Rapid business and IT change: drivers for strategic information systems planning?

Today's organizations increasingly plan new information systems (IS) to better compete. Through such planning, they attempt to align their IS strategy and their business strategy. This study tested the impact of business and information technology (IT) change on strategic information systems planning (SISP) horizon, of horizon on the planning itself, and of the planning on the alignment of IS strategy and business strategy. A questionnaire defined business change, IT change, and alignment as multi-item scaled questions, and planning horizon as a single, nonscaled one. It defined a multi-item scaled SISP measure as both a second-order construct and as single-order constructs for its individual phases. A postal survey collected data from 161 IS executives. Constructs were extensively validated. The analysis used structural equation modeling, and surprisingly found that business change predicted longer SISP horizons, but IT change predicted neither longer nor shorter ones. Planning horizon predicted SISP itself (as a second-order construct and as all of its phases), and such planning (as a second-order construct, and as strategic awareness and strategy conception phases) predicted alignment of IS strategy and business strategy. These findings suggest that practitioners more carefully assess their own degree of caution in setting planning horizons in response to business and IT change. In fact, the findings suggest it may not be necessary for practitioners to shorten planning horizons in a rapidly changing environment.

[1]  R E Miles,et al.  Organizational strategy, structure, and process. , 1978, Academy of management review. Academy of Management.

[2]  Albert L. Lederer,et al.  Rapid Change: Nine Information Technology Management Challenges , 2000 .

[3]  T. Das,et al.  Time: The hidden dimension in strategic planning , 1991 .

[4]  Bruno Jullien,et al.  Scientific progress and irreversibility: an economic interpretation of the ‘Precautionary Principle’ , 2000 .

[5]  Albert H. Segars,et al.  Strategic Information Systems Planning Success: An Investigation of the Construct and Its Measurement , 1998, MIS Q..

[6]  David A. Statt The time dimension , 1994 .

[7]  D. Deschoolmeester Strategic Information Systems Alignment , 2004 .

[8]  Albert L. Lederer,et al.  Key Prescriptions for Strategic Information Systems Planning , 1996, J. Manag. Inf. Syst..

[9]  Wynne W. Chin The partial least squares approach for structural equation modeling. , 1998 .

[10]  R. Baskerville Information Warfare: A Comparative Framework for Business Information Security , 2005 .

[11]  Carl M. Rebman,et al.  Emerging information technologies: developing a timely IT strategy , 2005, CACM.

[12]  Philip J. Pyburn,et al.  Linking the MIS Plan with Corporate Strategy: An Exploratory Study , 1983, MIS Q..

[13]  P. H. Friesen,et al.  Strategy‐making and environment: The third link , 1983 .

[14]  William R. King,et al.  Organizational Characteristics and Information Systems Planning: An Empirical Study , 1994, Inf. Syst. Res..

[15]  Albert L. Lederer,et al.  Incremental and Comprehensive Strategic Information Systems Planning in an Uncertain Environment , 2006, IEEE Transactions on Engineering Management.

[16]  Rita Marcella,et al.  Managing in the Next Society , 2003, J. Documentation.

[17]  J. Ward,et al.  Strategic Planning for Information Systems , 1990 .

[18]  Felix B. Tan,et al.  Aligning business and information systems thinking: a cognitive approach , 2006, IEEE Transactions on Engineering Management.

[19]  Petter Gottschalk,et al.  Strategic information systems planning: the IT strategy implementation matrix , 1999 .

[20]  Larry G. Epstein DECISION MAKING AND THE TEMPORAL RESOLUTION OF UNCERTAINTY , 1980 .

[21]  Zahir Irani,et al.  Information system flow models for new product development processes: speed and flexibility vs. focus and control , 2002, Int. J. Inf. Technol. Manag..

[22]  Vallabh Sambamurthy,et al.  Sources of Influence on Beliefs about Information Technolgoy Use: An Empirical Study of Knowledge Workers , 2003, MIS Q..

[23]  C. Schriesheim The Similarity of Individual Directed and Group Directed Leader Behavior Descriptions , 1979 .

