Investments In Information Systems Research Articles

Linking Success Factors to Financial Performance

Problem statement: Based on a literature survey, an attempt has been made in this study to develop a framework for identifying the success factors. In addition, a list of key success factors is presented. The emphasis is on success factors dealing with breadth of services, internationalization of operations, industry focus, customer focus, 3PL experience, relationship with 3PLs, investment in quality assets, investment in information systems, availability of skilled professionals and supply chain integration. In developing the factors an effort has been made to align and relate them to financial performance. Conclusion/Recommendations: We found success factors “relationship with 3PLs and skilled logistics professionals” would substantially improves financial performance metric profit growth. Our findings also contribute to managerial practice by offering a benchmarking tool that can be used by managers in the 3PL service provider industry in India.

An Empirical Test of the Information Processing Theory

According to the propositions in the information processing theory, this study tests the relationship between task uncertainty and three organizational design strategies, i.e., creation of lateral relationships, investment in information systems, and creation of self-contained tasks. Data from 125 North American manufacturing firms are used and business environment uncertainty is employed to measure task uncertainty. Sourcing practice and delivery practice measure the creation of lateral relationships, while Information quality measures the investment in information systems. Also, just-in-time production and human resource management measure the creation of self-contained tasks. Regression analysis shows that business environment uncertainty has significant positive influence on sourcing practice, delivery practice, information quality, just-in-time production, and human resource management. While the information processing theory was proposed more than thirty years ago, this study empirically extends the relevance of information processing theory to today’s supply chain environment.

Psychiatric remuneration systems in Europe: an overview

SummaryNew forms of psychiatric remuneration linked to levels of activity undoubtedly will have an increasing role to play in mental health systems right across Europe. Potentially they can be more efficient and promote choice, but valid concerns have been raised about their impact on the sustainability and nature of psychiatric care. This article looks in particular at recent developments in England and the Netherlands and reflects on how remuneration mechanisms may need to develop further both to improve efficiency and quality within the context of an ever more fragmented and multi-sectoral mental health system. Any introduction of activity- based reimbursement should be introduced gradually. This should be accompanied by investment in adequate information systems to help better understand service utilisation patterns, transitional funding safeguards to reduce the risk of financial instability and incentives/ contractual measures to ensure that services strive to offer services of the highest possible quality that meet the needs of service users.

ANALYSIS OF THE IMPACT ON ACCOUNTING IN THE PROCESS OF IMPLANTING CORPORATE GOVERNANCE WITHIN A COMPANY

Um conceito recorrente tem sido o de governança corporativa, entendido como o conjunto de práticas e regras, de natureza jurídica, social e econômica, que estabelece o relacionamento e regula o conflito entre os diversos segmentos envolvidos nas atividades das companhias, com ênfase na proteção dos interesses dos acionistas. Assim, o artigo objetiva analisar os impactos para a contabilidade no processo de implantação da governança corporativa em uma empresa. Os procedimentos metodológicos adotados caracterizam a pesquisa como exploratória com abordagem qualitativa, realizada por meio de um estudo de caso em empresa que implantou a governança corporativa. Os resultados da pesquisa mostram os impactos para a contabilidade no processo de implantação da governança corporativa na empresa. Os impactos na contabilidade foram relativamente pequenos, haja vista que uma melhor estruturação demandaria maior volume de investimentos em pessoal especializado, consultorias, equipamentos e sistemas de informações.

정보시스템 인퓨전(Infusion)에 대한 연구: 사회-기술적 체계 관점

Many organizations have spent huge investments on information systems (IS) but are unable to achieve the maximum benefits expected. The problem of system underutilization of implemented IS is a major factor that causes the lackluster returns on organizational investments in IS. In light of the need for solutions to underutilization, researchers are beginning to explore IS infusion to enhance task performance. IS infusion is the extent to which an individual fully uses the system to enhance his or her task performance. So far, there has yet to be any significant finding or theory to explain the phenomenon. Therefore this study offers a conceptual framework on IS infusion based on the socio-technical system perspective. Particularly, this study investigates the influence of job fit, task competence, technology competence, self-determination with technology and self-determination with task on IS infusion. The analysis following the collection of empirical data found that job fit and self-determination with technology are positively related to IS infusion. This study serves as a basis for future research and suggests important implication to managers and system designers in promoting IS infusion.

