Information Technology Flexibility Research Articles

Understanding the impact of technological flexibility at different decision levels to reap enterprise resource planning benefits

PurposeThis paper aims to provide a framework regarding Information Technology (IT) Flexibility in Supply Chain and its relationship with the benefits we could see from Enterprise Resource Planning (ERP) systems. Furthermore, this research explores the moderating effect of Process Integration Capability in the relationship between IT flexibility and ERP benefits.Design/methodology/approachThis research model will help organizations get additional benefits from their ERP systems that incurred huge costs, time and multiple resources at their implementation. The technique used for analyzing data is structural equation modeling (SEM), and data is collected from 107 respondents through a questionnaire from Business and IT Professionals.FindingsThe study findings reveal a positive and significant relationship between IT flexibility and ERP systems benefits; moreover, results also confirmed that the organization's process integration capability significantly increased the benefits of ERP systems. The findings also highlight empirical evidence about the significance of the top-to-bottom approach investing in IT flexibility and the bottom-to-top approach during the implementation of IT systems for successful implementations.Practical implicationsThis study has various implications for practitioners that help them successfully implement and long-term viability of their IT infrastructure.Originality/valueThis study's findings will help IT managers and strategists make effective decisions for creating IT flexibility in alignment with the strategic goals to realize the desired results expected from ERP systems and implementations of new IT systems.

Procuring services through IT crowdsourcing: The role of IT administration and IT flexibility

Digital platforms provide organizations with new ways to conduct sourcing activities. Crowdsourcing has emerged as one potential method of sourcing various kinds of information technology (IT) services. Notwithstanding the benefits of IT crowdsourcing services (ITCSs), there is a lack of clarity about why some firms procure services through ITCS, whereas others do not. Drawing on the organizational capabilities perspective, we hypothesize that in-house IT administration capability and IT flexibility jointly enhance a firm’s ITCS Platform Suitability Assessment, which, in turn, leads to higher ITCS Service Procurement. We also posit that ITCS Platform Suitability Assessment mediates the relationship between IT Administration Capability and ITCS Service Procurement. Our empirical analysis of survey data from 308 firms in the United States supports our hypotheses. Our results suggest that firms that develop IT administrative capabilities and IT flexibility assess ITCS platform characteristics as more suitable for ITCS-related activities. ITCS Platform Suitability Assessment, in turn, drives firms to procure operational services (e.g., setting up automatic payments) and strategic services (e.g., project management) from the loose configuration of workers in the gig economy. Our results contribute to theory by positing and testing a theoretical model that expands the theoretical base used to explain ITCS sourcing. We discuss the implications for the business value of IT platforms, organizational structure, and capabilities in regard to future sourcing strategies.

Examines the value of cloud computing adoption as a proxy for IT flexibility and effectiveness

Purpose The purpose of this study is to investigate the value of cloud computing adoption (CCA) as a proxy for information technology (IT) flexibility (ITF) and IT effectiveness (ITE) among Small- and medium-sized enterprises (SMEs) in Jordan. Design/methodology/approach A research framework with five hypotheses has been developed based on the results of previous studies. Partial least squares-structural equation modeling has been used for data analysis. Findings The results revealed that elements of ITF in two domains, IT technical resource (connectivity, modularityand compatibility) and IT human resource (IT personnel skills) specific to CCA, were significantly correlated with ITE. Research limitations/implications The findings have crucial implications: they contribute to the research community, administrators and cloud computing providers (CSPs) concerning the framework-improved procedure for CCA. The proposed model can enhance the awareness of service providers about why some SMEs accept cloud computing services, whereas actually the same ones having the same type of business do not. In addition, the above providers should enhance their interaction with the SMEs that contributed to the cloud computing knowledge to make a well-organized setting for the CCA, specifically, SMEs need that adopt an on-premise private cloud architecture. Moreover, necessary to determine the challenges in deploying solutions from the perspective of CSPs. The sample has been limited to Jordan respondents. Practical implications The research studies about the usage of cloud computing have shown its effects on SMEs today. Also, the different impacts of cloud computing on other sectors are at the center of attention. SMEs could get significant advantages by carefully considering and managing CCA from the ITF and ITE perspective. Originality/value To the best of the author’s knowledge, this is the first study to develop a framework for CCA based on the standpoint of ITF in two domains, IT technical resources (connectivity, modularity and compatibility) and IT human resources (IT personnel skills) and effectiveness.

