Information Technology Sophistication Research Articles

Empirical Evaluation of an Integrated Supply Chain Model for Small and Medium Sized Firms

With increased global competitive pressures, companies operating in these competitive environments are not only looking to their distribution division to save money, but also to generate competitive advantages. One technique is the integrated supply chain. However, this process has not met with success for all companies, leading some managers to consider the appropriateness of an integrated supply chain. This dearth of success could be attributed to the lack of scholarship to guide managers in their efforts to formulate and then implement their integrated supply chain strategies. In an effort to fill this gap, our paper draws on resource dependency theory and the realities of ever-increasing information technology sophistication as enablers of successful supply chain integration, resulting in the creation of our model to guide managers throughout this process. Through a Web-based survey, 329 responses were collected and analyzed through a structural equation modeling technique using LISREL to confirm the relationships in the model.

Multiple Conceptualizations of Small Business Web Use and Benefit*

ABSTRACTSmall businesses play an important role in the U.S. economy and there is anecdotal evidence that use of the Web is beneficial to such businesses. There is, however, little systematic analysis of the conditions that lead to successful use of and thereby benefits from the Web for small businesses. Based on the innovation adoption, organizations, and information systems (IS) implementation literature, we identify a set of variables that are related to adoption, use, and benefits of information technology (IT), with particular emphasis on small businesses. These variables are reflective of an organization's contextual characteristics, its IT infrastructure, Web use, and Web benefits. Since the extant research does not suggest a single theoretical model for Web use and benefits in the context of small businesses, we adopt a modeling approach and explore the relationships between “context‐IT‐use‐benefit” (CIUB) through three models—partial‐mediator, reduced partial‐mediator, and mediator. These models posit that the extent of Web use by small businesses and the associated benefits are driven by organizations’ contextual characteristics and their IT infrastructure. They differ in the endogeneity/exogeneity of the extent of IT sophistication, and in the direct/mediated effects of organizational context. We examine whether the relationships between variables identified in the literature hold within the context of these models using two samples of small businesses with national coverage, including various sizes, and representing several industry sectors. The results show that the evidence for patterns of relationships is similar across the two independent samples for two of these models. We highlight the relationships within the reduced partial‐mediator and mediator models for which conclusive evidence are given by both samples. Implications for small business managers and providers of Web‐based technologies are discussed.

Information technology sophistication in health care: an instrument validation study among Canadian hospitals

Several empirical studies have shown that the use of computer-based information systems could have positive impacts on organizational performance. Many agree to say that health care organizations are no exceptions. But if one wishes to identify the effects of information technology (IT) on the delivery of care, one must be able to characterize IT for operationalization purposes. The primary objective of this research project is to develop and validate a measurement instrument of IT sophistication in the hospital milieu. Such instrument should provide hospital managers with a diagnostic tool capable of indicating the profile of their respective institutions in regard to IT adoption and comparing this profile to those of other similar medical centers. Both qualitative and quantitative data were collected in order to assess the psychometric properties of the measurement instrument. Overall, findings suggest a high–moderate level of functional sophistication, a somewhat low level of technological sophistication, and an even lower level of integration sophistication in all of the sampled medical centers. Hence, future investments shall therefore be directed towards the integration of clinical and administrative applications and the acquisition of more advanced technological devices, more specifically those, which allow direct capture of clinical data at the bedside.

Guidelines for computerized presentation of emergency operating procedures

New methods of information presentation and interface design have changed the work conditions in the modern nuclear power plant control room. One area that is receiving considerable attention is that of procedures—in particular, emergency operating procedures (EOPs). Such procedures are traditionally available as printed documents; however, developments in information technology have created new opportunities for procedure presentation, and this paper reports on the development of human factor guidelines for computerized presentation of EOPs. After identifying the principle stages in the transition from procedures as documents to fully automated procedures, computerized procedure presentation (CPP) is briefly discussed. Guidelines for the presentation of such are outlined, starting with the high level goals that also constitute the criteria against which the computerized procedures are measured during implementation. Six dimensions that describe CPP are presented and explored in detail, by identifying points in each dimension that characterize different levels of information technology sophistication.

Matching information technology and organizational structure: an empirical study with implications for performance

In information systems and organization theory research, the alignment or fit between information technology (IT) and organizational structure has long been hypothesised to be a sine qua non for success. However, few solid results have been found linking this relationship to enterprise level performance, as problems abound in defining and measuring IT, performance and the fit between technology and structure. In view of this, an empirical study was conducted among 108 small and medium-sized manufacturing firms, using a comprehensive instrument to measure overall IT sophistication along two dimensions, namely IT usage and IT management. Taking organizational size and environmental uncertainty into account, it was found that IT sophistication is positively related to structural sophistication, IT usage is positively related to organizational performance, and the relationship between IT management and structural sophistication is stronger among the better-performing firms than among the worst-performing firms.

An Examination of IT Planning in a Large, Diversified Public Organization*

The conduct of information technology (IT) planning processes has been of dominant managerial concern in public and private organizations. Yet, current IT planning research offers little guidance on the types of planning actions and behaviors that are appropriate to organizational contexts. We focus on the conduct of the IT planning process by describing an exploratory research project. The project empirically examined a number of issues associated with managing IT planning within a single large public enterprise, particularly identifying actions and behaviors related to producing quality IT plans.The results of the study yield some useful set of guidelines; most interesting is the importance of building IT infrastructure based on IT sophistication and innovativeness for large agencies to improve plan quality. Other recommendations include having a focused, balanced technology and business planning orientation that incorporates a strategic outlook, support of top management, attention to business planning, and early consensus among planning members.

The profit impact of IT investment

Two models were used to study the relationships between profitability and the level of information technology (IT) sophistication among long-term life insurance companies in South Africa. The first model was submitted by Kwong et al. in a study of six petroleum producing companies in Malaysia. They proposed a computerization index (CI) which incorporated factors that affect the level of computerization in a company and compared the CI with profitability ratios such as profit/total assets, profit/turnover, turnover/total assets, gross margin/turnover, profit growth rate and sales growth rate. The second model was proposed by Harris et al. in a study among forty long-term life insurance companies in America. They used the ratio of non-interest operating expense to premium income (operating expense ratio) to measure profitability, and the ratio of IT expense to non-interest operating expense (IT expense ratio) to measure the level of IT capital intensity. The results of the study showed a positive correlation between the Cl and the financial ratios, indicating that as the level of computerization increases, profitability also increases. The results also showed that the most profitable firms are more likely to spend a significantly higher proportion of their non-interest operating expenses on IT, and that the least profitable firms are likely to spend a significantly lower proportion of their non-interest operating expenses on IT. The study concludes by accepting the two studies as valid among the long-term life insurance industry in South Africa.

Measurement of Information Technology Sophistication in Small Manufacturing Businesses

If one wishes to identify the effects of information technology on organizational structure, strategy and performance, one must be able to characterize IT for operationalization purposes as a construct within a research framework. An initial requirement consists of developing and validating an instrument designed to measure an organization's level of sophistication in the use and management of IT. A preliminary version of such an instrument was built to be applied in small manufacturing enterprises and tested with a sample of 101 organizations. The results of this study constitute a first step toward developing an understanding of IT sophistication and provide initial evidence for the reliability and validity of the proposed instrument.