their integration has become a popular topic of research and practice. In the field of integration, the highest level of integration may be achieved by means of a single, full QM–EM system (QEM) in which QM and EM lose their independence. It is therefore desirable to identify dimensions from which to assess these management practices and their effects on performance. The aim of this paper is to carry out a literature review in order to propose and analyse dimensions for QM, EM, QEM and firm performance, as well as models of cause–effect relationships between these variables. The topics reviewed are the following: (1) the QM and EM dimensions; (2) the empirical studies about QM–performance and EM–performance links; and (3) issues of integration. The review suggests that the large body of QM research may inform EM and QEM. This is so because research on the QM side is more advanced and developed than that on the EM side.     

Capability,Quality, and Performance of Offshore IS Vendors: A Theoretical Framework and Empirical Investigation

Information systems (IS) offshoring has become a widespread practice and a strategic sourcing choice for many firms. While much has been written by researchers about the factors that lead to successful offshoring arrangements from the client's viewpoint, the vendor's perspective has been largely scarce. The vendor perspective is equally important as offshore IS vendors need to make important decisions in terms of delivering operational and strategic performance and aligning their resources and processes in order to meet or exceed targeted outcomes. In this article, we propose and test a three‐level capability–quality–performance (CQP) theoretical framework to understand vendor outcomes and their antecedents. The first level of the framework represents three vendor capabilities: relationship management, contract management, and information technology management. The second level has three mediating variables representing process quality: partnership, service, and deliverable quality. The third level has three dependent variables representing vendor outcomes: operational performance, strategic performance, and satisfaction. The model was tested with 188 vendor firms from India and China, the two most popular destinations for IS offshoring. Results support the CQP framework; vendor capabilities are significant predictors of intermediate quality measures, which in turn affect vendor outcomes. Implications of the study findings to both theory development and IS offshore vendor strategic decision making are discussed.     

Swiftness and Intensity of Administrative Innovation Adoption: An Empirical Study of TQM in Information Systems

Considerable attention has been directed toward developing a more complete understanding of innovation adoption by Information Systems (IS) departments. Much of this research has focused on the adoption of technological innovations, and limited research has focused on the adoption of administrative innovations. This paper focuses on an administrative innovation that is increasingly becoming popular among IS departments, namely Total Quality Management (TQM) in systems development. A synthesis of the IS innovation and TQM literatures was conducted to identify environmental, organizational, and task‐related factors that should relate to both the swiftness and the intensity of TQM adoption. The relationships between the identified variables and TQM adoption were examined using data collected from 123 IS departments in Fortune 1000 firms and large government agencies in the U.S. The results indicate that TQM adoption in systems development is influenced by the host organization's quality orientation and factors internal to the IS department including IS management support for quality, the presence of a separate quality assurance function, and the structural complexity of the IS department. Implications of this study for theory, future research, and practice are discussed.     

The impact of national culture on negotiating behaviors across borders

Recent declines in American competitiveness and the increasing globalization of American business underscore the importance of one's culturally-based negotiating ability in international business transactions. This paper examines the impact of cultural dimensions on negotiating effectiveness on three levels: the role of a single dimension of culture, the interactive effects between multiple dimensions of culture, and the degree of cultural compatibility between negotiating parties. Two existing models of negotiation are integrated, outlining the critical importance of culture in each stage of effective international business negotiations. The integrated model is then applied to the cultures of eleven nations. Propositions and suggestions for future research are provided.An earlier version of this paper was presented at the Academy of International Business Conference. The authors wish to thank two anonymous AIB reviewers and session participants at the AIB meeting for their constructive comments concerning the paper.     

A path analytic study of the effect of top management support for information systems performance

Information systems (IS) have become a vital component of an organization's competitive practices. Organizations have tried to differentiate themselves based on their use and adaptation of new information technology. Top management support (TMS) is a significant factor in influencing the effectiveness of the IS function in an organization. The literature has conceptually supported this notion, but empirical evidence has been sparse. This paper develops a two-tiered framework for studying the relationship between top management support, the IS function, and IS performance. This conceptual model was empirically tested using structural equation modeling based on data collected through a survey instrument. The results support the direct and indirect relationships depicted in the model between top management support and IS performance.     