Information technology capability, open technological innovation and firm growth.

The aim of this paper is to investigate the effects of information technology (IT) capability on firm growth in the context of open technological innovation. The paper utilized a logical deductive approach to develop hypotheses and analytical frameworks, and collected empirical data from 256 Chinese new ventures. Regression analysis and structural equation models were used to test the hypotheses and analyze the data. The results showed that IT capability, including flexibility and integration of information technology, significantly influenced firm growth, and open technological innovation partially mediated the relationship between IT flexibility and firm growth, and significantly mediated the relationship between IT integration and firm growth. The paper's limitations include the cross-sectional design, limited sample size, and potential unobserved variables such as organizational learning that could affect the relationship between IT capability and firm growth. The research is the first to investigate the effects of IT capability on firm growth based on the mediation of open technological innovation in China, contributing to the literature on IT capability and providing insights for managerial practice in the sharing economy era.

Digital service flexibility: a conceptual framework and roadmap for digital business transformation

ABSTRACT Due to the growing need to continually generate customer value, firms must be flexible to address changing business environments and customer expectations. Although research has examined Information Technology (IT) flexibility, the nuances of IT flexibility in services have received limited attention. This study uses a three-stage roadmap to build digital service flexibility. First, using prior research on services and IT flexibility, we articulate three dimensions for digital services flexibility (DSF): core DSF, transaction DSF, and customer DSF. Second, we propose a theoretical customer-service value framework as a blueprint for service firms to align their strategies along these three DSF dimensions using four propositions. Third, for DSF to be applied in practice, we discuss contextual and situational embeddedness to support digital transformation for services. We use a practical application of DSF using a multi-year case study that aligns service innovations inside and outside a patient room in a hospital setting. The main contributions of this study lie in a) conceptualizing digital service flexibility and identifying its three dimensions, b) proposing a conceptual framework highlighting how firms can use DSF in alignment with their business strategy, and c) illustrating how the concept of DSF applies in a hospital setting.

Enterprise Architecture to Achieve Information Technology Flexibility and Enterprise Agility

Although enterprise architecture (EA) is a topic of significant interest among scholars and practitioners, limited empirical research exists examining EA in the context of routinization, use of standards, information technology (IT) flexibility, and enterprise agility. Specifically, the study’s purpose was to explore the routinization of EA and develop a better understanding of how the use of EA standards impact IT flexibility and enterprise agility. The current study used a theoretical lens that combined competence-based theory and diffusion of innovation theory to study the topic of EA. The overarching research question was To what extent do organizational factors such as EA routinization and use of enterprise architecture standards, enabled through the adoption of EA, lead to increases in IT flexibility and enterprise agility?.. The analysis from this study supported the findings that the EA routinization and the use of the EA standards constructs influence IT efficiency, and in turn, IT efficiency influences enterprise agility.

When Do IT Capabilities Create Value for Buyer Performance? The Moderating Effect of Social Capital on Supply Chain Information Integration

ABSTRACT This study investigates the effects of information technology (IT) integration and IT flexibility on information sharing and collaborative planning within supply chain. It also examines the moderating roles of shared value and supplier trustworthiness. The results indicate that IT integration is positively related to collaborative planning, while IT flexibility is positively related to information sharing and collaborative planning. Furthermore, shared value and supplier trustworthiness positively moderate the effects of IT integration and IT flexibility.