[24]  John Benamati Managing information technology in a changing information technology environment , 1997 .

[25]  M. Peters,et al.  Strategic planning for MIS , 1978 .

[26]  Raymond Papp Strategic Information Technology: Opportunities for Competitive Advantage , 2000 .

[27]  F. Bookstein,et al.  Two Structural Equation Models: LISREL and PLS Applied to Consumer Exit-Voice Theory , 1982 .

[28]  Anol Bhattacherjee,et al.  Understanding Information Systems Continuance: An Expectation-Confirmation Model , 2001, MIS Q..

[29]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[30]  Petter Gottschalk,et al.  Implementation predictors of strategic information systems plans , 1999, Inf. Manag..

[31]  John F. Rockart,et al.  Integrating Management Support Systems into Strategic Information Systems Planning , 1987, J. Manag. Inf. Syst..

[32]  Anthony R White,et al.  Strategic management , 1986 .

[33]  William R. King,et al.  Integration between Business Planning and Information Systems Planning: An Evolutionary-Contingency Perspective , 1997, J. Manag. Inf. Syst..

[34]  Jahangir Karimi,et al.  Strategic Planning for Information Systems: Requirements and Information Engineering Methods , 1988, J. Manag. Inf. Syst..

[35]  Albert L. Lederer,et al.  Information systems planning in a turbulent environment , 2000, Eur. J. Inf. Syst..

[36]  G. Mentzas Implementing an IS strategy—A team approach , 1997 .

[37]  A. D. D. Groot Thought and Choice in Chess , 1978 .

[38]  Arthur A. Thompson,et al.  Strategic Management , 1990 .

[39]  Jerry N. Luftman,et al.  Business and I/T Strategic Alignment:New Perspectives and Assessments , 1995 .

[40]  Yolande E. Chan,et al.  Business Strategic Orientation, Information Systems Strategic Orientation, and Strategic Alignment , 1997, Inf. Syst. Res..

[41]  A. S. Kunnathur,et al.  An investigation of the strategic information systems planning success in Chinese publicly traded firms , 2001, Int. J. Inf. Manag..

[42]  James Martin,et al.  Strategic data-planning methodologies , 1982 .

[43]  James I. Cash,et al.  Managing the Introduction of Information Systems Technology in Strategically Dependent Companies , 1985, J. Manag. Inf. Syst..

[44]  B. Bayus,et al.  Truth or Consequences: An Analysis of Vaporware and New Product Announcements , 2000 .

[45]  J. Scott Armstrong,et al.  Estimating nonresponse bias in mail surveys. , 1977 .

[46]  F. Bookstein,et al.  Two Structural Equation Models: LISREL and PLS Applied to Consumer Exit-Voice Theory: , 1982 .

[47]  G CegielskiCasey,et al.  Emerging information technologies , 2005 .

[48]  Jungchi Pai An empirical study of the relationship between knowledge sharing and IS/IT strategic planning (ISSP) , 2006 .

[49]  Barbara Austin,et al.  The Rise and Fall of Strategic Planning , 1994 .

[50]  Sumantra Ghoshal,et al.  The Strategy Process: Concepts, Contexts, Cases , 1991 .

[51]  J. Rockart Chief executives define their own data needs. , 1979, Harvard business review.

[52]  Jong-min Choe,et al.  The relationship model between the influence factors and the strategic applications of information systems , 1998 .

[53]  J. McCann Strategies for Change: Logical Incrementalism , 1980 .

[54]  Jerry N. Luftman,et al.  Enablers and Inhibitors of Business-IT Alignment , 1999, Commun. Assoc. Inf. Syst..

[55]  Varun Grover,et al.  Strategic Information Systems Planning: Planning System Dimensions, Internal Coalignment, and Implications for Planning Effectiveness , 1998 .

[56]  Hsiu-Fen Lin,et al.  Interorganizational and organizational determinants of planning effectiveness for Internet-based interorganizational systems , 2006, Inf. Manag..

[57]  Michael J. Earl,et al.  Experiences in Strategic Information Systems Planning , 1993, MIS Q..

