An Empirical Test of the Strategic-Grid Model of Information Systems Planning*

Contingency models of information systems planning predict that no single planning approach will suit all organizations' needs. Little empirical research has been undertaken, however, to evaluate this prediction. Accordingly, we used McFarlan, McKenney, and Pyburn's (1983) strategic-grid model to study the information systems planning problems encountered by 49 governmental agencies. Twenty-seven agencies were required to follow a planning approach best suited to organizations that had a high level of dependence on both their existing and proposed systems. We predicted that agencies not having these characteristics would encounter the most problems with the approach. The remaining 22 agencies could choose their own planning approach. We studied this latter group to determine whether the problems encountered by the first group could be attributed to the mandated approach. Overall, the empirical results obtained were equivocal. Some results indicated that more planning problems were encountered by agencies in which the mandated approach was not appropriate to their position in the strategic grid. Other results were not supportive of this proposition. More work needs to be undertaken, therefore, to evaluate the predictive and explanatory power of contingency models of information systems planning. In addition, our research indicates a need to develop more rigorous theories of information systems planning behaviors, to improve the instruments needed to measure these behaviors, to explore the relationship between information systems planning behaviours and organizational effectiveness, to investigate how organizational learning impacts planning behaviors, and to determine the types of information systems planning problems that diffuse through organizations and those that remain localized.     

Integration Between Business Planning and Information Systems Planning: Validating a Stage Hypothesis

This paper proposes and empirically validates a stages of growth model for the evolution of Information Systems Planning (ISP). A questionnaire survey of senior IS executives is used to gather information pertaining to the stages of growth model, which includes measurement of the nature and level of integration between business planning (BP) and ISP. The del test is used to validate empirically benchmark variables for each stage of BP-ISP integration. The results support the stages of growth model of BP-ISP integration and the benchmark variables are generally found to be successful in predicting the stage of integration.     

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).     

Data Envelopment Analysis for Managerial Control and Diagnosis*

Data envelopment analysis (DEA) is a linear programming-based technique that converts multiple input and output measures into a single comprehensive measure of productive efficiency. This is accomplished via the construction of an empirically based production frontier and by the identification of peer groups. Each unit is evaluated by comparison against a composite unit that is constructed as a convex combination of other units in its peer group. DEA has now been applied in a variety of managerial contexts. In this paper we draw on theories of decision making, measurement and control, the mathematical properties of DEA, prior reported applications, and our own experience, to assess the potential of DEA as a general management tool. We first make the distinction between managerial diagnosis and control. We show how measurement requirements differ for these two managerial decision contexts, and argue that DEA has the potential to provide support in each context. Measurement and decision support criteria for each activity are then developed by reference to the literature on diagnosis and control. Based on its mathematical definition and properties, the relevant attributes of DEA are then derived. The technique is evaluated in each capacity by comparison to the appropriate set of criteria. This evaluation is supported with evidence from our experience with DEA in a large public-sector organization. We argue that the structural properties of DEA, critical managerial choices in its application, and situationally specific factors, interact to determine the strengths and limitations of DEA in each decision context. Implications for research and practice are discussed.     

Compensation Schemes,Skill Level,and Task Performance: An Experimental Examination*

The effect of budget-based incentive compensation schemes is a fundamental issue in developing and implementing organizational control systems. This study investigates the effect of alternative compensation schemes on performance and satisfaction. A theoretical model outlining the primary relationships is formulated and related hypotheses specified. The hypotheses reflect an integration of agency theory and organization behavior research. Across-group and within-group effects are investigated using both single-period and multiperiod analyses. A laboratory study involving 40 subjects is undertaken and the findings provide insights into the individual and group effects of alternative compensation schemes and the dynamics of changing Compensation schemes on productivity and satisfaction. Specifically, a relationship is found between compensation schemes and performance. The effect on performance is independent of the compensation scheme's perceived fairness. Satisfaction is a function of the congruence between the preferred scheme and the implemented scheme.     

Critical Dimensions of Strategic Information Systems Planning

Strategic information systems planning (SISP) is the process whereby an organization establishes a long-range plan of computer-based applications in order to achieve its goals. A number of problems can potentially impede information systems planners as they carry out the process. A survey of 80 firms who completed the SISP process revealed that the problems constitute five factors: the organization, implementation, database, hardware, and cost. A discriminant analysis showed that three factors—the organization, implementation, and database—best distinguished satisfied from dissatisfied information systems planners. A research application of the five factors suggested that organizations with more sophisticated business planning endure significantly less severe hardware and implementation problems.     