The impact of digitalisation vision and information technology on organisations' innovation

PurposeBased on the dynamic capability theory (DCT), this study examines the role of digitalisation vision and the impact of key information technology (IT) strategies, such as IT flexibility, IT integration and IT agility, on organisations' process innovation capability and the subsequent impact these may have on innovation performance.Design/methodology/approachData for this study were collected from 153 public listed organisations in Malaysia. The survey questionnaire method was used to collect the data from the organisations' representatives.FindingsResults showed that it is important for organisation to have a strategic digitalisation vision to improve their process innovation capabilities. IT agility and IT integration also had a significant positive relationship with the process innovation capabilities of the organisations, which in turn had a positive impact on innovation performance.Originality/valueDigital transformation and innovation are crucial for organisations to survive in the era of Industry 4.0. However previous studies have not captured the role of digitalisation vision, strategic IT components and its impact on process innovation capabilities. The current study filled up the gap and examined these relationships. The outcome of this study provides valuable insights for managers to understand the importance of digitalisation and the need to focus on key IT strategies. Such insights can be used to improve organisations' process capability which is critical for innovation and performance.

The application of strategic alignment in a fuzzy environment: a case study in banking

As a natural consequence of rapid changes and high competition, companies have to determine right business and information technology (IT) strategies consistently to accomplish business value and IT flexibility. They also need to align their strategies and develop an appropriate roadmap in today's competitive environment. This study presents a new methodology to meet the banks' strategic alignment problem which can be defined hierarchically and solved in a top-down structure. For this aim, a method of aligning first business and IT strategies; then IT strategies and domains is proposed depending on the customer expectations and technological improvements. Expert judgments are collected in pairwise comparison with hesitant fuzzy linguistic term sets (HFLTS) for aligning and relatively weighting strategies and service domains. Proposed methodology is applied in a technology company of a big Turkish national bank. The results are approved by experts working as strategic managers in banks and technology companies.

The application of strategic alignment in a fuzzy environment: a case study in banking

As a natural consequence of rapid changes and high competition, companies have to determine right business and information technology (IT) strategies consistently to accomplish business value and IT flexibility. They also need to align their strategies and develop an appropriate roadmap in today's competitive environment. This study presents a new methodology to meet the banks' strategic alignment problem which can be defined hierarchically and solved in a top-down structure. For this aim, a method of aligning first business and IT strategies; then IT strategies and domains is proposed depending on the customer expectations and technological improvements. Expert judgments are collected in pairwise comparison with hesitant fuzzy linguistic term sets (HFLTS) for aligning and relatively weighting strategies and service domains. Proposed methodology is applied in a technology company of a big Turkish national bank. The results are approved by experts working as strategic managers in banks and technology companies.

Narrowing the Gaps: Assessment of Logistics Firms’ Information Technology Flexibility for Sustainable Growth

In a supply chain management context, the effective management of Information Technology (IT) flexibility has been an issue to be resolved. However, no analytical method that calculates the required and actual level of IT flexibility dimensions has been proposed. This paper aims to provide an analytical tool that measures the required and actual levels of IT flexibility dimensions to provide the best value from a logistics firm’s IT flexibility. To do so, we propose a combined Importance‒Performance Analysis (IPA) and Partial Least Squared Structured Equation Modelling (PLS-SEM) method based on a multidimensional IT flexibility model. By comparing industry-level data with client firm data, our method allows for effective identification of a client logistics company’s multiple IT flexibility gaps and indicates where particular management interventions are required. By proposing importance and performance as measurement scales, our research suggests an analytical tool that managers can utilize to assess IT flexibility and identify any gaps that exist between actual and required flexibility levels. This allows managers to effectively address areas that demand further attention. This approach also leads to an improved understanding of how organisations can extract the best value from their investment in IT flexibility to contribute to sustainable growth.