[58]  P. Earley,et al.  A Selective Review of Time Assumptions in Strategy Research , 2000 .

[59]  Jerry N. Luftman Assessing Business-IT Alignment Maturity , 2000, Commun. Assoc. Inf. Syst..

[60]  Walter Baets,et al.  Aligning information systems with business strategy , 1992, J. Strateg. Inf. Syst..

[61]  Albert L. Lederer,et al.  The impact of organizational commitment, senior management involvement, and team involvement on strategic information systems planning , 2002, Inf. Manag..

[62]  Varun Grover,et al.  Profiles of Strategic Information Systems Planning , 1999, Inf. Syst. Res..

[63]  D. Dillman Mail and internet surveys , 1999 .

[64]  Naresh K. Malhotra,et al.  Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research , 2006, Manag. Sci..

[65]  James C. Wetherbe,et al.  Key issues in information systems management , 1987 .

[66]  Heejin Lee,et al.  Time in Organizational Studies: Towards a New Research Direction , 1999 .

[67]  Elena Karahanna,et al.  Mechanisms for the Development of Shared Mental Models between the CIO and the Top Management Team , 2004, ICIS.

[68]  Jason Bennett Thatcher,et al.  Antecedents and outcomes of strategic IS alignment: an empirical investigation , 2006, IEEE Transactions on Engineering Management.

[69]  Claudio U. Ciborra,et al.  The grassroots of IT and strategy , 1994 .

[70]  Grover S. Kearns,et al.  A Resource-Based View of Strategic IT Alignment: How Knowledge Sharing Creates Competitive Advantage , 2003, Decis. Sci..

[71]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[72]  K. Arrow,et al.  Environmental Preservation, Uncertainty, and Irreversibility , 1974 .

[73]  Albert L. Lederer,et al.  The Implementation of Strategic Information Systems Planning Methodologies , 1988, MIS Q..

[74]  Husnayati Hussin,et al.  IT alignment in small firms , 2002, Eur. J. Inf. Syst..

[75]  Richard J. Butler,et al.  Time in organizations: Its Experience, . Explanations and Effects , 1995 .

[76]  Petter Gottschalk,et al.  Implementation of formal plans: the case of information technology strategy , 1999 .

[77]  Henry Mintzberg,et al.  The Structuring of Organizations , 1979 .

[78]  Jerry N. Luftman,et al.  Achieving and Sustaining Business-IT Alignment , 1999 .

[79]  Elena Karahanna,et al.  Time Flies When You're Having Fun: Cognitive Absorption and Beliefs About Information Technology Usage , 2000, MIS Q..

[80]  Eric K. Clemons,et al.  Strategic Information Technology Investments: Guidelines for Decision Making , 1990, J. Manag. Inf. Syst..

[81]  Paul Shrivastava,et al.  Strategic planning for MIS , 1983 .

[82]  P. H. Friesen,et al.  Innovation in Conservative and Entrepreneurial Firms: Two Models of Strategic Momentum , 1982 .

[83]  Alexander Hars,et al.  Web Based Knowledge Infrastructures for the Sciences: An Adaptive Document , 2000, Commun. Assoc. Inf. Syst..

[84]  W. R. King,et al.  Decision Processes for Developing Strategic Applications of Information Systems: A Contingency Approach* , 1992 .

[85]  Guy Paré,et al.  Matching information technology and organizational structure: an empirical study with implications for performance , 1995 .

[86]  R. Frank Falk,et al.  A Primer for Soft Modeling , 1992 .

[87]  F. Warren McFarlan,et al.  Problems in Planning the Information System. , 1971 .

[88]  William R. King,et al.  Strategic Planning for Management Information Systems , 1978, MIS Q..

[89]  Edward G. Carmines,et al.  Reliability and Validity Assessment , 1979 .

[90]  Ephraim R. McLean,et al.  Key Issues for IT Executives , 2004, MIS Q. Executive.

[91]  Deborah Compeau,et al.  Social Cognitive Theory and Individual Reactions to Computing Technology: A Longitudinal Study , 1999, MIS Q..