Managerial Interpretations of the Role of Information Systems in Competitive Actions and Firm Performance: A Grounded Theory Investigation

Using an interpretive grounded theory research approach, we investigate the utilization of organization-wide information systems in the competitive actions and responses undertaken by top managers to sustain their firms' leading competitive position. Our central contribution is a model that explicates the role of information systems in the process by which competitive actions or responses are conceived, enacted, and executed, and resulting impacts on firm performance—issues that have been largely missing from contemporary research in both the information systems and competitive dynamics domains. This study has important implications for both research and practice. Specifically, researchers should consider organizational context; the intentions and actions of key players; and the process of conceiving, enacting, and executing competitive actions or responses carried out by the organization to account for the impact of information systems on firm performance. Findings suggest that when managers envision information systems as a resource that provides opportunities for competitive actions rather than viewing information systems in a service role, competitive advantages will evolve. Furthermore, practitioners will be better able to leverage information systems investments if they recognize the embedded role of information systems within the competitive actions or responses a firm undertakes to maintain or improve relative performance.

Innovation, Information Systems Strategic Alignment and Business Value

For more than two decades the strategic alignment of information systems (IS) is one of the most important issues that IS and business managers face and at the same time a major research topic in the IS domain. In this paper the authors present an empirical study of the business value of IS strategic alignment, which examines IS strategic alignment both at the strategy formulation and implementation level. Also, investigated in this paper are the effects of adopting an innovation strategy on IS strategic alignment. The study is based on firm-level data from Greek companies, which are used for estimating econometric models of firm output based on the Cobb-Douglas production function. It is concluded that IS strategic alignment, both at the strategy formulation and implementation level, generates significant business value, increasing considerably the contribution of ICT investment to firm output. Finally, the adoption of innovation strategy has a positive effect on the strategic alignment of IS both at the strategy formulation and implementation level, as it puts pressure on firms to direct their IS investment towards the support of their new innovative products/services, and increases the involvement of organizational units.

Exploring Relationships between Key Success Factors and Performance Metrics for Indian Express Delivery Service Providers

Studies on the global express industry are few and far between in the academic literature. The purpose of this paper is to identify from the extant literature the variables and dynamics significant for this industry and present a survey of Indian express delivery service providers in terms of these variables and their inter-relationships to assess the state of the sector, its dynamics, problems, and growth opportunities. The Indian express sector generates approximately USD 1.6 billion of revenues, growing at about 20% per annum, and employs close to one million people. The sector is fragmented, consisting of about 2,500 players with a few large players capturing about 80% of the market. The survey shows that small firms perform poorly with respect to on-time delivery and reliability, breadth of services, geographic coverage, investments in assets and information systems, and integration of services. However, all these factors are shown to be important determinants of success, and, therefore, small firms need to seriously concentrate on these factors, besides focusing on value-added services, global reach, computerization, and automation to improve their performance. The survey also shows that firms irrespective of their size do not place much emphasis on human resources. However, human resources turn out to be a significant predictor variable as far as firm performance is concerned. Therefore, it is imperative for firms to put a proper human resource management plan in place. It is expected that the findings of the survey would help managers make informed decisions in terms of the allocation of scarce resources. However, the government is expected to introduce policies conducive to the growth of express delivery services in India.

An integrated multivariate approach for optimisation of IT/IS investment in conventional power plants

Several organisations are seeking to determine the impact of Information Technology (IT)/Information Systems (IS) investments on their performance measures. Industrial units such as power plants are not exempt from this issue. This paper presents an integrated multivariate approach for assessment and optimisation of IT/IS investment in conventional power plants. The Data Envelopment Analysis (DEA) approach is used to assess the IT/IS investment impacts on the performance of power plants. Furthermore, Principal Component Analysis (PCA) is used to verify and validate the findings of the DEA approach. IT/IS budget, number of IT/IS employees and number of PCs are used as input variables and total power generation and load factor are used as output variables. The proposed approach is applied to eight power plants and its advantages are discussed. This is the first study that presents a practical tool for policy making and optimisation with respect to IT/IS investment in conventional power plants.

Up in Smoke: Tobacco Use, Expenditure on Food, and Child Malnutrition in Developing Countries

This paper explores the impact of expenditure on smoking products in low‐income households on child nutrition, as mediated via reduced food expenditure. On the basis of data from a large household survey in rural Indonesia, the study finds that low‐income households containing at least one smoker tend to divert a significant amount of scarce income to tobacco products and that relatively more of the diversion is drawn from food than from nonfood purchases. This results in a real decline in the quantity and quality of food consumed in the poorest households, which is associated with a statistically significant reduction in the nutritional status of children in those households. In other words, parental smoking increases child malnutrition via its displacement effect on food consumption—an intuitive but rarely documented empirical finding. Attention is needed to finding appropriate mechanisms for enhancing food and nutrition in poorest households in tandem with investments in public health information systems that highlight these indirect, as well as direct, links between smoking and child well‐being.