The effects of IT infrastructure integration and flexibility on supply chain capabilities and organizational performance: An empirical study of the electronics industry in Taiwan

In recent years, rapid development of information technology (IT) has forced companies to integrate tightly with their supply chain partners, enabling efficient information sharing between supply chain members and improving supply chain efficiency, in order to make their supply chain more flexible and efficient. IT therefore plays a critical role in supply chains. How to achieve higher organizational performance through IT in a complex and uncertain supply chain environment has become an important issue. Even though many practitioners and scholars have taken multiple points of view to investigate the effects of IT infrastructure capability on firms’ performance, little research has explored cause-and-effect relationships from the perspective of supply chain capabilities. Based on a resource-based view of the firm, this study develops a research framework for investigating the mediating role of supply chain capabilities in the relationships between IT infrastructure flexibility, integration, and firms’ performance. Data for the study were collected from 270 companies in the Taiwanese electronics industry and the relationships proposed in the framework were tested using the Partial Least Squares method. The results indicate that IT infrastructure integration and flexibility indirectly and positively impact organizational performance through the mediating effect of supply chain capability, and the mediating effect is a full mediation. The findings provide empirical support to resourced-based IT studies, which propose mediating IT impacts on organizational performance. This study should be useful to practitioners who implement IT strategy.

Organizational capabilities that enable big data and predictive analytics diffusion and organizational performance

PurposeBig data and predictive analytics (BDPA) has received great attention in terms of its role in making business decisions. However, current knowledge on BDPA regarding how it might link organizational capabilities and organizational performance (OP) remains unclear. Drawing from the resource-based view, the purpose of this paper is to propose a model to examine how information technology (IT) deployment (i.e. strategic IT flexibility, business–BDPA partnership and business–BDPA alignment) and HR capabilities affect OP through BDPA.Design/methodology/approachTo test the proposed hypotheses, structural equation modeling is applied on survey data collected from 159 Indian firms.FindingsThe results show that BDPA diffusion mediates the influence of IT deployment and HR capabilities on OP. In addition, there is a direct effect of IT deployment and HR capabilities on BDPA diffusion, which also has a direct relationship with OP.Originality/valueThrough this study, authors demonstrate that IT deployment and HR capabilities have an indirect impact on OP through BDPA diffusion.

Research of deployment models of cloud technologies for banking information systems

The object of research is banking information technology (IT). One of the most problematic issues is the low efficiency of using hardware resources and, as a result, high costs and time spent on maintaining and developing banking information systems (IS). The use of cloud technologies, especially with the use of the public cloud deployment model, can greatly enhance the economic efficiency of banking IT. In addition, there is an increase in the availability, flexibility and scalability of banking IT, as well as the time to market, (TTM). In the course of the study, quantitative and qualitative indicators of the functioning of banking IS were used. An analysis of modern approaches to building a service-oriented architecture of banking IS based on cloud technologies was conducted in scope of the research. The article describes the architectural solution of information technologies for the introduction of automated banking IS taking into account the requirements of the National Bank of Ukraine and European regulators. The analysis of the main banking systems and the expediency of using different models of cloud technologies deployment are analyzed. The result obtained in quantitative parameters of the system load allows to find additional reserves for optimization of time processing of information and increase economic efficiency using the Public cloud. The greatest effect can be achieved by applying this model to the Core Banking System (CBS). In order to comply with the requirements and to take into account restrictions on the placement of client data, the article proposes a mechanism for depersonalization. This ensures the possibility of obtaining the most optimal values of indicators. Compared to similar well-known services, such as virtualization, it benefits because there is no need to purchase, or lease hardware, and the computing power can be scaled in a much wider range.

Impact of Information Technologies, Corporate Entrepreneurship and Innovation on the Organizational Performance

Information Technology (IT) capabilities play a fundamental role on process innovation and organizational performance. Likewise, corporate entrepreneurship (CE) plays a vital role in the improvement of performance, as the employees' profile is determinant for the success of these organizations. Previous literature relating to IT and CE reveals how little attention has been paid to relationship between these constructs, and what exists is only partial. This research conceptualizes the relationship between IT capabilities, CE, and innovation on the organizational performance. It is intended as a contribution to the ongoing conceptual development of this area and provides initial guidance for future empirical evidence. Thus, the authors advance a synthesized conceptual model in order to evaluate the influence of IT capabilities (IT flexibility, IT integration and IT alignment) to the CE process, through innovation on the organizational performance. The authors create an initial construction of the scenery grounded in past literature, which is refined and reinforced into a conceptual model advancing in theoretical development in the field. Some future research and implications are discussed.