A Psychometric Evaluation of the Expectations,Perceptions, and Difference‐Scores Generated by the IS‐Adapted SERVQUAL Instrument

This article describes the results of a study assessing the psychometric properties of the expectations and perceptions‐of‐performance instruments and the difference‐score data contained within the information systems (IS)‐Adapted SERVQUAL measurement paradigm. The central claim of this study is: In order for rational inferences to be made about service expectations, service performance perceptions, or the gap between them, each of the two instruments must exhibit reasonable psychometric properties in isolation before difference‐scores are taken. Analysis of data from a field study (N= 401) through structural equation modeling (SEM) techniques produces empirical evidence indicating that both of the instruments exhibit low psychometric quality and yet the difference‐scores exhibit “psychometric inflation.” That is, the quality of the difference‐score data is in many ways apparently superior to the raw data from both instruments. Negative conclusions are reached as to the efficacy of either individual instrument and, thus, the full IS‐Adapted SERVQUAL paradigm. Questions and prospects for further research in this important area of service quality measurement/management are presented, and a potentially rich future for IS service quality is outlined. It is strongly suggested that future IS service quality research be based on development of a new instrument, grounded in attributes endemic to IS services and developed using the best available development techniques.     

The effects of new dimensions of psychological job demands and job control on active learning and occupational health

Recent changes in job content may have led to changes in job demands and control, and earlier operationalizations of the demand concept may be too general (MT). The aim of this paper is to show how new dimensions of psychological job demands are related to two sets of outcome variables, employee health and active learning, and how these relationships are modified or interact with social support and types of job control. The study was carried out as a survey among employees of 13 electric companies in Norway, N=2435. Lisrel was used to assess the fit of the proposed models. Compared to the traditional demands control model, an extended version used in this study increased the explained variance on an average by 4% on various occupational health variables. It was found that various dimensions of demands were differentially related to the outcome variables. Skill discretion uniformly reduced the effect of the demands: for groups low in skill discretion there was a stronger relationship between demands and outcomes than for groups high in skill discretion. The interaction pattern for the remaining control and support variables was however more complicated and warrants further study. The practical implications are that employers should carefully consider the quality of work. Special attention should be given to the quantitative demands of the jobs, since there seems to be few moderators for the relationship between those demands and job stress and subjective health complaints.     

Influence of Safety Measures on the Risks of Transporting Dangerous Goods Through Road Tunnels

Quantitative risk assessment (QRA) models are used to estimate the risks of transporting dangerous goods and to assess the merits of introducing alternative risk reduction measures for different transportation scenarios and assumptions. A comprehensive QRA model recently was developed in Europe for application to road tunnels. This model can assess the merits of a limited number of "native safety measures." In this article, we introduce a procedure for extending its scope to include the treatment of a number of important "nonnative safety measures" of interest to tunnel operators and decisionmakers. Nonnative safety measures were not included in the original model specification. The suggested procedure makes use of expert judgment and Monte Carlo simulation methods to model uncertainty in the revised risk estimates. The results of a case study application are presented that involve the risks of transporting a given volume of flammable liquid through a 10-km road tunnel.     

Risk Perception Among Smokers: A Qualitative Study

The aim of this qualitative study is to identify the dimensions people used to assess the risk of smoking and then compare them with those used by health professionals in primary healthcare. Five discussion groups were conducted. The field work was carried out in Barcelona (Spain), from February 2005 to January 2006. Data were analyzed following a semantic‐thematic categorical content analysis (ACC‐ts). Results showed that people tend to employ stereotypical discourses when evaluating the risk of smoking. Similarly, they reassess the risk in the context of their life experience and incorporate new nuances to the arguments sustaining their behavior. Once this reassessment takes place, the decision to continue smoking emerges, and smokers come up with additional arguments justifying their habit (i.e., age, benefits related to costs). Professionals are aware of this process and its multidimensional nature. Nevertheless, their discourse loses this multidimensional feature when discussing the strategies they use at smoking cessation interventions. This qualitative study increases the understanding of various meanings that people attribute to their life experience. These assumptions may be useful for developing health practices that are closer to people. As a practical utility of these results, it would be interesting to apply a preliminary assessment of the different meanings that people attribute to smoking from their life context in risk communication.