An Examination of Two Screen/Report Design Variables in an Information Recall Context*

Screen/report design for output organization is still very much a common sense-driven activity. This paper identifies a preliminary set of factors beyond display format for examination as screen/report design variables. A laboratory experiment was conducted to assess the influence of one of these factors, spatial layout of information, along with display format in an information recall context. Individual imagery orientation (verbalizer/visualizer) was used as a moderating variable in the experimental design. The findings indicate that spatial layout of information significantly influenced performance when the recall task involved pattern detection. In fact, a central location of data in a document was the most conducive to pattern recall performance. Further, terminal items facilitated pattern recall better than early input items. With respect to display format, the results support previous findings that a tabular display enhances performance for point-value recall tasks while graphs exhibit an edge over tables for pattern types of recall tasks. Overall, the verbalizers demonstrated a complete supremacy in performance. Interaction between individual imagery orientation and display format indicates that, while the verbalizers and the mixed type were immune to display format variations, the graphical stimulus enhanced the pattern recall performance of the visualizers.     

Discretionary Use of Computers: An Empirically Derived Explanatory Model*

This study identifies variables that explain variations in computer use. Factor analysis of data gathered from 422 business administration faculty reveal eight themes among the independent variables. Seven of these factors significantly discriminate among non, minimal, and high users. These results suggest an empirical model for future studies and provide policy insights for decision makers seeking to stimulate computer usage. Additionally, the study shows that there is much commonality between the previously separate organizational innovation and information systems implementation streams. It also demonstrates that motivation theory may be a valid framework within which to study computer use.     

Integrating the Content and Process of Strategic MIS Planning with Competitive Strategy*

This paper presents a framework that links strategic MIS planning and business strategy and relates it to competitive advantage and company performance. To achieve this objective, the paper first delineates the dimensions of strategic MIS planning, focusing on both content and process issues. The notion of fit within dimensions, between sets of dimensions (process and content), and between MIS planning and competitive strategy is also introduced. Next, employing the Miles-Snow typology of business strategy, the paper posits normative differences in the dimensions of strategic MIS planning along different business (or competitive) strategies. The implications of our study for both decision makers and scholars are discussed. Propositions that tie competitive strategy, strategic MIS planning, and company financial performance are then presented. The paper concludes by providing direction for future research.     

Does IO Economics Really Make the Case for Investments in IT: A Rejoinder

The preceding critique [1] of the paper “The Information Problems in Organizations: A Research Model for the Value of Information and Information Systems” [3], reaches general conclusions with respect to the original paper and the applicability of economics to MIS research. These conclusions are based on arguments developed at a different level of analysis than that used in the original paper, and without considering the goals and intent of the original paper. The differences between the critique and the original paper are highlighted.     

Inventory Control and Scheduling of Multiple Products in a Common Facility*

Consider a set of chemical products to be produced in a single facility. Each product has its own unique reaction time (which is assumed to be independent of its batch size), as well as other cost and demand values. In this paper, we address the problem of determining the optimal number of batches, batch sizes, and an accompanying production schedule for these products in the single facility that will minimize the total cost. Two different algorithms have been developed for this problem, the performances of which are contrasted with classical cyclic production schedules. Finally, some guidelines for the application of these methods to real-life problems are outlined.     

Toward Development of the End User Computing Construct in a University Setting*

The authors identify and define the end user computing (EUC) construct and operationalize the construct through development of a valid, reliable measure called the EUC activities scale. This scale is designed to distinguish specific, discrete computer activities performed on the job. The research analyzes the validity and reliability of the instrument based on data obtained from 776 university employees who participated in the initial, exploratory application. Exploratory factor analysis of the scale resulted in five factors. In order of increasing complexity of job-related computer activities, these factors are: beginning EUC activities, intermediate EUC activities, advanced EUC activities, EUC facilitation activities, and EUC infrastructure activities. The factor analysis, reliabilities, and known-groups analysis provide support for the construct validity of the instrument when used in a university setting. Suggestions are provided for further use of the scale in business environments to increase generalizability, refine the instrument, and help establish a coherent theoretical basis for further research in EUC.     

Distributed Computer System Capacity Planning and Capacity Loading

The availability of micro-, mini-, and super computers has complicated the laws governing the economies of scale in computers and has increased the tendency to decentralize and distribute computing power. The optimal design of such a system requires integration of computers of varying power and a strategy for capacity loading. This paper considers the problem of capacity planning and capacity loading of a distributed computer system as a hierarchy of decisions. A linear programming model is developed for the initial capacity planning problem. A loading model that accounts for variations in arrival and processing rates of the jobs in a dynamic environment is developed to support the operations.     