The influence of inter-firm IT governance strategies on relational performance: The moderation effect of information technology ambidexterity

How to create value from information technology (IT) in multi-firm situations has attracted the notice of both researchers and practitioners. However, as a critical factor to enhance relational performance, the inter-firm IT governance strategy has not been sufficiently studied. Based on the contractual and relational governance literature, this paper presents two inter-firm IT governance strategies, namely, balancing (focusing on achieving a close match between the relational and contractual governance) and complementing (focusing on creating synergy between the relational and contractual governance) governance strategies. Using data collected from 200 firms, we examined the relationship between these two governance strategies and relational performance. Furthermore, we studied the influence of a contingent factor, IT ambidexterity (simultaneous pursuit of IT flexibility and IT standardization) on this value generation process. Our results indicate that both inter-firm IT governance strategies, but especially the balancing strategy, can help increase relational performance, and IT ambidexterity also can influence the choice of governance strategies of focal firms. Specifically, focal firms with low IT ambidexterity prefer using a balancing governance strategy rather than a complementing governance strategy. On the other hand, focal firms with high IT ambidexterity can reduce or mitigate the risks of unbalancing strategy (such as the contractual-dominant or relational-dominant governance strategy), and then enhance the synergy effects of contractual and relational governance. Implications for theory and practice are also discussed.

Information technology and open innovation: A strategic alignment perspective

Advances in information technology (IT) have enabled firms to increasingly rely on open innovation. Although researchers and practitioners are interested in this phenomenon, there is a lack of theoretically driven research on how IT impacts organizational open innovation performance. Drawing on the strategic IT alignment perspective and related literature, we proposed a model to explain the performance of organizational open innovation; i.e., the alignment between IT strategies and the openness of open innovation strategies results in different outcomes for open innovation. Through the analysis of data from 225 firms in China, we found that the alignment between IT flexibility and breadth enhances innovation radicalness and innovation volume, whereas the alignment between IT integration and depth positively affects innovation volume only. Innovation volume and radicalness were found to enhance organizational performance in terms of sales growth. Our study contributes to the literature on open innovation and strategic alignment. Its findings also have important managerial implications for practitioners.

Management Insights

Management Insights

The Effect of Information Technology–Enabled Flexibility on Formation and Market Value of Alliances

This study investigates the effect of information technology (IT) architecture flexibility on strategic alliance formation and firm value. We first examine the effect of three dimensions of IT architecture flexibility (open communication standards, cross-functional transparency, and modularity) on formation of three types of alliances (arm's-length, collaborative, and joint-venture alliances, respectively). Then, we examine how capabilities in IT flexibility can enhance the value derived from alliances. Our sample includes data from 169 firms that are publicly listed in the United States and that span multiple industries. We find that adoption of open communication standards is associated with the formation of arm's-length alliances, and modularity of IT architecture is associated with the formation of joint ventures. We also find that IT architecture flexibility enhances the value of arm's-length, collaborative, and joint-venture alliances. The contribution of IT flexibility to value is greater in the case of collaborative alliances than in arm's-length alliances. Taken together, these findings suggest that appropriate investments in IT can help to facilitate reconfiguration of resources and modification of processes in collaboration-intensive alliances. This paper was accepted by Ramayya Krishnan, information systems.

A study on usage of IT and its implications on e-procurement in Indian organisations

Information technology (IT) plays a crucial role in the adoption of e-procurement. This paper reports the findings of a survey carried out in 36 Indian organisations to ascertain the impact of IT on e-procurement practices. The findings of the survey suggests that the deployment of IT in Indian organisations is of a level that can be quite helpful in improving internal business process efficiency such as better inventory control, reduced cost and time and improved customer service. While the organisations seem to have the necessary strength (IT infrastructure and flexibility) for adoption of e-procurement, the technological barriers (security concerns and incompatibility) are still to be surmounted. Internet security concerns, loss of information sharing, and legal legitimacy issues are the three most important factors that needs to be addressed properly for building trust on internet. However a grey area, as identified by the survey is that use of IT by small and medium enterprises is low and it needs to be increased.