[92]  Albert L. Lederer,et al.  The impact of autonomy on information systems planning effectiveness , 2008 .

[93]  M. Lindell,et al.  Accounting for common method variance in cross-sectional research designs. , 2001, The Journal of applied psychology.

[94]  Dale Goodhue,et al.  What Happens After ERP Implementation: Understanding the Impact of Interdependence and Differentiation on Plant-Level Outcomes , 2005, MIS Q..

[95]  Richard L. Daft,et al.  Message Equivocality, Media Selection, and Manager Performance: Implications for Information Systems , 1987, MIS Q..

[96]  Thompson S. H. Teo,et al.  Critical success factors in the alignment of IS plans with business plans , 1999 .

[97]  Hsiu-Fen Lin,et al.  Influence of environmental and organizational factors on the success of internet-based interorganizational systems planning , 2005, Internet Res..

[98]  John C. Henderson,et al.  Strategic Alignment: Leveraging Information Technology for Transforming Organizations , 1993, IBM Syst. J..

[99]  Kenneth L. Kraemer,et al.  Executives’ Perceptions of the Business Value of Information Technology: A Process-Oriented Approach , 2000, J. Manag. Inf. Syst..

[100]  Rajiv Sabherwal,et al.  The Relationship Between Information System Planning Sophistication and Information System Success: An Empirical Assessment* , 1999 .

[101]  William R. King,et al.  The evaluation of strategic information system planning , 1994, Inf. Manag..

[102]  Cynthia Mathis Beath,et al.  Linking Information Technology and Corporate Strategy: an Organizational View , 1986, ICIS.

[103]  William R. King,et al.  An Empirical Assessment of Information Systems Planning and the Role of Information Systems in Organizations , 1992, J. Manag. Inf. Syst..

[104]  Danny Miller,et al.  Archetypes of Organizational Transition. , 1980 .

[105]  Ceo,et al.  Strategic Management Journal 4 , 1994 .

[106]  George G. Lee,et al.  Effects of organizational context and inter-group behaviour on the success of strategic information systems planning: An empirical study , 2003, Behav. Inf. Technol..

[107]  Izak Benbasat,et al.  Measuring the Linkage Between Business and Information Technology Objectives , 1996, MIS Q..

[108]  Terry S. Overton,et al.  Estimating Nonresponse Bias in Mail Surveys , 1977 .

[109]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[110]  C. Lindblom THE SCIENCE OF MUDDLING THROUGH , 1959 .

[111]  Michael E. Brookfield The Time Dimension , 2008 .

[112]  Albert L. Lederer,et al.  Rapid Information Technology Change, Coping Mechanisms, and the Emerging Technologies Group , 2001, J. Manag. Inf. Syst..

[113]  R. Galliers Strategic information systems planning: myths, reality and guidelines for successful implementation , 1991 .

[114]  Raghu Garud,et al.  Vicious and Virtuous Circles in the Management of Knowledge: The Case of Infosys Technologies , 2005, MIS Q..

[115]  P. Drucker Managing in the Next Society , 2002 .

[116]  T. S. Raghunathan,et al.  Information systems planning and effectiveness: An empirical analysis , 1991 .

[117]  Rajiv Sabherwal,et al.  The Alignment between Organizational Critical Success Factors and Information Technology Capability in Academic Institutions , 1994 .

[118]  Robert A. Atkinson,et al.  Reshaping IS Strategic Planning , 1990 .

[119]  John C. Camillus,et al.  Reconciling logical incrementalism and synoptic formalism—an integrated approach to designing strategic planning processes , 1982 .

[120]  Ton A. M. Spil,et al.  Dynamic and emergent information systems strategy formulation and implementation , 2002, Int. J. Inf. Manag..

[121]  Michel Tenenhaus,et al.  PLS path modeling , 2005, Comput. Stat. Data Anal..

[122]  Varun Grover,et al.  Strategic Manufacturing Planning Systems and Their Linkage to Planning System Success , 2002, Decis. Sci..

[123]  George S. Day,et al.  Avoiding the Pitfalls of Emerging Technologies , 2000 .