Abstract
This paper proposes a formal model of information processing in organizations. The model takes a process view of organizations and includes both structural and IS features of processes. Two structural properties are considered, networking and parallelism. Information systems are represented in terms of quantity of information used and level of information customization allowed. Process performance is measured in terms of total information processing capacity and flexibility afforded by a process. The relationship between structural and information system choices and process performance is studied by simulating the model for a range of values. The paper derives a set of propositions describing the independent and combined impact of structural and information system choices on performance. The results suggest the predominance of networking over parallelism and of information customization over information quantity in determining information processing capacity. They also show a negative effect of networking on process flexibility and an amplifying effect of networking on the benefits of information customization. Overall, the findings validate the interdependence between structural and information system variables in determining process performance.
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