IT Architecture and Organizational Learning: The Effect of Modularity and Virtualization

Abstract

We study the relationship between the IT architecture and organizational learning. Specifically, we explore the impact of the modularity and virtualization of IT architecture on a firm's organizational exploration and exploitation. Drawing on prior research on modularity, virtualization, organizational learning, and IT governance, we develop a theoretical framework that suggests the modularity and virtualization of IT architecture fosters explorative and exploitative learning. Our model provides a theoretical basis for four different archetypes of IT architecture: traditional enterprise architecture, cellular architecture, modular architecture and virtual architecture. We further propose that the effects of modularity and virtualization are moderated by the locus of IT control and the ownership of IT resources.