Cost and Shortage Trade-Offs in Aggregate Production Planning*

It is exceedingly difficult, if not impossible, to measure shortage costs. To bypass this difficulty in aggregate production planning, this paper develops an optimal policy function (piecewise linear or a curve) for trade-offs between shortages and the sum of production and inventory costs. The optimal management decision is based on this function. It should be of major interest in production planning since similar functions for inventory management have been successfully applied in practice.     

The Determinants of DSS Success: An Integrated Model*

The results of a field study investigating the determinants of decision support systems (DSS) success are presented. A multivariate model was developed and tested using multiple regression hierarchical analysis on responses from 118 DSS users. Several specific hypotheses are also proposed and tested. Data analyses indicate that DSS success, as measured by DSS satisfaction and perceived benefits, depends on several factors: previous user experience with DSS, user involvement, user training, top management support, information sources, the level of managerial activity, and task structure, difficulty and interdependence. Based on the research results, several suggestions are made to improve the likelihood of successful DSS implementation.     

A New Framework for Manufacturing Planning and Control Systems*

This paper presents a new framework for manufacturing planning and control systems which we call iterative manufacturing planning in continuous time (IMPICT) that appears to have several advantages over the well-known material requirements planning (MRP) framework. IMPICT explicitly considers capacity constraints and total system cost (including tardiness) to determine order sizes, order release/due dates, and operation schedules in a deterministic, multi-level, finite horizon, dynamic demand environment. Continuous time scheduling variables allow setups to be carried over from one period to the next. Three new heuristics built on the IMPICT framework are presented and tested in a simulation-based, full-factorial experiment with a wide variety of problem environments. The benchmark for the experiment was materials requirements planning with operations sequencing (MRP/OS) implemented with best-case, fixed planned lead times. The experiment showed that all three heuristics were statistically better than MRP/OS. The total cost for the order merging (OM) heuristic was 25 percent better than the total cost for MRP/OS. Computational times for OM were substantially larger than for MRP/OS; however, the computational times in the experiment suggest that OM is still computationally viable for large-scale batch manufacturing environments found in industry. IMPICT is superior to standard MRP systems because it explicitly considers capacity constraints and total system costs when it creates a materials plan. IMPICT is superior to linear programming-based approaches to finite loading and scheduling found in the literature because it allows setups to be carried over from one period to another and because it is computationally viable for realistic-sized problems.     

On the Repeated Test-Retest Reliability of the End-User Computing Satisfaction Instrument: A Comment*

This comment extends the test-retest reliability of the end-user computing satisfaction (EUCS) instrument by Torkzadeh and Doll [10]. Whereas Torkzadeh and Doll [10] reportedstability for two hour and two week EUCS test-retest reliability, we investigate the test-retest reliability of the EUCS instrument at two points in time, separated by a two yearinterval. We assess the end user computing satisfaction of personal computer, as well as mainframe, administrative end users in a large public organization. The results of the repeated test-retest using differing application platforms add further support for the reliability of the EUCS measure and highlight some areas of concern for managers of information systems.     

Construct Measurement in Information Systems Research: An Illustration in Strategic Systems

This study seeks to highlight construct measurement issues in information systems (IS) research. It describes the normative process of construct measurement and identifies the difficult problems involved in measurement and some ways in which these difficulties may be overcome. An illustrative construct-operationalization study in the area of strategic systems outlines how the normative guidelines may be applied to IS. Some specific recommendations for IS include developing a preliminary model of the construct even if there is little previous measurement research, devoting greater attention to predictive validity because a lack of theories in IS precludes the examination of nomological validity, verifying the assumptions underlying the computation of an overall index, and examining the measurement properties of the index.     

A Framework for Examining the Interface between Operations and Information Systems: Implications for Research in the New Millennium*

Even though much research has been published in operations and information systems, both functional areas find their roots in other disciplines. While operations management evolved from operations research in the 1960s, the field of information systems is of more recent vintage and traces its original roots to computer science. Both disciplines now naturally have come closer together as information and process-technology-based changes force manufacturing firms to become more efficient and customer focused. Market and technology-driven e-commerce initiatives that are likely to dominate business strategies in the future cannot be successfully achieved without a successful integration of operations and information systems. In this paper, we present a unifying framework that can be used to better understand the management of the functional interface between operations and information systems. We also categorize and highlight the contributions of the articles that appear in this special research focus issue. Finally, research directions that emerge from our understanding of this interface are outlined in an effort to stimulate further thinking and research that can advance our knowledge of this interface area.