The IS-business relationship and its implications for performance: An empirical study of South African and Australian organisations

Lack of a close 'Information systems (IS)-business relationship' has been described as a potential inhibitor to improving the contribution that information systems (IS) make to business performance. Yet the value of specific attributes of an enduring relationship between IS and business remains to be demonstrated by empirically confirming their link to IS performance. Using data collected from 167 South African and Australian companies, this study examined the effect of three relational attributes, namely commitment, mutual understanding and shared vision, on the contribution of IS to business performance. The study also examines the interrelationship amongst the relational attributes. Results revealed that a strong IS-business relationship is a significant determinant of IS performance. Organisations more successful in their use of IS are characterised by strong commitment on the part of the business to IS efforts, higher levels of IS understanding of the business, and a long-term agreement, between business and IS executives, on IS priorities. Results have important implications for organisations looking to improve the contribution of IS to organisational performance.

[1]  R KingWilliam,et al.  Integration between business planning and information systems planning , 1997 .

[2]  Thompson S. H. Teo,et al.  CSFs and sources of assistance and expertise in strategic IS planning: a Singapore perspective , 1997 .

[3]  Dan Remenyi.  Ten Common Information Systems Mistakes , 1996 .

[4]  V. Sambamurthy,et al.  Information Technology Assimilation in Firms: The Influence of Senior Leadership and IT Infrastructures , 1999, Inf. Syst. Res..

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

[6]  Wynne W. Chin.  Issues and Opinion on Structural Equation Modeling by , 2009 .

[7]  Mark Lycett,et al.  Understanding the business-IT relationship , 2005, Int. J. Inf. Manag..

[8]  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..

[9]  Grover S. Kearns,et al.  The effect of strategic alignment on the use of IS-based resources for competitive advantage , 2000, J. Strateg. Inf. Syst..

[10]  J. Hair.  Multivariate data analysis , 1972 .

[11]  Kate M. Kaiser,et al.  User-Analyst Differences: An Empirical Investigation of Attitudes Related to Systems Development1 , 1982 .

[12]  Alain Pinsonneault,et al.  Survey Research Methodology in Management Information Systems: An Assessment , 1993, J. Manag. Inf. Syst..

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

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

[15]  Izak Benbasat,et al.  Business Competence of Information Technology Professionals: Conceptual Development and Influence on IT-Business Partnerships , 2004, MIS Q..

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

[17]  Michel Avital,et al.  The relationship between psychological ownership and IT-driven value , 2000, ICIS.

[18]  J. C. Henderson.  PLUGGING INTO STRATEGIC PARTNERSHIPS: THE CRITICAL IS CONNECTION , 1990 .

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

[20]  Dale Goodhue,et al.  Develop Long-Term Competitiveness through IT Assets , 1996 .

[21]  Kay M. Nelson,et al.  International Conference on Information Systems ( ICIS ) 1993 THE CONTRIBUTION OF SHARED KNOWLEDGE TO IS GROUP PERFORMANCE , 2017 .

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

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

[24]  Varun Grover,et al.  Using information and information technology for sustainable competitive advantage: Some empirical evidence , 1989, Inf. Manag..

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

[26]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[27]  G Premkumar.  Evaluation of strategic information system planning : empirical validation of a conceptual model , 1989 .

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

[29]  David J. Silk.  Managing IS benefits for the 1990s , 1990, J. Inf. Technol..

[30]  Jeff Moad.  New rules, new ratings as IS reengineers , 1993 .

[31]  SambamurthyV.,et al.  Information Technology Assimilation in Firms , 1999 .

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

[33]  Joe Peppard,et al.  Bridging the gap between the IS organization and the rest of the business: plotting a route , 2001, Inf. Syst. J..

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

[35]  David F. Larcker,et al.  Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics: , 1981 .

[36]  Sid L. Huff,et al.  How CIOs obtain peer commitment to strategic IS proposals: barriers and facilitators , 2001, J. Strateg. Inf. Syst..

[37]  Rolph E. Anderson,et al.  Nederlandse samenvatting en bewerking van 'Multivariate data analysis, 4th Edition, 1995' , 1998 .

[38]  T. S. Ragu-Nathan,et al.  Relationship of the Rank of Information Systems Executive to the Organizational Role and Planning Dimensions of Information Systems , 1989, J. Manag. Inf. Syst..

[39]  Jeff Moad.  Life after the merger at BankAmerica , 1993 .

[40]  J. Rockart,et al.  EIGHT IMPERATIVES FOR THE NEW IT ORGANIZATION , 1996 .

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

[42]  Albert L. Lederer,et al.  Toward a theory of strategic information systems planning , 1996, J. Strateg. Inf. Syst..

[43]  David F. Feeny,et al.  Understanding the CEO/CIO Relationship , 1992, MIS Q..

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

[45]  Izak Benbasat,et al.  Factors That Influence the Social Dimension of Alignment Between Business and Information Technology Objectives , 2000, MIS Q..

[46]  L. Willcocks,et al.  Core IS Capabilities for Exploiting Information Technology , 1998 .