A model based approach for calculating the process driven business value of RFID investments

Calculating the process driven value of RFID investments is very difficult. It is important to understand the concrete contribution of an RFID system for the planning and configuration of individual processes, especially among supply chain stakeholders. However, profitability analyses in information system (IS) investments are problematic because they cannot be calculated as an economic standard investment. Hence, we propose a reference model for referential RFID impacts. Our artefact supports the structuring and evaluation of RFID benefits along business processes as we propose indicators for the derivation of an individual RFID cause-and-effect-chain. For evaluation, the model is applied in a Russian automotive project.

A real options approach for evaluation and justification of a hospital information system

Nowadays healthcare organizations globally recognize the importance of investing in information technologies to improve the quality of care delivery and reduce costs. The key drivers of healthcare sector such as continuously improving healthcare standards and insurance systems have introduced new requirements for hospitals, which in return provided a solid ground for decision-makers to consider implementing hospital information systems that are customized and improved versions of enterprise resource planning (ERP) systems designed according to the needs of the healthcare sector. The conventional discounted cash flow methods ignore the value of managerial and strategic flexibility inherent in these investments, which is crucial for justification of the investment decision. This study introduces a real options-based methodology which overcomes the limitations of traditional valuation methods and enables decision-makers to value an ERP system investment incorporating multiple options. The option valuation model developed in this study extends the binomial lattice framework to model a hospital information system (HIS) investment opportunity with compound options. The potential application of the proposed model is illustrated through evaluation of a real-world HIS investment.

Information sharing and strategic signaling in supply chains

Information sharing in procurement occurs in rich and varied industry contexts in which managerial decisions are made and organizational strategy is formulated. We explore how information sharing ought to work in procurement contexts that involve investments in inter-organizational information systems (IOS) and collaborative planning, forecasting and replenishment (CPFR) practices. How and under what circumstances does a firm that plays the role of a supply chain buyer decide to share information on key variables, such as point-of-sale consumer demand data with its supplier, up the supply chain? This is a key issue that crosses the boundary between supply chain management and information systems (IS) management. The answers that we provide are based on our use of a game-theoretic signaling model of buyer and supplier strategy in the presence of uncertainties about final consumer demand. We also explore the connection between operational costs that are associated with the firm’s information sharing and information withholding strategies. Our results provide normative guidance to supply chain buyers about how to interpret different demand uncertainty scenarios to improve their decisions and generate high value. From the IS management perspective, we show the impacts on the firm of different information sharing approaches that are made possible by present day technologies.

An integrated Delphi/VAHP/DEA framework for evaluation of information technology/information system (IT/IS) investments

This article presents an integrated voting analytic hierarchy process (VAHP), Delphi, and data envelopment analysis (DEA) framework for information technology and information systems (IT/IS) investment evaluation problems. Furthermore, IT/IS adoption and investments issues are stressed in organizations by several authors. Moreover, several studies have identified the lack of complete and effective method in this area. Delphi is designed to overcome the interpersonal behavior problems of work groups. VAHP has been used for supplier selection problem, and DEA is a universally accepted non-parametric method that uses linear programming to calculate the efficiency of defined decision-making units. Each of the above tools is placed in appropriate stage of the proposed framework to solve the current IT/IS investment issues in organizations. At first, by conducting Delphi, the appropriate hierarchy structure of input/output criteria and sub-criteria is established. In second step, by using statistical analysis, validation of Delphi results for selecting criteria is assessed. Then, by evaluating team votes, the input/output criteria and global weights of criteria are determined by VAHP. As a fourth step, Delphi is used again to score alternative investments on all sub-criteria of each input/output criterion. Finally, once each input/output criterion for each alternative is determined, DEA is used to determine the efficient and inefficient IT/IS investment alternatives. The proposed framework is applied to a large multi-disciplinary power holding organization, and its advantages and superiorities are analyzed and discussed. Also, its advantages have been shown versus existing methods in the literature.

Inventory control with product returns: The impact of imperfect information

Product returns are characterized by considerable uncertainty on time and quantity. In the literature on inventory management for product return environments best forecasts of future returns are associated with methods that use the most information regarding product return history. In practice, however, data is often scarce and unreliable, while forecasts based on historical data, reliable or not, are never perfect. In this paper we therefore investigate the impact of imperfect information with respect to the return process on inventory management performance. We show that in the case of imperfect information the most informed method does not necessarily lead to best performance. The results have relevant implications regarding investments in product return information systems.

Selling to the U.S. Government: A Primer for Small-to-Medium-Size Enterprises

Until recently, business- to-government (B2G) marketing has received relatively little attention in academic journals and proceedings (Reid and Plank, 2000). Times are changing, however, and businesses of all sizes today are encouraged to pay renewed attention to the government market as they develop their marketing strategies (Dickover, 2006; Kennedy and Cannon, 2004). Government investment in information systems is leading the way by creating efficiencies in both the procurement and marketing processes. The major economic powers, such as the G7, as well as rapidly developing economies, such as India, are in the forefront of developing e-government programs that are impacting the buyer-seller interface. The model for them all, however, is the United States Federal Government. With spending for goods and services exceeding $341.4 billion per year (2004), the United States Federal Government is easily the world's largest consumer. Web sales of $3.6 billion, principally in bonds and treasury notes, also makes the federal government the country's largest electronic retailer, surpassing even Amazon (Stone, 2000). And, with the growth of e-commerce, it is has been reported that 15 percent of all federal procurement is now electronic and rapidly expanding (Frook, 2003). The aim of this article, together with the references provided, is to assist marketing executives, especially in small or minority-owned businesses, to become more fully informed in order to develop successful strategies to compete in the government market.

Competitive advantage from mandatory investments

Mandatory information system (IS) investments occur when government regulations require firms to alter their IS. These investments are additional expenditures added onto the initial expenditures of...

IT/IS implementation risks and their impact on firm performance

There has been considerable theoretical work on the role of information systems (IS) in creating competitive advantage and enhancing organizational performance. The literature identifies a consistent lack of success by organizations in achieving business benefits from their IS investments and in particular their difficulties in obtaining a sustainable competitive advantage. A great deal of debate appears to exist nowadays related to the participation of information technology (IT) risks to organizational performance. Previous research has dealt with the examination of the existing relationships between the implemented information technology and firm's performance variables. This research focuses on the IT impact on firm's non-financial IT risk. The research was conducted using questionnaires that were sent to world's five hundred largest corporations as they were published in the fortune magazine (European edition, No. 14, 2003) and to Greek companies. The results indicate that IT risk factors affect mainly coordination and partially information ability but not productivity. Furthermore, the most significant risk factors affecting business performance are management ability, information integrity, controllability and exclusivity.

Competitive advantage from mandatory investments: An empirical study of Australian firms

Mandatory information system (IS) investments occur when government regulations require firms to alter their IS. These investments are additional expenditures added onto the initial expenditures of non-mandatory IS investments. Managers are concerned about associated costs and in an attempt to reduce the expenditures, most firms refrain from formal planning methods when mandatory investments are imposed upon them. Drawing on Henderson’s and Sifonis’ (1988) IS Planning and Investment Model as our theoretical lens, this paper argues that firms should re-consider this practice. It is hypothesised that formal planning methods are beneficial because they enable firms to combine mandatory and non-mandatory investments in such a way that competitive advantage can be achieved. We use a secondary dataset provided by the Australian government to test the hypotheses. Results show that only two out of three investigated formal planning methods are positively associated with competitive advantage. We conclude that in the special case of mandatory investments, formal methods are only beneficial if they incorporate information from the entire firm, rather than information from particular departments only.

Information management of medical errors in Greece: The MERIS proposal

There is a substantial amount of public concern about patient safety, as, according to estimates from major studies, hundreds of thousands die in hospitals each year all over the developed world as a result of medical errors that could have been prevented. Unprecedented research commissioned by the EU has found that almost one out of every four families has experienced a serious medical error. Greek citizens concerning about serious medical errors in the hospital environment, were at the top of the list. Greek Ombudsman's report on medical errors has raised the debate among health policy makers as to the appropriate response to the problem. Proposals range from the implementation of nationwide mandatory reporting with public release of performance data, to voluntary reporting and quality-assurance efforts that protect the confidentiality of error-related data. Any successful safety program will first require a national effort to make significant investments in information systems, along with providing an environment and education that enables to contribute to an active quality improvement process. In this paper we propose the development and implementation of Medical Error Reporting Information System ( MERIS), in order to identify, collect, analyse and report medical errors and patient adverse events, as a tool for enhancing patient safety and health care quality. We also describe the necessary organisational structure and the infrastructure environment of the system and the barriers to its successful implementation.